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200 13.2%) 8.4%) 22.1%) 45.4%) 1.5%) 4.1%) 4.0%) 1.4%) 58.1 18.9

GHP) - GHP) - GHP) GHP) - -

-6% CO 2,CH 4,N 2 O : -2.5% HFC, PFCs, SF6 :+2.0% Others (Sink, Kyoto Mechanism: -5.5% -0.6% +0.1% -5.5% million CO2-ton 3.2~5-6% - Japan s Commitment) From News Release of MOE

CFC HCFC HFC 10 4 ton 6.0 5.0 Metric Tons CFC HCFC HFC 4.0 3.0 2.0 1.0 0.0 92 94 96 98 00 02 04 10 3 ODPton ODP Tons 10 GWPton GWP Tons 25 20 15 CFC HCFC 30 25 20 15 CFC HCFC HFC 10 10 5 5 0 92 94 96 98 00 02 04 0 92 94 96 98 00 02 04

Ozone Layer Protection HCFC Phase out Schedule Phase out Schedule of HCFCs by Montreal Protocol (1995) Phase out Schedule of HCFCs in Japan (1997)

GWP

Conversion from HCFCs to HFCs Residential A/C HCFC22 HFC410A Commercial A/C HCFC22 HFC407C HFC410A HFC410A HFC407C / HFC410A HCFC22 HCFC22 The conversion from HCFC to HFC has been almost completed in 2005 (98.2% of new products residential & commercial A/C) HCFC22 Phaseout Target for All A/C & Ref. is 2010

kgco2/unit 6000 Example of LCA LCCO2) for Mini Split A/C 5800 5600 Cooling Capacity2.8kW COP=5.33 Recovery Rate=60% Life=12years (85.2%) (0.4%) (2.0%) (0.1%) (0.1%) (-0.6%) Refrigerant=HFC410A (12.8%) Calculated based on the Kobe symposium papers

CFC12 CFC 12 (03/10) (02/4) (01/4) 93/10)

RRC Refrigerants Recycling Promotion and Technology Center

Actually Recovered Fluorocarbon Refs. (a) Residential A/C & Refrigerators 10 Recovered Units 3 Units Refrigerant Recovery 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2005 Residential A/C (value in 2004) Refrigerator (value in 2004) Units (10 3 ) 1991 (1814) Recovery 2824 (2801) Refs. (ton) (955) (311) Air Conditioner, Refrigerator Refrigerant Amount in 2005 has not been published yet From News Release of METI

Actually Recovered Fluorocarbon Ref. (b)commercial A/C & Ref. Equipments Units Refrigerant Amount Recovered Units (10 3 ) Recovered Refrigerant Amount (tons) Recovered Amount in 2005 has not been published yet From News Release of METI

Typical Recycling Plant Photovoltaic Power Generation Hyper Cycle Systems Corporation in Ichikawa city, near Tokyo Air conditioned Disassembling line

Refrigerant Recovery Process

Disassembling Process

Disassembled Parts Operation of Power units Disassembling Power units Outdoor Units of Room Air-conditioner Capacitors

Transition of Energy Efficiencies Room Air-Conditioner 2.5kW Class COP = CapacityInput (Coefficient of Performance) 5.27

Target COP by Top Runner Method COP 5.5 5 4.55 Target COP of Current Wall Mounted Mini-Sp it A/Cs and Heat Pumps 4 3.5 3 2.5 2 5.27 -Evaluation by Average COP- Average COP= 2.96 4.9 3.23 Rated Cooling Capacity Power Input 3.65 2.76 + 2 Energy efficiency improvement Rated Heating Capacity Power Input 3.12 3.06 2.46 2.59 2.5kW 3.2kW 4.0kW 7.1kW 28.0kW Achieved in 2004 Target Year in 2007 67.8% Energy Efficiency was increased in 2004 from 1997

Change of Evaluation Index from COP to APF APF (Annual Performance Factor) Index introduced as New Measure APF=(CSTL+HSTL) CSTE+HSTE) where CSTL, HSTL, CSTE & HSTE : Seasonal Total Load or Power Input In Cooling or Heating Operation 22.4% Energy Reduction is expected in 2010 from present value New Target APF of Wall Mounted Mini-Sprit A/Cs and Heat Pumps APF New Target Indoor Unit Under Specified Dimensions Over Specified Dimensions Cooling Capacity Under 3.2kW Under 4.0kW 5.8 4.9 6.6 6.0 Top APF in Present Market Under Specified Dimensions Over Specified Dimensions 5.7 6.4 4.8 5.8 Specified Dimensions of Indoor Unit: Width=800mm Height=295mm Depth=free

CO2

New Nationwide Energy-saving Label The Label is attached to the Products by the Stores How high is the Performance of this Product? Energy-saving Level shown by 5 Stars Green e mark means APF more than the top runner target, while Orange does not APF Performance Level (%) Annual Power Consumption kwh/year) Manufacturer and Model Name Annual Electricity Cost Yen) Label Example (Air-conditioner)

NEDO CO2 CO2

(2)Practical Applications of Natural Refrigerants CO 2 Water Heater 2001 Sales of CO2 HP Water Heaters R600a Refrigerator NH 3 Commercial Refrigeration 2002 2001 Special Use) 10 3 Units FY CO 2 MAC 2002 Special Use) CO 2 hot water heaters already in market - Most of major A/C manufacturers - Most efficient way to apply CO 2 HC, CO 2 Vending Machine 2004

(3) Research Activities in Japan HC NH3/CO2 CO2 AIR Water Product in Market -Refrigerators -Vending machines -Large Ref. machines -Chillers -Water heaters -Vending machines -Refrigerated Warehouses -Absorption Chillers R & D -A/Cs with Water Heaters -Chillers -Chillers with CO 2 /Propane Mixture -Smaller commercial equipment -Automobile A/C -Air Conditioners -Desiccant Cooling Non-Fluorocarbon Research Project supported by METI/NEDO started in 2005 (Underlined Equipment)