business
wm ance lining and rigid foam boardstock. Together with a smaller use in spray foam roofing, these foam markets ac count for about 125 million lb of 141b consumption in the U.S. today. However, fluorocarbon makers concede the mar ket is likely to fragment in the future, with different segments going to differ 31, 2002, when U.S. HCFC-l4lb produc ent blowing agents. The appliance segment—populated tion and import are scheduled to end. Gurzo says LaRoche, for one, is being by big companies such as General Elec cautious. The company's Baton Rouge, tric, Frigidaire, Maytag, and WhirlpoolLa., R&D center recently completed sev is the most prominent of the three, but it eral million dollars' worth of engineering consumes only about 25 million lb of and pilot work on an HFC-245fa produc 14lb per year. The largest is the boardtion process that Gurzo claims has a stock sector, made up of less well "fundamental cost advantage" over com known firms such as Atlas Roofing, Exeltherm, and Apache Products. peting routes. John Clinton, technical director for Nonetheless, he says LaRoche has put its 245fa program "into neutral," pending the Polyisocyanurate Insulation Manufac positive signs from customers. "We're be turers Association, the trade group that low reinvestment economics on l4lb, and represents boardstock makers, says his 245fa has market risk and technical risk," members want as many options for re he says. "We'll support the market, but we placing 14lb as possible. An early move by one member, though, shows that at have to be able to make a fair return." Likewise, AlliedSignal, which has been least some boardstock makers are eyeing supplying the industry with pilot quanti hydrocarbon blowing agents as an alter ties of 245fa from a plant in Buffalo, has native to fluorocarbons. Atlas Roofing Corp., an Atlanta-based pushed its commercialization plans back. Last year, Allied was telling the appliance producer of roofing and insulation prod industry that it expected to begin full-scale ucts, has already converted its LaGrange, production of 245fa in 1999. Now, how 111., boardstock plant to hydrocarbon ever, Brian Strauss, marketing manager for blowing agents and partially converted its foam, says commercial start-up likely will Mesa, Ariz., facility. Roger Reeves, vice president of operations for Atlas, says the be in the first quarter of 2002. Some AlliedSignal competitors doubt company's intent is to convert all six of its that the company will go ahead at all. plants to hydrocarbons over time. According to Reeves, the number one "People in the market are saying, Ί don't believe 245fa is happening; what else do reason that Atlas is going with hydro carbons is that alternatives—namely you have?' " says one. To succeed, 245fa must win over at 245fa—aren't available now. Even if they least some current HCFC-l4lb custom were, he adds, the pricing that has been ers in its two main markets: foam appli- discussed is high. HCFC-l4lb sells for a little more than $1.00 per lb. Hydrocarbons, generally blends of pentane isomers, sell for any Steady rise in global where from 30 cents to $1.00 per lb. HFCHCFC-141b output 245fa isn't sold commercially, but industry observers say Allied is talking about prices Production,3 millions of lb 300 ranging from $3.00 to $4.00 per lb. While other producers have yet to 250 make choices, Atlas, as one of the top two players in the industry, is seen as setting a 200 trend in boardstock away from fluorocar 150 bons. If so, then the smaller appliance sec tor will be left as the only significant home 100 for fluorocarbon blowing agents. Len Swatkowski, director of engineer 50 ing at the Association of Home Appliance ο 0.2 Manufacturers, says the jury is still out on 1990 91 92 93 94 95 96 which way his members will go. "No mag a For dispersive use only. Source: Alternative ical chemical has come out of the chemi Fluorocarbons Environmental Acceptability Study cal companies that's economically viable,"
Blowing Agent Phaseout Looms anufacturers of rigid polyurethane foam in the U.S. have a lit tle more than four years to find new blowing agents to replace their cur rent product of choice, hydrochlorofluorocarbon (HCFC>l4lb (CH^CFCl^. Howev er, while the pressure to act is mounting, no clear replacement has emerged. Hydrofluorocarbon (HFC)-245fa (C3H3F5), once poised as the leading can didate to replace HCFC-l4lb, seems like less of a sure thing today. Other products are being tested, but none offers all the benefits of 141b. HCFC-l4lb itself is a replacement for CFC-11 (CFCI3), long used to blow polyurethane into rigid insulation boards and the inner lining of refrigerators and freez ers. U.S. CFC-11 production was phased out at the end of 1995, but foam makers found a virtually drop-in substitute in 141b. Further smoothing the transition was that CFC-11 producers such as AlliedSignal, LaRoche Industries, and Elf Atochem were able to convert existing plants to make 14lb at a considerable savings over grassroots construction. With the new use in foam blowing, HCFC-l4lb production skyrocketed, go ing from 30 million lb globally in 1992, to 265 million lb in 1996, according to the Alternative Fluorocarbons Environ mental Acceptability Study, a fluorocarbon producer group. However, once in the business, these companies found the 14lb market less than satisfying. "I don't think there's a company out there that has been com pletely happy with its HCFC invest ment,'' says Vincent R. Gurzo, vice presi dent for specialty chemicals at Atlantabased LaRoche. The profit story is much the same for HFC-134a (CH2FCF3), the replacement for CFC-12 (CC12F2) in automobile air conditioners and other refrigerant appli cations. DuPont, AlliedSignal, and Elf Ato chem got into this business with much fanfare, only to find a low-priced market that didn't live up to demand forecasts. As a result, fluorocarbon producers are wary about the upcoming transition to so-called third-generation polyurethane foam blowing agents, set for Dec. 18 AUGUST 17, 1998 C&EN
Gurzo: producers need fair return
he says, and meets all the environmental and technical needs of appliance makers. More so than boardstock makers, appliance firms need to maintain l4lb's good insulation properties because, in addition to the 14lb phaseout at the end of 2002, they are faced with a July 1, 2001, deadline for achieving Department of Energy-mandated refrigerator energy consumption reductions of about 30% from 1993 levels. Strauss says Allied's earlier 1999 commercialization target was intended to make 245fa available by the 2001 energyefficiency deadline so only one refrigerator redesign would be necessary. Now, though, Strauss says customers are telling Allied they need it only for 14lb phaseout at the end of 2002. Allied is confident that 245fa is the product of choice for the appliance industry, but it may not be embraced universally. Like boardstock, appliance foam can be blown with hydrocarbons (C&EN, Aug. 3, page 33), and HFC-134a can also be used. But neither product is as good an insulator as 14lb, and they both carry energy penalties that could be as high as 10%. HFC-245fa, in contrast, has a penalty of less than 1%. Appliance makers aren't talking publicly about how they will address the phaseout. One fluorocarbon industry source says General Electric Appliances, for example, is planning to use 134a as its nextgeneration blowing agent, leaving 245fa behind. "It has too high a price and it's coming too late," he says of 245fa. A GE Appliances spokesman will say only that the company continues to evaluate the possible alternatives to 14lb, bal-
ancing effectiveness against availability and value. "Tomorrow's technical advances may change the view of what looks like a good alternative today," he adds. Also making potential 245fa users squeamish is the patent situation, notes Steven M. Galaton, business manager for foams and specialties at Elf Atochem North America. Bayer, a major producer of the isocyanates used to make polyurethane foam, owns the application patent that covers the manufacture of foam with HFC-245fa, and in North America the company has licensed it exclusively to AlliedSignal. Galaton says Elf Atochem, the world's largest producer of HCFC-l4lb, in Calvert City, Ky., and Pierre-Benite, France, has developed technology that would allow it to produce 245fa and other thirdgeneration replacements in retrofitted plants. So far, though, it has held back, in part because of the patent barrier. LaRoche's Gurzo acknowledges the existence of the patent, but he is hopeful that it's not an insurmountable obstacle to producers other than Allied. "It's hard to imagine that the industry is going to
embrace a sole supplier of 245fa," he says. "Customers will be anxious to have at least two participants in the industry." The clock is ticking, but there is still time for HFC-245fa. Gurzo says it took LaRoche less than 18 months to build its 14lb plant in Gramercy, La., and it could be onstream with 245fa in 18 months to two years. "We see the critical decision point out about a year," he says. Likewise, Galaton says Elf Atochem can continue to determine market desire and still complete a retrofitted plant in time. Strauss says Allied wants to secure customer commitments to 245fa in time to begin constructing a commercial facility, a 24- to 30-month endeavor, in late 1999 or early 2000. He acknowledges that customers have the final say in the commercialization of 245fa but hopes that commitments will come later this year or early in 1999. "Everyone is holding options close to the vest on this one," says Swatkowski of the appliance association, "all or none of which may be the ones they go with. Within the next six months, someone needs to make a decision." Michael McCoy
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