Economics of Chlorofluorocarbon (CFC) Machine Replacement

Continued use of chlorofluorocarbon (CFC) refrigerants may have a severe financial as well as operational impact on the users of air-conditioning and other refrigeration equipment as price increases continue and production is phased out. With production of CFC's coming to a halt on 31 December 1995, the two major refrigerants that have been used in commercial and industrial cooling applications will no longer be available. The phase out of production is a result of national and international agreement that these, as well as other CFC's, are a primary cause of the depletion of the stratospheric ozone layer. To help the user reduce this impact, an economic model based on the time value of money and utilizing replacement analysis was developed. The model is designed to require the user to supply information on his own equipment and on the projected costs of non-CFC replacement equipment. After running the model, the point in time when the existing equipment should be replaced is indicated. By way of example, the model is applied to a centrifugal chiller application. The results of this approach indicate that the increase in CFC costs is only a small factor in the cost of chiller operation. Rather than make a replacement to avoid the high price of refrigerant, the controlling factor is the overall cost of power consumption required to provide the cooling effect