SRI Consulting Publishes 2008 Fluorocarbons Report

Despite Phasedown Protocols, Global Consumption will Grow 3.2%/yr through 2012

MENLO PARK, CA. July 3, 2008— The fluorocarbons industry has dealt with the phaseout of CFCs (chlorofluorocarbons), the rise and fall of HCFCs (hydrochlorofluorocarbons) in the US, Europe and Japan, and now the industry is growing again with HFCs (hydrofluorocarbons) combined with HCFC-22 and HFC-134a, primarily in China. Today, SRI Consulting (SRIC) published its 2008 Fluorocarbonsreport, which studies the most recent market and regulatory developments to clarify the position and direction of this quickly changing industry. 

Refrigeration uses of HCFCs in developed countries are continuing to be phased out under the Montreal Protocol, and the U.S. is banning HCFCs in new equipment starting in 2010.  In complying with the Kyoto Protocol on greenhouse gas emissions, Europe is phasing out HFC-134a refrigerants used for air conditioning in new car models starting in 2011. HFC-134a is the fluorocarbon that replaced CFC-12 in developed countries in the early 1990s under the Montreal Protocol.

SRIC’s global report examines the differences in regulations for China and other developing countries under both the Montreal and Kyoto Protocols in that they are allowed to use ozone-depleting and global-warming fluorocarbons longer. The United States, while having signed but not ratified the Kyoto Protocol, is not restricted from using global warming HFCs, and consumption is growing.  Europe and Japan, having ratified both the Montreal and Kyoto Protocols, show the world’s least growth due to more restrictive uses of these products and greater use of alternatives to fluorocarbons.  At the same time, being classified as a developing country and not under the same restrictions as a developed country, China’s growing demand for conventional refrigeration and air conditioning and fluoropolymer production creates a very different paradigm for consumption of fluorocarbons while still being compliant with Montreal and Kyoto Protocols. As a result we are seeing China starting up HCFC-22 and HFC-134a plants at the same time Europe is closing them, yet both regions are compliant with regulations. Despite the phasedowns, this is a $10 billion global market, growing at 3.2%/yr in volume over the next five years with the greatest growth in production and consumption in China.

Lead author Ray K. Will commented, “The news certainly isn’t all bad; especially for innovative companies that can respond to the need for new environmentally benign products, such as fluorocarbons HFC-245fa and HFC-365mfc used in energy efficient insulation foams.  The biggest challenge fluorocarbon producers face is coping with a rationalizing market and the emergence of China based competition as the product mix continues to change and older products are phased out by regulations.”

SRIC’s 2008 Fluorocarbonsreport provides current and comprehensive information on the global fluorocarbon industry, including trends, supply and demand, and analysis of the competitive environment.  

For additional information about the Fluorocarbons report, please contact Koon-Ling Ring
kring@sriconsulting.com or +1-650-384-4359, or visit the website at www.sriconsulting.com/CEH.

About SRI Consulting (SRIC)
SRI Consulting is the world’s leading business research service for the global chemical industry. Publishing for almost 60 years, SRI Consulting is the preeminent source for in-depth business and process analysis.  This report was developed by the Chemical Economics Handbook (CEH) group, which provides evaluation of supply/demand relationships and analysis of the industry competitive environment for over 300 chemical products and product groups.  SRI Consulting's headquarters are located in Menlo Park, California with offices in The Woodlands, Texas; Zürich, Switzerland; Tokyo, Japan; and Beijing, China.  SRI Consulting is a division of Access Intelligence, LLC. Additional information is available at www.sriconsulting.com.

SRI Consulting (SRIC) is a trade name and a registered trademark of SRI International, used under license.