Colorado-Real-Estate-Journal_435994
Page 26 — Office & Industrial Quarterly — December 2024 www.crej.com INDUSTRIAL — CONSTRUCTION C O L O R A D O SAVE THE DATE EMERGING TRENDS IN REAL ESTATE 01.31.2025 PRESENTING SPONSOR: The Studio Loft at Ellie Caulkins Opera House additional details coming soon... T he regulation of refrigerants has evolved significantly, driv- en by environmental concerns and technological advance- ments. Colorado’s adoption of new refrigerant codes marks a pivotal shift for developers, designers, property owners and construction professionals. This article examines the historical context of refrigerant use, current practices, forthcoming changes, and their potential impacts on the real estate and construction industries. n Historical context of refrigerant use. Refrigerants are essential in air con- ditioning and refrigeration systems, facilitating heat transfer to provide cooling. Early refrigerants included hazardous substances like ammonia and sulfur dioxide. The mid-20th cen- tury introduced chlorofluorocarbons, valued for their stability and effi- ciency. However, CFCs were found to deplete the ozone layer, leading to the 1987 Montreal Protocol, which man- dated their phase-out. Hydrochlorofluorocarbons and later hydrofluorocarbons emerged as alternatives. While HFCs do not harm the ozone layer, they possess high global warming potentials, contribut- ing significantly to climate change. This realization spurred interna- tional agreements, such as the Kigali Amendment to the Montreal Protocol in 2016, aiming to reduce HFC usage globally. n Current refrigerant practices and upcoming changes. Presently, HFCs like R-410A and R-134a dominate HVAC systems. R-410A, for instance, has a GWP of 2,088, indicating its sub- stantial impact on global warm- ing. The American Innovation and Manufacturing Act of 2020 authorized a 15-year phasedown of HFCs across vari- ous applications, including HVAC systems. Effec- tive Jan. 1, 2025, Colorado’s updated refrigerant codes will mandate the use of low-GWP refrigerants in new HVAC equip- ment installations. This aligns with federal regulations under the AIM Act and Environmental Protection Agency mandates, which set a GWP limit of 750 for refrigerants in new air conditioning equipment. Conse- quently, refrigerants like R-410A will be replaced with alternatives such as R-32 and R-454B, which have GWPs of 675 and 466, respectively. n Scope of the new code. The new refrigerant requirements apply pri- marily to new HVAC equipment manufactured and installed after Jan. 1, 2025. Existing systems using HFCs like R-410A can continue operating and will be serviceable with the same refrigerants. However, as production of high-GWP refrigerants decreases, their availability is likely to diminish, potentially increasing costs for servic- ing older systems. It is recommended that building owners with aging HVAC systems should proactively evaluate their replacement timeline to avoid service disruptions or inflat- ed costs. n Cost considerations. While the new refrigerant R-32 is approximately 90% less expensive per pound than R-410A in wholesale terms, the initial costs of adopting systems using R-32 are likely to be higher. This is due to several factors: increased equipment costs driven by the complexity of systems required to handle R-32’s mildly flam- mable nature, less efficiency in the manufacturing process as equipment designs are still in their early stages, and higher labor costs for installation due to more stringent safety require- ments and specialized training. Addi- tionally, inefficiencies in supply chains and production associated with the early stages of adoption further contribute to the upfront expense. However, as the industry ramps up production and refines manufacturing processes, these initial inefficiencies are expected to diminish. Over time, economies of scale and improved design efficiencies will likely bring equipment and installation costs down, potentially below the current levels of R-410A-based systems. Furthermore, operational costs for R-32 systems will be significantly lower due to enhanced energy effi- ciency and reduced refrigerant charge requirements. R-32 systems can achieve better cooling perfor- mance with less refrigerant, and their improved thermodynamic properties result in lower energy consumption over the system’s lifespan. These sav- ings in operational costs provide a compelling long-term financial and environmental benefit, offsetting the higher upfront investment. n Lead times for equipment. The tran- sition to new refrigerants has impact- ed supply chains and lead times. Manufacturers are retooling produc- tion lines to accommodate low-GWP refrigerants, resulting in potential delays for new HVAC systems. Indus- try reports suggest that systems using R-32 may initially face extended lead times due to the increased demand and production adjustments. Develop- ers and contractors should plan early to account for potential delays. n Equipment compatibility and system design. R-32 refrigerant operates at similar pressures to R-410A but has distinct thermodynamic properties that necessitate equipment designed specifically for R-32. Retrofitting exist- ing R-410A systems to accommodate R-32 is not feasible, requiring com- plete replacement of HVAC systems to comply with the new codes. Addi- tionally, R-32’s classification as an A2L refrigerant – indicating low toxic- ity and mild flammability –requires updated safety standards. This includes incorporating leak detection systems, ensuring proper ventilation and using equipment with enhanced safety features. While this adds complexity to initial installations, advancements in technology are sim- plifying maintenance and operation, making future systems more efficient and reliable. n Conclusion. Colorado’s new refrig- erant codes aim is to improve the sustainability and reduce the environ- Plan ahead: Navigating new refrigerant code Derek Simpson President, Alcorn Construction Please see Simpson, Page 29
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