CCME - July 2023

PERFORMANCE IN HVACR

GUEST COLUMN

FZ and UAE Corporate Tax

Krishnan Unni Madathil, Auditor, Bin Khadim, Radha & Co Chartered Accountants

EDITORIAL CAMPAIGNS

CURTAIN-RAISER

REFCOLD India 2023 REFCOLD to spotlight food loss and remedial measures

Food Chain (11th Edition) Driving the cold chain food safety narrative

COP28: The importance of stocktaking

Dr Rajendra Shende, Former Director,

UNEP

Building Tracing & IEQ: ‘Hang on, help is on the way!’

Jeremy McDonald, Principal, Guth DeConzo Consulting Engineers, New York

Sustainable Solutions that help Cool

The Most Beautiful Building on Earth

Innovation brings in significant positive change. Empower works to find ways to innovate and improve its processes, and o erings to create services that are e cient, sustainable and impactful.

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Surendar

Editor

THE build up to COP28, in Q4 2023 in the UAE, is quite interesting for the sheer diversity of responses, which include paranoia and blame-shifting, ungainly browbeating and dialectical discussions. There is rosy optimism that the rise in temperatures can be stalled, and then there are those that drip cynicism in every word they utter.

The complexity is layered, with the interplay of regional and national self-interests being a key one, in addition to those that wave historical data as evidence and speak of extreme forms of climate injustice.

It is important to consider all perspectives, and there are many that are affected in varying degrees. Take the case of Small Island Developing States (SIDs), who are facing a near-term existential threat. Many of them already face waters climbing to uncomfortable levels, to the extent that entire habitations of people have to be relocated. These climate refugees are calling out for justice, for they rightfully see themselves as parcels of land that have contributed the least to the present-day climate crisis but are having to suffer the most.

Their frustration stems from the fact that those countries that they believe are responsible for the current state of affairs are not honouring their commitments. The pledges made in the build up to COP26 remain just that – more honoured in the breach than the observance. And a promise of annual financial assistance of USD 10 billion a year from 2010 to the target of USD 100 billion a year by 2020 became a mocking-stock for failure to adhere; today, the cumulative amount of that inaction by developed countries stands at almost a staggering USD 1 trillion, the SIDs and the others of their ilk point out.

That’s the condition at a macro level. We are seeing no less inaction at corporate level. Entire organisations – including those in the HVACR industry – are speaking fervently on green action and broad ESG goals but are failing to walk the talk in a concerted, consensusbased manner. There is a profound absence of collective will and the intent to look beyond commercial scope of interest. And the implications of this mindset are hitting us hard. As was obvious from the Canadian wildfires of June 2023, the cause was climate change, and the impact was poor outdoor air quality, horribly manifested as red-hued skies over New York City, amongst other places. The fight against climate change is a serious affair, as is the need for better Indoor Environmental Quality. If truth be said, we are not doing enough to address either.

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Kandasamy Anbalagan Managing Partner, Proleed Engineering Consultants, writes on the need for upholding time-tested engineering principles, which would only serve to complement advances in technology.

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Principal of Guth DeConzo Consulting Engineers, in New York. He served as the technical consultant to the New York State Energy Research and Development Authority in development of an IAQ guideline for Higher Education in NY: “Covid-19 Response Guide, State University of New York”.

Dan Mizesko

Managing Partner/President, US Chiller Services International, writes on issues relating to chilled water systems, including operation & maintenance

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Published by Founder, CPI Media Group Dominic De Sousa (1959-2015)

Senior Technical Analyst, AHRI MENA, writes on HVACR-specific regulation issues

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MACRO-ECONOMIC ANALYSIS:

By Krishnan Unni Madathil

FZ AND UAE CORPORATE TAX

What

IN THIS segment, which is a continuing part of a series of articles on the ongoing implementation of Corporate Tax in the UAE, the focus will be laid on the subject of free zone entities and the special treatment of free zone entities under the new tax regime. Several enterprises in the HVACR industry in the UAE are incorporated as free zone companies (FZCs) and as free zone entities (FZEs), and the following insights would be highly relevant to them. The Corporate Tax Law for Free Zone-based enterprises revolves around the definition of “Qualifying Free Zone Persons”.

What are “Qualifying Free Zone Persons”?

According to Article 18 of the Corporate Tax Law, a “qualifying free zone person” is a free zone juridical person (FZC, FZE, etc.), who meets ALL of the following conditions:

1. Maintains adequate substance (of operations) in the State

2. Derives “Qualifying Income”

3. Has not elected to be subject to (regular) Corporate Tax, under Article 19 of the Corporate Tax Law

4. Maintains an arm’s length on all transactions with related parties

5. Maintains records on all transactions with related parties, including on transfer pricing

It is to be noted that the above set of tests to determine whether an entity qualifies as a “Qualifying Free Zone

Person” or not has to be performed for each tax period under consideration. The status of a free zone-based enterprise, as to whether or not they are a “Qualifying Free Zone Person”, can change from tax period to tax period, based on changing circumstances.

The above test is in addition to the “de-minimis” test to determine “Qualifying Free Zone Person” status, the latter which is discussed further below. In short, there are two tests to be performed each year to determine “Qualifying Free Zone Person” status, and the remainder of the tax treatment follows on from there.

What is the special corporate tax treatment given to “Qualifying Free Zone Persons”?

“Qualifying Income”, made through the performance of “Qualifying Activities” by “Qualifying Free Zone Persons”, will have their taxable income charged to Corporate Tax at the rate of zero per cent for the remainder of the tax incentive period, stipulated in the applicable legislation in their designated Free Zone. For example, this rate would apply for the remainder of the tax incentive period of 50 years in some free zones.

As an alternative, a Qualifying Free Zone Person can, as per Article 19 of the Corporate Tax Law, elect to have their entire taxable income subject to the standard Corporate Tax Rate of nine per cent on profits above AED 375,000.

What about free zone entities which do not or cannot qualify as “Qualifying

Free Zone Persons”?

Entities, juridical persons based out of free zones that do not qualify as “Qualifying Free Zone Persons”, will be treated as regular UAE-based juridical persons, and will have their taxable incomes above AED 375,000 subject to Corporate Tax at nine per cent.

What is “Qualifying Income”?

Cabinet Decision No. 55 of 2023, supplementing Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“the Corporate Tax Law”), defines qualifying income as income derived from “qualifying activities”.

What are “Qualifying Activities”?

As per Ministerial Decision No. 139 of 2023, supplementing Federal DecreeLaw No. 47 of 2022 on the Taxation of Corporations and Businesses (“the Corporate Tax Law”), the list of “qualifying activities” is as follows:

1. Manufacturing of goods or materials. The definition of “manufacturing” here can be taken to include “assembly” of goods from parts

2. Processing of goods or materials

3. Holding of shares and other securities

4. Ownership, management and operation of ships

5. Regulated reinsurance services

are the implications of the new tax regime for free zone companies and free zone entities in the country?

Krishnan Unni Madathil Auditor, Bin Khadim, Radha & Co Chartered Accountants, writes a bi-monthly macroanalysis on geopolitics, incumbent political structures, global business and finance exclusively for Climate Control Middle East He may be contacted at krishnan.madathil@binkhadimradha.com

6. Regulated fund management services

7. Regulated wealth and investment management services

8. Headquarter services to Related Parties (“Foreign Permanent Establishments”)

9. Treasury and Financing services to Related Parties (“Foreign Permanent Establishments”)

10. Financing and leasing of aircraft and aircraft parts

11. Distribution of goods or materials in/ from a designated zone to a non-final consumer customer

12. Logistics services

13. Ancillary activities related to the above

What are non-qualifying or “Excluded Activities”, and what is the corporate tax treatment for revenues from such activities?

Activities that are not “qualifying activities”, as listed above, are “excluded activities”, and these include:

1. Transactions with natural persons

2. Regulated banking activities

3. Regulated insurance activities

4. Finance and Leasing activities

5. Ownership and exploitation of immovable property, other than

free

6. Ownership and exploitation of IP assets

7. Ancillary activities related to the above

Since these “excluded activities” are, by definition, not “qualifying activities”, revenue from such “excluded activities” will be subject to corporate tax at nine per cent, without the AED 375,000 minimum threshold. That is, the whole amount from such activities will be subject to corporate tax at nine per cent.

What is the “de-minimis” test to determine whether “Qualifying Free Zone Persons” enjoy the benefits to the special corporate tax treatment for a particular tax period?

The lower of the following two conditions should be considered when assessing whether a Qualifying Free Zone Person can benefit from the special Corporate Tax treatment attributable to them in any particular tax period:

1. The ratio of revenue from nonqualifying or “excluded” activities, as a percentage of overall revenue (revenue from “excluded” activities, plus revenue

from “qualifying” activities) should not be greater than five per cent.

2. The revenue from non-qualifying or “excluded” activities should not be greater than AED 5,000,000.

For the purpose of computing the aforementioned de-minimis limits, revenue from Domestic Permanent Establishments (DPEs) or Foreign Permanent Establishments (FPEs) of the Qualifying Free Zone Person, will not be taken into consideration.

If the de-minimis requirements are not met, then the Free Zone Person will not be a “Qualifying Free Zone Person” for a period of a minimum of five years from the tax period in which the requirements were determined to not be met, and the taxable income will be subject to Corporate Tax as a regular juridical person in the UAE – that is, at nine per cent on all taxable income above AED 375,000.

CPI Industry accepts no liability for the views or opinions expressed in this column, or for the consequences of any actions taken on the basis of the information provided here.

THE IMPORTANCE OF STOCKTAKING

COP27, in 2022 in Egypt, wriggled itself out by agreeing to fund the developing countries from the impacts of climate change. The declaration of the ‘Loss and Damage Fund’ was more than enough for climate negotiators to hail COP27 a ‘success’. However, it is important to note that climate-history is replete with financial promises that have not seen the light of day. The media, generally speaking, perhaps missed noticing this point and joined the chorus with such headlines as ‘Breakthrough at COP27’.

I found the whole episode a tad odd, because climate negotiators as well as the media knew very well that the fund has been in discussion right from 1992, and got off the ground at COP19, in Warsaw.

Subsequent to the Sharm El-Sheikh declaration, representatives from 24 countries set out to work together well into 2023 to decide what form the fund should take, which countries should contribute, and where and how the money should be distributed. That was the happy ending of COP27 and the beginning of yet another entry in the list of funds for developing countries under the Climate treaties, which as I mentioned earlier, to date have not translated into significant amounts.

COP27 earned the moniker, ‘Loss and Damage COP’. COP28, in November 2023, in the UAE, is already being called as ‘Stocktaking-COP’. The dictionary meaning of stocktaking is the activity of counting the total supply of things that a shop or business has at a particular point in time. The meaning and purpose of global stocktaking – as included in Article 14 of the Paris Climate Agreement of 2015 – is ‘to assess the collective progress towards achieving the purpose

of this Agreement and its long-term goals’. As per the Agreement, the first ever global stocktake is scheduled to take place in 2023 – and every five years, thereafter. Before 2030, by which the global emissions need to be halved, there will be one more stocktaking in 2027, unless there are additional emergency stocktaking activities, which is very likely.

In brief, the stocktaking would include a clear status of climate actions by countries, in the context of the objective of the United Nations Convention on Climate Change (UNFCCC), adopted in 1992 in Rio de Janeiro. As set out in Article 2 of the Paris Climate Agreement, and by taking into account equity and the principle of common but differentiated responsibilities and respective capabilities, taking into consideration different national circumstances, the following would be the goals for stocktaking:

a) Holding the increase in the global average temperature to well below 2 degrees C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees C above pre-industrial levels

b) Increasing the ability to adapt to the adverse impacts of climate change and fostering climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production

c) Making finance flows to developing countries consistent with a pathway towards low greenhouse gas emissions and climate-resilient development

Specifically, the stocktaking would assess extent to which Parties have achieved individual Nationally Determined Contributions under Article 4; adaptation

actions under Article 7; good practices, priorities, needs and gaps in meeting targets of emissions; aggregate financial support to developing countries; and extent to which technology development and transfer for developing country Parties has been achieved.

The outcome of the global stocktake is expected to inform the Parties on updating and enhancing their NDCs (Nationally Determined Contribution), their actions and support in accordance with the relevant provisions of this Agreement, as well as in enhancing international cooperation for climate action.

To put it crudely, COP28 would be the exercise, exactly as per the dictionary meaning of stocktaking, viz to take inventory and ‘summon the supply’ of actions on finances, technology transfer, collaboration and sense of urgency in the ‘climate shop’. It has been decided that stocktaking would be a country-driven process, conducted in a democratic and transparent manner with the participation of civil society stakeholders, to make it inclusive. In my view, that line of thought and action perhaps needs to be carefully reviewed.

Since the adoption of UNFCCC, in 1992, the world has seen unabated

Dr Rajendra Shende is Former Director, UNEP; Coordinating Lead Author of IPCC-2007, which won the Nobel Peace Prize; and Founder Director, Green TERRE Foundation. He may be reached at shende. rajendra@gmail.com .

Assessment is a vital process, given the fact that climate-history is replete with financial promises that have not seen the light of day, says Dr Rajendra Shende, Former Director, UNEP

rise of global average temperature, greenhouse gas emissions and a large number of unfulfilled promises on financial assistance by developed countries to developing countries. Stocktaking would take place under the dark shadow of the shocking gross failure of humanity to act on the ‘climate-pandemic’.

The stocktaking of the consequences of our collective failure is also very evident. The past nine years have been the warmest since modern recordkeeping began in 1880. NASA scientists as well as international scientists determined that carbon dioxide emissions were the highest on record in 2022. NASA also identified some super emitters, mainly petrochemical refineries, of methane –another powerful greenhouse gas, using the Earth Surface Mineral Dust Source Investigation instrument that launched to the International Space Station, last year. The Arctic region continues to experience the strongest warming trends – close to four times the global average – according to research results presented at the 2022 annual meeting of the American Geophysical Union. Climate change has intensified rainfall and tropical storms, and deepened the

severity of droughts and their frequency, as evidenced in last year’s torrential monsoon that devastated Pakistan. In September 2022, Hurricane Ian became one of the strongest and costliest hurricanes to strike the continental United States. Drought, floods and heatwaves continue to affect food and health security in large parts of the world, and the related costs are rising.

The shock-taking that would have to be taken into account, while stocktaking, would include the following facts:

• Sea level and ocean heat are at record levels – and this trend will continue for many centuries

• Antarctic sea ice has fallen to the lowest extent on record

• Europe has shattered records for glacier-melt

Among the most vulnerable regions is the Middle East and North Africa (MENA) region. Indeed, the region’s water supplies and food production systems are frightening. The affluent Gulf nations face depleted freshwater resources within the next 50 years, while in conflictridden Iraq, average temperatures are soaring at a rate that is 2-7 times faster than the global average. Food and water production systems across the Levant

– the eastern part of the Mediterranean –face imminent collapse.

A simple stocktaking exercise at COP28, without a necessary shocktaking, would make it yet another meek COP. The need of the hour is to give teeth to the Paris Climate Agreement and make it accountable with appropriate punitive measures for non-performance. Agreeing to end fossil fuel subsidy and global phasedown of coal; making the ‘polluters to pay’ principle strong through taxes; and transforming global financial structural framework, as proposed in the June 2324 conference in Paris, would be the key climate actions needed. We need to fix the future of climate and agree to Globally Determined National Contributions (GDNCs), and not just NDCs. Peaking emissions by 2025, two years from now, halving them by 2030 and achieving net-zero by 2050 would need punitive and accountable actions for defaulters – the way we fervently undertook during COVID-19. Surely, climate change is a pandemic in waiting.

CPI Industry accepts no liability for the views or opinions expressed in this column, or for the consequences of any actions taken on the basis of the information provided here.

EDITORIAL CAMPAIGN Building Tracing & IEQ

‘HANG ON, HELP IS ON THE WAY!’

A pathway to better Indoor Air Quality is on its way, says Jeremy McDonald

SINCE the early days of the pandemic, HVAC professionals have been saying, “It’s all about the air.” While there has been an increase in awareness from public health officials of the importance of good IAQ in mitigating viral spread, in my estimation, the embrace of IAQ as a defense mechanism has been too slow in coming.

Recent events, though, give me hope that change is coming in the near future. Two events, in particular, are worthy of discussion.

On May 12, 2023, the Centers for Disease Control and Prevention (CDC) posted guidance that calls for a higher standard for IAQ. Highlights of the guidance include:

• Recommendation for at least five air changes per hour of clean air in occupied spaces

• Updated minimum filter recommendation to Minimum Efficiency Reporting Value (MERV) 13

• Information bulletin regarding maintenance and energy cost considerations for various ventilation strategies

While the guidance does not have the rule of law – only building code has the rule of law – the CDC has validated the fact that maintaining IAQ is an important part of public health.

Equally – or perhaps more – important was the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) publishing a draft standard for public review. The new standard, “Control of Infectious Aerosols – ASHRAE Standard 241” has been released.

The standard, once implemented, will for the first time establish minimum guidelines for control of infectious

aerosols, and also provide a roadmap for clients to meet those guidelines. Highlights of the draft standard include:

1. Minimum equivalent outdoor air for infection control rates –prescriptive rates. This guideline (cfm/person) establishes minimum airflow rates for infection control (that is, when owner or public health officials decides that we are at risk of infection). The airflow rates are quite high as compared to normal airflow rates, as would be expected. Also, it is important to emphasise that the equivalent outdoor rates include “normal” ventilation – vis-àvis outdoor air provided by an airhandling unit – as well as equivalent outdoor air, provided by an aircleaning device.

2. Arrangement for air inlets and outlets. This highlights the need for the HVAC designer to take into account the potential for short circuiting of supply to return air diffusers. This is an important factor in HVAC design and operation, since improperly placed supply and return diffusers will negate the dilution effectiveness of HVAC airflow distribution.

3. Mechanical ventilation guidance. The standard provides a calculation methodology for a variety of space types (single zone, multi-zone, 100% outdoor air systems and unventilated spaces). For recirculation of air, which is a major concern for infectious aerosol control, the standard specifies a 50% minimum efficiency for infectious aerosol removal or inactivation. For many systems

operating at minimum airflow, this will require either the use of an aircleaning device or a more elaborate filtration system.

4. Commissioning for infection control. The standard provides guidance for commissioning of Existing Buildings as well as New Construction. The proposed methodology follows the traditional Cx approach but with a focus on infection control. Key attributes of the guidance document include testing of various building management modifications for infection control mode, visual check of air filtration systems and confirmation of aircleaning technology functionality.

5. Roadmap for assessment, planning and implementation of IAQ for existing facilities. The roadmap gives guidance on how to evaluate existing buildings. The Building Readiness Plan (BRP) will provide the end-user an overall assessment of the building’s IAQ. Important factors, such as building controls, filtration levels and air-cleaning technologies are documented, so that the user has an assessment of the building’s state of readiness for an infectious aerosol event.

Jeremy McDonald is a Principal, Guth DeConzo Consulting Engineers, in New York. Before the pandemic, he was an adjunct professor at Rensselaer Polytechnic Institute. Recently, he was the technical consultant to the New York State Energy Research and Development Authority in development of an IAQ guideline for Higher Education in NY: “Covid-19 Response Guide, State University of New York”. He may be reached at jmcdonald@ guthdeconzo.com.

The standard also prescribes methods to measure outdoor air flow levels. Specifically, the standard requires a certified testing and balance report within the past 1.5 years, which I recommended similarly in a previous article, and/or calculations based on existing BMS or CO2 readings.

6. Procedure for measuring effectiveness and safety for filtration and air-cleaning technologies. The standard, for the first time, defines a universal laboratory testing standard for aircleaning devices – both within the room and duct-mounted systems. The test, conducted in a controlled environment, ensures that air-cleaning devices are tested per a common protocol. The test will be approved by an independent party, which will also have to be approved by the local authority having jurisdiction (that is, code official).

7. Operations and Maintenance guidance. Provides guidance to develop a Building Readiness Manual, which will be available on site. The manual should include:

Essential facility supplies: Filtration system inventory, belts, tools, etc. The guide specifies to ensure supplies for a period of three months – most likely in recognition of the supply shortage of filters we experienced in the early months of the pandemic.

Modes of operation: The manual should include an operating procedure for Normal Mode, Infection Risk Management Mode (IRMM) and Shutdown Mode (more definition for this mode will be forthcoming). Basically, this will allow operators to have guidance on what modifications need to be made when IRMM is dictated.

Facility operating schedule: Define guidance for various airflow control strategies, namely occupancy sensors and demand control ventilation for IRMM conditions.

Operator training: Give guidance

regarding IAQ training for systems operation (that is, simple test methods, filter ratings and their meaning, and ventilation requirements for various space types).

Minimum maintenance guidance for common equipment: The standard gives minimum inspection guidelines for equipment, such as airflow stations, filters and ventilation openings.

8. Systems Manual Guideline: The standard provides guidance regarding what information is relevant for a systems manual, which will be very useful when infectious aerosols are a concern. Information such as equipment inventory, airflow quantities by space, filtration equipment, air cleaning equipment and expected outcomes and troubleshooting guidance will assist facility operators when the information is needed for a crisis event.

The listing of items, above, constitutes a brief overview of the standard. Please note that the 39-page standard has a lot of complexities

which are very much generalised for the purpose of writing this article.

In summary, the standard is an excellent first draft of what a healthy IAQ future will look like. I commend the ASHRAE team members for their hard work and attention to “lessons learnt” from the pandemic. It is clear that there was a lot of thought put into the standard, and we will all benefit from improved IAQ, both in our day-to-day lives, and when we next need to confront a challenging infectious aerosol event.

A closing note: About two years into the pandemic, I was having a conversation with a high-ranking public official at the state level. We both shared our concern that the hard lessons we learnt from the pandemic, namely the importance of IAQ, would be soon forgotten once the pandemic receded. With the CDC statement and ASHRAE’s new infectious control standard, I am confident that the painful lessons from the pandemic will be incorporated into new preventative maintenance practices, which will benefit generations for years to come.

CPI Industry accepts no liability for the views or opinions expressed in this column, or for the consequences of any actions taken on the basis of the information provided here.

LICENCE TO CHILL

Chilled Water Systems

HOW TO CALCULATE AIRCOOLED CHILLER CONDENSER DISCHARGE AIR RECIRCULATION

Recirculation, among other ill-effects, increases the condensing temperature and pressures as well as suction pressures, causing compressors to work harder, thus decreasing their reliability, says Dan

ON MANY occasions, I find myself in meetings with energy companies, and they tell me they think the chiller is recirculating hot discharge air back into the condensers. I ask them, “Well, what percentage of air is recirculating, and I get a blank stare 100% of the time.

With that lingering image in mind, I am now going to explain a simple way to determine the amount of recirculation, so we can take the guess work out of this.

But, before I explain how to calculate the recirculation percentage, it is important to understand the ill-effects of condenser air recirculation. First and foremost, the way an air-cooled chiller is

Mizesko

installed can cause hot discharge air to circulate from the exit of the condenser fans back to the intake of the condenser coil. The hot recirculated air has little to any cooling capacity, so the recirculation reduces the capacity (tonnage) of the chiller. Second, it increases the condensing temperature and pressures as well as suction pressures, causing compressors to work harder, thus decreasing their reliability. The chiller’s ability to sub-cool liquid refrigerant will also be affected, causing excessive superheating of the compressor suction line as well as lack of refrigerant liquid cooling at the compressor; so, all in all, hot air recirculation should be avoided at any cost.

Now, let’s see how we calculate an air-cooled chiller’s hot air recirculation rate. The air temperature at the inlet of the condenser section should be the same as the ambient air temperature away from the chiller. If the condenser air intake is warmer than the ambient air away from the chiller, there is some amount of hot air recirculation occurring. The formula, below, will give you the percentage of hot air recirculated back into the condenser.

To estimate the amount of recirculation, all you need is an accurate thermometer – F or C degrees is fine –and use the following formula below.

After you have determined the percentage of hot discharge recirculation, you are going to have to determine the cause, which could be many, and get it corrected, as any hot air recirculation is wasting energy and causing chiller damage.

Dan Mizesko is Managing Partner/ President, U.S. Chiller Services International. He may be contacted at dmizesko@uscsny.com

D E C O D I N G

PERFORMANCE IN HVACR

Demand for high-quality ESG reporting by investors has risen significantly

AS THE world grapples with the urgent need to combat climate change, industries that play a fundamental role in climate change mitigation face a pivotal challenge – of how to balance commercial interests with environmental and social impact, says Tuna Gulenc, Vice President at Daikin Middle East and Africa. In this context, he adds, sustainability efforts emerge as a crucial pathway towards

Rohan Chopra

Tuna Gulenc

Asim Ahmad Hashmi

COVER STORY ESCOs

achieving long-term sustainability goals. Gulenc says that by shifting the focus from purely commercial interests to a broader perspective that prioritises environmental responsibility, industries can drive significant change and contribute to a more sustainable future.

The Middle East region, Gulenc says, has witnessed a growing recognition of the significance of Environmental, Social, and Governance (ESG) in recent years, driven by a confluence of factors, including ambitious net-zero targets and an increasing emphasis on social responsibility. He says, “With countries in the region actively implementing strategies to transition towards cleaner, sustainable economies and achieve their net-zero objectives, businesses are now expected to prioritise ESG considerations as a crucial aspect of their operations.” This paradigm shift, Gulenc says, reflects the region’s commitment to addressing pressing environmental and social challenges while fostering responsible and sustainable business practices.

In addition to sustainability efforts, Gulenc says, the Middle East region is witnessing an increasing emphasis on social responsibility and community development. “This shift is compelling companies to address social issues and make positive contributions to society,” he says, “Strong governance is important to ensure transparency, ethical behaviour and accountability, enabling companies to build trust and confidence among stakeholders.”

Weighing in, Asim Ahmad Hashmi, Sales Director - Applied Business, SKM Air Conditioning Equipment, points out the significance of de-commercialisation in sustainability initiatives and says consultants and designers have a crucial role to play. He says: “Consultants or designers must put specifications to meet the sustainability standards. In this way, HVAC suppliers can be brought to the same page, and it will be delinked with the price; otherwise, commercial aspects will remain the central figure in the sustainability efforts.” For the Social side, Hashmi adds, companies are offering internships to students from local universities as well as offering

upskilling opportunities to the workforce. Hashmi also touches upon the aspect of Governance and says most companies strictly follow a code of ethics, conduct employee surveys, and have incentives and bonus policies in place. “Employees and Management meet every quarter to review performance and take corrective actions,” he says.

Joining the conversation, Rohan Chopra, Director – Sustainable Infrastructure, Middle East & Africa, Johnson Controls, says there is no doubt that sustainability is a matter of immediate action, and organisations need to have subjectmatter experts or specialist partners to guide them, develop roadmaps and manage deliverables to achieve their sustainability ambitions. Moreover, he adds, organisations need to recognise the importance of transparency and follow globally or regionally recognised reporting frameworks to maintain credibility. For instance, he says, Johnson Controls reports in accordance with Global Reporting Index (GRI), Task Force on Climate-related Financial Disclosures (TCFD), the UN Global Compact, and Carbon Disclosure Project (CDP). Chopra also underlines the importance of support from the stakeholders, including suppliers and customers, in sustainability efforts. He says: “We see immense support from our stakeholders to implement

decarbonisation strategies, including demand-side management solutions and electrification solutions to reduce their Scope 1 and 2 emissions. Additionally, we use digitalisation as an enabler to facilitate the sustainability journey and track their operational carbon footprint on the way.”

Gulenc, echoing Chopra’s opinion, says it is important to establish goals aligned with international standards and best practices, which will, in turn, guide the actions and provide a framework for measuring and reporting progress. “Regular publication of comprehensive sustainability reports and following recognised frameworks, like the Global Reporting Initiative (GRI), ensures transparency and accountability,” he says. Elaborating on the topic, Gulenc says Daikin has been

AS THE IMPORTANCE OF ESG FACTORS IN INVESTMENT DECISIONS CONTINUES TO GROW, ASSESSING AND BENCHMARKING ESG PERFORMANCE CONSTITUTE FORMIDABLE CHALLENGES

prioritising innovations in HVACR, which will minimise environmental impact right from the first stage of product development, and uses a third-party verification method to verify its data on greenhouse gas emissions, water use, waste emissions, and chemical substances. “This verification process adds credibility, assuring stakeholders of the accuracy of our claims,” Gulenc says. In addition to this, Gulenc underlines the importance of engaging with all the stakeholders and says that through listening to the needs and expectations of its customers, employees or investors, Daikin aligns its sustainability strategies with its concerns and ensures that its actions address real-world challenges.

For his part, on how companies in the region are ensuring transparency and

consistency in their sustainability efforts, Hashmi says that commercial interest drives companies, and price remains a crucial factor in high-efficiency products. End-users may not be ready to bear the high costs, though, he says. Therefore, adequate government policies, he says, are a must for ensuring consistency in sustainability efforts. Hashmi says: “I believe that companies are genuinely committed to green investments, though it depends ultimately on end-users. In my opinion, end-users and governments are the real drivers of sustainability and green investments, as HVAC companies are commercial organisations, which work based on the customer’s demand.”

Green investments, Gulenc says, help companies to appeal to socially conscious investors and consumers, as well as to showcase the strategic

shift towards environmentally conscious business models. Moving forward, Gulenc adds that ESG scores are an important parameter and provide a comprehensive assessment of the company’s environmental, social and governance performance. He says: “These scores serve as a reliable measure of sustainability performance and long-term value-creation potential for investors, customers and stakeholders. It is essential to prioritise ESG factors sincerely, dedicated to creating a better future for people and the planet beyond financial motives.”

Gulenc says, “Aligning sustainability goals with business objectives makes it a strategic imperative and driver of innovation for long-term success.” To achieve this, he says, companies should develop sustainable products that meet

customer and societal needs, as well as invest in research and development to improve energy efficiency and reduce environmental impact. “Moreover, companies should engage with employees, and partner and collaborate with stakeholders to address challenges associated with sustainability and ensure the longevity of their efforts,” he says.

Adding to Gulenc’s thoughts on how companies in the region leverage ESG principles to gain recognition from investment firms, equity funds or governments, Chopra says demand for high-quality ESG reporting by investors has grown significantly in the last few years to make informed decisions and to identify potential opportunities as well as risks. He says that regional players can attract investment opportunities from potential funding organisations by maintaining transparency and reporting their ESG/Sustainability disclosures through credible frameworks, like GRI, CDP and Sustainable Accounting Standards Board (SASB). Furthermore, he underlines the importance of acting on climate change solutions, ensuring a safe and healthy working environment, maintaining a culture of diversity and inclusion, linking executive compensation to sustainability and diversity goals, and transparency in reporting climate risks to gain the trust of equity funds and investment firms.

As the importance of ESG factors in investment decisions continues to grow, assessing and benchmarking ESG performance constitute formidable challenges. However, in order to achieve more objective, transparent and internationally recognised standards for evaluating sustainability efforts, the region must address these hurdles head-on. Gulenc says that assessing and benchmarking ESG performance can be challenging due to the lack of standardised metrics and subjective interpretation of criteria. At Daikin, he adds, the company recognises the importance of objective, transparent and internationally recognised standards for evaluating sustainability efforts and actively engages in sustainability dialogues to shape the discourse around ESG performance evaluation.

Fostering sustainable practices: The Role of Government in the GCC Region

Amid the growing urgency to address environmental challenges, the role of government in promoting sustainability and aligning the efforts of companies in the GCC region has gained significant prominence. By implementing effective policies and regulations, governments are providing crucial support to facilitate the transition towards more sustainable practices, ensuring the long-term success of sustainability initiatives.

In the GCC region countries, Hashmi says, there are standards followed by respective governments, namely the Saudi Standards, Metrology and Quality Organization (SASO) certification in Saudi Arabia and the Emirates Authority for Standardization and Metrology (ESMA) certification in the UAE, to have comprehensive benchmarking of ESG scores. “Moreover, suppliers, contractors and manufacturers should get the benefit of scoring high on ESG, as they get for In-Country Value (ICV) with ADNOC and some other organisations,” he adds.

Hashmi says that besides the energy standards that are aligned to sustainability efforts, there should be a clear policy for the use of refrigerants, safety standards for handling inflammable refrigerants, employee satisfaction score, diversity

in the workforce, employee health benefits, support to local industries and universities and in-country value.

Joining the discussion, Chopra says the governments of the GCC region countries are committed to sustainability and have announced net-zero goals. However, Chopra adds, an accelerated approach towards net-zero will need substantial involvement of the private sector, effectively a collaborative effort between the private and the public sector. He says: “Now, there is a particular focus on the public sector, with a key emphasis on the adoption of renewables by utility providers in these countries. Additionally, the private sector requires a push to embrace more sustainable practices in its day-today operations. This can be facilitated through various government initiatives, such as removing subsidies from energy tariffs, mandating the implementation of demand-side management solutions and embracing on-site energy generation, among others.”

Gulenc also shares a similar perspective as Hashmi and Chopra and thinks that the role of the government is paramount in promoting sustainability and aligning the efforts of companies in the GCC region. In the Middle East region, Gulenc says, the governments have recognised the importance of sustainability and are actively implementing policies and regulations to support the transition towards more sustainable practices. “For example, the UAE Green Agenda 2015-2030 and the Dubai Clean Energy Strategy 2050 provide a clear roadmap for companies to follow in their sustainability efforts, he says. He further points out that the governments of the GCC region countries also offer incentives to encourage businesses to adopt sustainable practices, such as renewable energy feed-in tariffs and green building certifications. “By leveraging these supportive policies and regulations,” he says, “companies like Daikin can accelerate their sustainability initiatives, contribute to national sustainability targets and ensure the long-term success of their sustainability efforts in the GCC region.”

MOREOVER, SUPPLIERS, CONTRACTORS AND MANUFACTURERS SHOULD GET THE BENEFIT OF SCORING HIGH ON ESG, AS THEY GET FOR IN-COUNTRY VALUE (ICV) WITH ADNOC AND SOME OTHER ORGANISATIONS

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ACCESSORISE AT WILL

ACCESSORISE AT WILL

New opportunities beckon the HVACR accessories market in a shifting landscape, says Indu Revikumar, Features Writer, Climate Control Middle East

IN THE wake of the pandemic, the HVACR market is undergoing a significant evolution, driven by shifting customer and stakeholder preferences. The change presents new opportunities for businesses, including for the HVACR accessories sector of the industry. Manufacturers of HVACR accessories are adapting to the shifting landscape by employing strategic approaches to gain a competitive advantage in the GCC region.

According to a research report published by Expert Market Research, the key drivers of the HVACR industry include the rising application of HVAC systems in buildings, the expanding construction sector, the growing need to ventilate residential structures, and

rapid industrialisation and urbanisation. Shailesh Lavnis, Regional Key Account Manager - Middle East & Egypt, Sanhua International Europe, says the postpandemic phase saw a significant surge in demand for HVACR accessories, as economies were recovering in the GCC region. He adds, “The approximate size of the region’s HVACR accessories (excluding compressors) market in the GCC region is around USD 10 million, and two-thirds of the market is focused on Saudi Arabia and the UAE in the GCC region.” Elaborating, Lavnis says that as the market faced challenges in 2022, due to supply chain disruptions, material availability became an important differentiator. He adds that many companies, including Sanhua, addressed the surge in demand with standard lead time and turned this into an opportunity to acquire new customers and markets. He adds that the crisis also created opportunities to introduce new technologies, such as Electronic Expansion Valve (EEV) kits, which could significantly impact energy-efficiency efforts in new markets and territories.

Weighing in, Salah Abdelghany –General Manager, Castel Gulf, says the HVACR industry in the GCC region is on an upsurge, and it can be attributed to the new developments and expansion plans that come on the sidelines of strategic initiatives such as Saudi Vision 2030 and Dubai 2040. Abdelghany also agrees with Lavnis on the spike in demand for HVACR accessories. He says that Castel has noticed a huge demand for accessories, on the back of an immediate return to the economic situation, as was during the pre-pandemic days, or even better Abdelghany points out that one of the most significant changes has to do with the use of new natural refrigerants, which has meant substituting some of the traditional mechanical valves with electronic ones to guarantee energy saving and clean ambience. “We at Castel have introduced some solutions to the market and conducted seminars to introduce electronic components, which are suitable for new refrigerants, HFO and CO2 that guarantee better performance and impressive energy efficiency.”

In the UAE, Saudi Arabia and the rest of the countries in the GCC region, the growth of HVACR accessories is

propelled by several factors. Moreover, the new major projects in the GCC region are also likely to create a spike in the demand for HVACR accessories. Lavnis says the commercial and residential projects within the giga projects in Saudi Arabia are significantly contributing to the rise in demand for HVACR accessories.

“In the rest of the GCC region countries, various factors drive growth, such as residential projects in Kuwait, and commercial, refrigeration and retrofit projects in the UAE and Qatar, among others,” he says.

For his part, Abdelghany says, investments in the real estate sector, aimed at attracting foreign investors and international industrial companies with local production, have led to an increase in demand for HVACR components. This upward trend, he adds, has prompted companies like Castel to invest in the region by establishing their commercial branch with local stock in the Free Zone “This strategic move ensures a high level of service and support for the entire region,” he says.

Moving forward, Abdelghany says manufacturers of HVACR accessories are keen to introduce new products and solutions to meet the demand for energy-efficient products. Adding to the discussion, Lavnis says countries in the GCC region are increasingly adopting environmentally friendly solutions, such as Greentech components, natural refrigerants, like R290 and CO2, or AC systems with inverter technology. “This is also in response to regional regulations aimed at reducing carbon footprint, energy consumption and increasing system efficiency,” he says.

Abdelghany adds that the highly competitive nature of the market also calls for products that are high in quality and meet local regulatory requirements and standards. He emphasises that all products at Castel go through several tests during the production stage to ensure their quality. Joining the discussion, Lavnis mentions that international and domestic safety certificates, such as CQC, CE, TüV, UL and VDE, and certifications by regulatory bodies like Saudi Standards, Metrology and Quality Organization (SASO), and the Emirates Authority for Standardization and Metrology (ESMA) are in place to ensure the quality of HVACR accessories.

Though the HVACR accessories market is on an upward surge, the market also faces challenges ranging from cash flow issues to workforce concerns and supply chain disruptions. Lavnis says cash flow issues are negatively affecting all stakeholders, resulting in delays in project completion and further disruptions. “There has been a slowdown observed since the beginning of 2023, as the market stabilises from the surge of 2022, and I believe that low demand and cash flow issues will continue to affect the market in 2023,” he says. To tackle this issue, he emphasises the importance of ensuring the fastest lead time, reasonable price stability and offering payment plans to partner, resulting in closer partnerships and brand loyalty.

Weighing in, Abdelghany says the HVACR accessories market also faces challenges in terms of a lack of awareness of new technologies among installers. These need to be addressed on an urgent basis for manufacturers to exploit the opportunities that are emerging and evolving in the landscape.

Salah Abdelghany

Shailesh Lavnis

REFCOLD TO SPOTLIGHT FOOD LOSS AND REMEDIAL MEASURES

ISHRAE-hosted exhibition will cover sectors such as cold storage and equipment, cold transportation and equipment, cold chain services and industrial refrigeration

By Indu Revikumar, Features Writer, Climate Control Middle East (with inputs from Surendar Balakrishnan, Editor, Climate Control Middle East)

IN ANYTHING we talk about regarding human sustenance, refrigeration is a very basic requirement, says Raja M Sriraam, Chairman, 6th Edition of REFCOLD India, from October 12 to 14, in Chennai, India.

The HVAC industry primarily focuses on providing human comfort, he says. The refrigeration

industry is an essential one that operates continuously – 24/7, he says. Unfortunately, he adds, it often goes unnoticed and is taken for granted. Indeed, the upliftment and improvement of the refrigeration industry are overlooked by many, he further adds. Realising this, Sriraam says, the Indian Society of Heating, Refrigerating and Air Conditioning

Engineers (ISHARE) launched REFCOLD – a refrigeration cold chain exhibition, which amongst other aspects, focuses on cutting down food loss, a direct result of lack of proper storage facilities. In Sriraam’s estimate , the food loss is anywhere between 12% and 20% of the total produce.

The 6th edition of REFCOLD India will cover sectors such as cold storage

and equipment, cold transportation and equipment, cold chain services and industrial refrigeration, Sriraam says. It will also focus on innovations and advancements in refrigeration and cold chain technologies, he says. Moreover, it will offer a platform for expanding and enhancing the cold chain business across major industries in India, utilising refrigeration and cold chain technologies, he says.

It is pertinent to note that the cold chain industry in India, referred to as the Sunrise Sector due to its growing indispensability and potential, reached INR 1,814.9 billion (approximately USD 22.1 billion) in 2022 and is exhibiting a CAGR of 12.3% during 2023-2028, as per a report by International Market Analysis Research and Consulting Group. Sriraam says: “India is primarily an agricultural country with abundant farming resources. We also have a significant marine food industry. And India is one of the biggest exporters of shrimp to China and the US.” In this scenario, he adds , it is crucial to understand the significance of refrigeration facilities and their role in reducing the amount of food waste , decarbonisation and reducing the use of electricity during the storage process. “These advancements,” he says, “will, in effect, ensure that more people can access food at the same cost of production.”

Sriraam says REFCOLD aims to bring together participants from various sectors, including the healthcare industry, ice cream manufacturers and dairy producers. He particularly highlights the importance of the medical segment, where refrigeration technologies play a crucial role in storing blood, plasma and vaccines, and in IVF treatment.

Joining the conversation and building upon Sriraam’s statement, Ajit Pandalai, Co-Chairman, 6th Edition of REFCOLD India, says that while air conditioning primarily focusses on offering comfort, refrigeration revolves around the concept of preservation; it plays a central role in terms of saving resources and reducing waste. Interestingly, Pandalai adds

that each application comes with a specific set of requirements; for instance, seafood, dairy, agriculture or ice cream necessitates different temperature conditions. “Therefore, we are keen on ensuring that stakeholders from different segments attend the exhibition, so that they will get a wider understanding of the latest available products and technologies,” he says.

Sriraam, addressing the infrastructure requirements in a country like India, speaks on the importance of taking into account factors such as road connectivity, availability and the quality of power; transport refrigeration and the challenges faced in maintaining temperature control during transportation; and the need for a holistic approach to refrigeration that goes beyond technology, which would enable India to utilise its capabilities fully. To illustrate his point, Sriraam says certain products have specific temperature requirements, and this aspect is often taken for granted. “Grains are assumed to be resistant to spoilage,” he says. “However, loss happens due to a lack of knowledge among end users.” He further says this also happens in regions where electricity is scarce. One of the ways to tackle the problem is by giving solar-powered facilities for immediate storage of the product after harvest to help reduce losses, he adds.

Sriraam, emphasising the importance of transport refrigeration, says it plays a significant role, as

it is crucial in preventing products from getting exposed to temperature fluctuations, once refrigerated. He adds that lack of awareness is contributing to products that require specific temperature maintenance getting exposed to heat during transit, which results in deterioration of their quality.

Sriraam, pointing to Europe, speaks of how the continent has a system of using specialised refrigeration systems that are specifically designed for certain products. “For instance, separate refrigeration units, such as Frigidaire 18, are dedicated to storing apples, cheese or other items, and these kinds of controlled atmosphere storage units are used to extend the shelf life of these products,” he says. On the other hand, he says, local shops in countries like India commonly have a single refrigerator housing milk, ice cream, meat and fruit, which may lead to their decay. In such a scenario, Sriraam says, characterised by a lack of knowledge or implementation, there is a need for education and awareness about refrigeration practices. “Technical workshops and training sessions can bridge the knowledge gap, providing detailed information on refrigeration types, temperature requirements and other intricacies,” he says. Bridging the gap through increased awareness and a better understanding of the industry, he says, will bring positive changes, especially in reducing carbon emissions, resulting from inefficient refrigeration practices.

Ajit Pandalai

Raja M Sriraam

DRIVING THE COLD CHAIN FOOD SAFETY NARRATIVE

The 11th Edition of the Middle East Cold Chain Food Safety Conference (Food Chain) spotlights the Dubai Food Code 2.0 and provides a platform for perspectives from Arabian Farms, Barakat and Lulu, among others. Indu Revikumar, Features Writer, Climate Control Middle East, has the story…

THE 11th edition of Food Chain (the Middle East Cold Chain Food Safety Conference), on June 15 in Dubai, spotlighted the Dubai Food Code 2.0, and enabled a collective expression of intent from government agencies, private sector enterprises, food establishments, digital technology providers and consultants. The conference witnessed insightful discussions around the latest advancements, crucial for the smooth and efficient operations of the food hygiene management and cold chain industries. It also emphasised the importance of better collaboration among stakeholders.

Brent Melvin, CEO, AI Driving Metaverse Group, and Chairperson of the conference, opened the floor to discussions that underlined the significance of collaboration among private sector enterprises, government

agencies and industry professionals in ensuring the smooth and efficient flow of food from farm to table. The cold chain industry has experienced tremendous growth in recent years, Melvin said, thanks to innovation and technological advancements.

“We have witnessed incredible developments in the utilisation of artificial intelligence and other cuttingedge technologies in transportation, warehousing, logistics processing and processes,” he said. “AI-powered systems have revolutionised the

Dr Suheel Ahmed

monitoring and management of temperature-sensitive products, ensuring quality and safety throughout the supply chain. Furthermore, integrating advanced sensors and real-time data has enhanced the efficiency and reliability of trucks,

warehouses, supermarkets and other critical components of cold chain infrastructure.”

During his opening remarks, Melvin also emphasised consumers’ high expectations in today’s fastpaced world and the emergence of

the UAE and the Middle East region as vibrant and dynamic markets. He stated that the diverse and multicultural population in the Middle East region demands a wide range of products, and the UAE serves as a global hub for trade and commerce, due to its commitment to innovation and infrastructure development. Furthermore, Melvin underlined the importance of sustainability, food security and the urgent need to address the issue of food waste. He concluded his speech by pointing out that the UAE places a strong emphasis on quality and recognises the need for collaboration and dialogue to create a more sustainable and resilient future for the food industry.

Bobby Krishna T M, Senior Specialist, Food Permits and Applied Nutrition Section, Dubai Municipality, spoke after Brent Melvin and shared an overview of Food Code 2.0 in

Mohammed Qadri

Bobby Krishna TM

Brent Melvin

COVER POST-EVENTSTORYREPORT

his keynote address. He discussed several highlights of Food Code 2.0 in detail, which include:

1. New requirements for food safety management certification

2. Enhanced training programmes, and performance monitoring of training centres

3. New requirements for food transportation vehicles

4. More than 150 updated standards

5. Regulation on trans-fatty acids

Krishna began his speech by mentioning the introduction of the Food Code in 2013, which was a significant step towards establishing food safety regulations. Krishna then discussed in detail the new standards and requirements in Dubai Food Code 2.0 and emphasised their importance in the food industry and their role in driving its future. He highlighted the changes that have occurred between the two versions of the Food Code and highlighted the need to go beyond addressing current issues and to focus on preparing for the future.

Krishna also discussed the use of data in shaping the Food Code and said that the various data sets, namely food sample collection, testing, and reporting outbreaks and information on food imports are considered. Incorporating data from multiple sources is essential to have a comprehensive understanding of the industry, he said. There will be changes in licensing and processes, Krishna said, particularly with regard to the shift towards digitalisation and digital competency among the stakeholders in the food industry. He said data should not just be recorded but can be utilised to make better decisions to drive the food safety culture. In addition, Krishna underlined the importance of training and emphasised the need for ongoing education and the utilisation of e-learning modules, as they are important not just for demonstrating skills but also for putting data to

the best use in decision-making processes.

Krishna also emphasised the importance of allergen management, considering the increasing number of people with allergies, particularly in relation to popular food items, such as sushi. He mentioned the existence of new guidelines for novel foods and processes, such as cellbased meat, and highlighted changes occurring in food processing methods, including smoking and hydroponics. Additionally, he discussed changes in inspection approaches, noting that businesses are expected to achieve higher levels of maturity in food safety management. Krishna concluded his address by emphasising the significance of utilising data in food safety management systems, enhancing competency, and embracing a food safety culture to ensure food quality and authenticity. In summary, his speech provided an overview of Food Code 2.0 and stressed the need for continuous improvement and the utilisation of data to forecast and predict future trends in the industry.

While Krishna touched on the significance of data in driving the future of the food industry, Brent Melvin, giving a Special Address, discussed the indispensability of Artificial Intelligence (AI) and its role in logistics and supply chain management. In his detailed presentation, Melvin highlighted

the benefits of AI and how it can improve various aspects of business operations. He also acknowledged that AI can be a sensitive topic and carries risks in its use and development. However, he emphasised the importance of focusing on the positive aspects and recognising the potential for AI to revolutionise industries.

Melvin emphasised the importance of AI in demand forecasting and inventory management, highlighting its ability to predict demand and optimise inventory levels accurately. Additionally, he discussed how AI can enhance warehouse operations by increasing accuracy and efficiency, reducing complexities, and minimising errors in receiving and stock management. In his address, Melvin also explored how AI can be leveraged in data analysis and decisionmaking, stating that visibility and real-time tracking are critical factors in logistics. He also discussed the significant role AI can play in providing better insights and data analysis to facilitate improved decision-making. Furthermore, Melvin mentioned the use of telematics and the Internet of Things in monitoring temperature, location and other conditions in supply chain operations, enabling proactive actions to prevent issues such as food waste.

Elaborating on the importance of AI in supply chain management, Melvin emphasised its potential impact on

Prapthi Rai

optimising routes, improving delivery efficiency and enhancing customer experience. He also mentioned how AI can be used to enhance lastmile delivery and communicate with customers through chatbots. Furthermore, Melvin highlighted that AI has the potential to extend its benefits to predictive maintenance, risk management, fraud detection and data-driven decision-making.

During his address, Melvin also encouraged businesses to embrace AI and leverage its potential benefits. He emphasised the importance of understanding the fundamentals of AI and of engaging with experts to implement AI strategies effectively. However, he also discussed the challenges and limitations associated

with AI, including infrastructure costs, data quality concerns and privacy considerations.

Subsequent to Melvin’s address, Mohammed Qadri, Regional Sales Manager-IR/FR MENA, Danfoss FZCO, made a technical presentation, in which he discussed in detail Danfoss’ focus on sustainability and its efforts to reduce CO2 emissions by promoting energy-efficient solutions, utilising renewable energy sources, such as solar panels, and working with natural refrigerants to combat global warming. Furthermore, he said that Danfoss aims to contribute to a greener future by reducing energy consumption, minimising waste and providing sustainable solutions in the food supply chain.

Qadri’s presentation gave the audience an overview of Danfoss’s sustainability and energy efficiency efforts. He mentioned that Danfoss promotes the use of advanced technologies, such as inverter compressors and electronic expansion valves, to reduce power consumption in refrigeration systems. Additionally, he said that the company offers monitoring and management solutions through its System Manager device, which can analyse data from various components and optimise system performance. Qadri also highlighted how retrofitting existing systems with energy-efficient components can lead to significant energy savings. Furthermore, he discussed the durability of inverter compressors, which have a longer lifespan compared to traditional compressors. He said: “Inverter compressors operate at varying speeds based on the cooling requirements, resulting in less wear and tear. However, when retrofitting to inverter compressors, it is essential to consider other system components, such as expansion valves and condenser fans, to ensure compatibility and maximise efficiency.”

The latter half of the conference focused on end-user perspectives on food safety and what they expected out of cold chain technology providers. It featured presentations by Dr Suheel Ahmed, CEO, Arabian Farms (Al Saha eggs); Prapthi Rai, Head of Quality & Strategic Initiatives, Barakat Group; and Bjorn Ostbye, Project Development Manager, Lulu Group International.

Dr Ahmed, speaking first, shared insights about the poultry industry in the region and globally, along with the challenges it has witnessed over the years. He stated that the demand for food, including protein, a crucial diet component, has been growing rapidly due to the increasing global population, projected to reach 9.7 billion by 2050. He said: “The poultry industry has undergone significant

Bjorn Ostbye

Surendar Balakrishnan, Co-Founder & Editorial Director, CPI Industry, gives the Welcome Address

COVER POST-EVENTSTORYREPORT

changes and advancements to meet the demands of the growing population and address the challenges in terms of food production. The industry has evolved into a multibillion-dollar sector and has become the top consuming protein source worldwide, surpassing pork consumption.”

He said advancements in technology and production techniques have played a crucial role in the industry’s growth. For instance, the breeding of chickens has focused on improving productivity and increasing the number of chickens produced. Housing systems have also been developed to accommodate more chickens, ranging from cages to free-range and to barn systems. Furthermore, he emphasised the importance of healthcare, disease management and processing techniques, which are essential factors in increasing efficiency and reducing

waste. Additionally, transport and logistics play a vital role in ensuring the quality and freshness of poultry products during their transportation from farms to consumers, he said.

Ahmed said that customer preferences and market demands have also influenced the poultry industry. He said: “Consumers are becoming more conscious of factors such as freshness, taste, appearance and welfare standards of the poultry products they consume. Moreover, there is a growing trend of online shopping and a preference for fresh and locally sourced products.”

Ahmed also touched on the challenges faced by the poultry industry, including maintaining food safety and quality standards, meeting the diverse demands of consumers, ensuring sustainability and environmental protection, and addressing issues of food security and affordability. However, he mentioned

that there are also opportunities for growth and innovation in the industry, such as adopting robotics and automation, the development of new product ranges, and catering to the rising demand for packaged and value-added poultry products.

Speaking after Ahmed, Rai, in her presentation, focused on a sustainable food cold chain. She highlighted the statistics that indicate a significant portion of food is lost or wasted, contributing not only to food waste but also to carbon emissions. She said, “The numbers are staggering, with 526 million tonnes of food waste, which could feed nearly one billion people, while 811 million people go hungry, and three billion people cannot afford a healthy diet.” She also underlined that these alarming figures raise questions about waste management and the need to reduce food waste.

Further, she discussed Barakat’s

Frédéric Paillé, Co-Founder & Commercial Director, CPI Industry, gives the closing remarks

Frédéric Paillé (L) with Sponsors and Strategic Knowledge Partners during the Sponsor Recognition Ceremony

transformation into a platform offering value-added products and how the organisation tackled the challenges posed by the pandemic through innovative solutions. She said: “Initially, we relied heavily on imported products, and the share of locally sourced products was only 11%. However, with the support of the local agricultural unit, the Municipality and government ministers, we have increased the percentage of locally grown products to 26%.” She added that this shift has allowed Barakat to reduce its carbon footprint, enhance its products’ freshness and shelf life, and support local farmers. She also underlined the importance of working closely with farmers to align their production with consumer demands and ensure the quality of end products. “By analysing consumer patterns and market requirements, we have been able to guide farmers in growing the right products,” she

said. “This approach has resulted in success stories, like locally grown strawberries that rival the quality of imported varieties.”

Rai’s presentation also underlined the importance of maintaining temperature levels throughout production and transportation and its crucial role in ensuring product quality and reducing waste. She said: “Barakat has implemented cold chain management systems to monitor temperatures and closely address deviations. The use of technology, such as Supervisory Control and Data Acquisition (SCADA) systems and sensors in delivery trucks, enables us to maintain optimal conditions and prevent product spoilage.”

In her presentation, Rai highlighted the significance of a sustainable food cold chain. She also touched upon the transformation of unused desert lands into state-of-the-art agricultural facilities. She discussed

hydroponics and smart systems, which reduce water consumption by up to 40%. Her presentation also highlighted data-driven approaches to tracking carbon footprints, such as providing customers with invoices that show their reduction in miles and carbon emissions. Additionally, Rai emphasised the importance of coaching in ensuring a sustainable food chain, promoting food safety and environmental responsibility.

The last speaker for the day was Bjorn Ostbye, and his presentation addressed the key issues and challenges in the various touchpoints of the cold chain. He discussed in detail the cold chain in Lulu Group as well as the organisation’s expansion strategies. In particular, he discussed the importance of investing in the right equipment, retrofitting existing equipment and replacing old refrigerants with new, environmentally friendly ones.

Members of the audience

During the Q&A Session

SKM conducts HVAC seminar in Riyadh

Company declares the event’s objective as wanting to showcase its capabilities and product range, moving in the direction of inverterisation

By CCME Content Team

SKM CONDUCTED a seminar in Riyadh, the objective of which it described as wanting to showcase its capabilities and product range, moving in the direction of inverterisation. Speaking to Climate Control Middle East, SKM said the event attracted more than 135 delegates, including representatives from ministries, and consultants and contractors.

The major emphasis of the seminar, the company said, was SKM’s ability in designing and producing equipment for 60Hz, tailored for high-ambient conditions. Broadly speaking, the company presented its VRF systems,

chillers, high-wall systems and ducted models. Additionally, the company showcased its 100% fresh air package units.

SKM is investing in Saudi Arabia. The company said it is determined to expand its existing manufacturing facility in Dammam with the aim of maximising its market share. It said with that in mind, it has established regional sales and after-sales offices in Riyadh, Jeddah and Dammam. “Along with opening sales offices, we have increased our regional warehousing capacities, stocking a variety of units and spare parts to meet the rapidly increasing demand in Saudi

Arabia,” said Asim Ahmad Hashmi, Applied Sales Director, SKM.

The seminar included discussion on high-ambient inverter products, the expansion of the company’s factory in Saudi Arabia, local content certified by the Saudi Arabia government, reference projects and SKM’s testing laboratories, among other topics. Speakers included Hashmi; Atif Arien, Unitary Sales Director, SKM; Harshal Dhakad, Regional Sales Manager, GCC & Africa; and Ahmad Saad, Territory Branch Manager, Riyadh

SKM said one of the key outcomes of the event was an appreciation of its VRF system, incorporated with region-specific

Asim Hashmi speaks on SKM’s vision for Saudi Arabia

Atif Arien speaks on SKM’s approach in Saudi Arabia

Ahmad Saad speaks on SKM’s infrastructure set up in Saudi Arabia

Harshal Dhakad speaks on SKM’s unitary product range

features that qualify it as a high-ambient unit, and its ability to support the earning of green building credits. SKM said another outcome was the appreciation it received for its chillers, which it described as enjoying the best kW/TR rating in the industry. The company’s 100% fresh air rooftop units as well as its inverter package units also received positive attention, SKM claimed.

Hashmi, speaking during the event, said: “SKM has launched high- and premium-efficiency inverter chillers with refrigerant-cooled, inbuilt VFDs, delivering the best kW/TR efficiency, meeting most of the international standards, like AHRI, ASHRAE and UL. SKM’s applied products are built to meet customised requirements versus many

other brands, which fail to meet exact specifications.

Arien said: “SKM will be celebrating 50 years as a brand in 2024. In the last 49+ years, SKM has made inroads in 27+ countries through a strong distributor and direct sales approach. Localising efforts in each territory is the best strategy to serve the customers from through the product life cycle. The SKM unitary product line has been enhanced to not just meet but exceed SASO regulation requirements, helping us become one of the preferred brands in Saudi Arabia.

Dhakad said: “Sustainability in every action we take – product design, vendors, components used, etc. – has been a vital part of our new product development approach, leading the

Wilo MENA announces expansion of its Dubai facility

Pumping systems manufacturer says it aims to boost manufacturing capacity to meet the growing customer demands

By CCME Content Team

WILO Middle East and North Africa (MENA), manufacturer of pumps and systems, announced the expansion of its facility in Dubai. Making the announcement through a Press release, the company said the expansion is in line with its aim to increase production capacity and grow current manufacturing capability, which coincides with an increase in its business volume across the regional market.

According to the release, the groundbreaking ceremony for the expansion of its Dubai facility was held in the Wilo Group’s factory in Dubai. Furthermore, the release said the expansion of the manufacturing facility highlights Wilo’s commitment to meeting the growing customer demand for Wilo pumps and systems, widening its regional portfolio, increasing manufacturing capacity and enabling

way towards helping new and retrofit buildings to get major regional credits, including environmental benefits under USGBC for LEED certifications as well as other regulations. HVAC contributes to 65-70% energy consumption of the building, and hence, we consider it as our obligation and responsibility to improve efficiency. New product development is a relentless and never-stopping activity in SKM, as we are the biggest regional HVAC manufacturer serving GCC region countries and meeting the local demands.”

Saad said, “SKM has excellent manufacturing facilities in the UAE as well as in Dammam, meeting the local 60Hz demand, customised for the Saudi Arabia market.”

the production and testing of largersized pumps.

Yasser Nagi, Group Director of MENA region and Managing Director of UAE, said: “We are delighted to announce the expansion of our manufacturing facility and product offerings in the UAE, particularly considering the success we have experienced in the region over the past five years. Our ‘Made in UAE’ line of products has been utilized in numerous government projects throughout the MENA region, contributing to the country’s vision and addressing critical issues like water scarcity.”

Ahmed Nabil, Production Manager, MENA region, Wilo Middle East, said: “The new expansion strategy reflects our commitment to the local market, emphasising our dedication to providing locally produced products tailored to each customer’s unique needs. This project will serve as a crucial step in Wilo’s efforts to diversify its product offerings within the region. Over the years, the company has witnessed remarkable growth potential in the UAE, resulting from our localisation efforts. The new investment will strengthen our position in the local and Middle East markets, instilling greater confidence among our clients.” Moreover, he added, we look forward to the new possibilities this expansion plan brings and offer our customers cutting-edge pump and water management solutions.

Yasser Nagi (centre) during the groundbreaking ceremony

CIBSE UAE gets new Chairperson

Imran Shaikh set to steer the organisation, announces intent to empower excellence and collaboration

By CCME Content Team

CIBSE UAE appointed Imran Shaikh, Head of Mechanical, Ramboll Middle East, as its new Chairperson. Making the announcement through a Press release, CIBSE UAE quoted Shaikh as saying that the organisation’s vision is to empower excellence and foster collaboration. “Together, we will create a dynamic and knowledgeable building service industry that shines with innovation and expertise,” Shaikh said.

Shaikh said the organisation’s mission is to empower professionals with the tools and opportunities needed to reach unprecedented levels of excellence. “We believe in continuous growth and professional development, and our initiatives in 2023 and 2024 are designed to make a significant impact,” he said.

Shaikh said collaboration lies at the heart of the organisation’s approach. By partnering with influential institutions, such as EGBC, CIOB and RIBA, CIBSE UAE will create a vibrant network of knowledge sharing and collective progress, Shaikh said. “Through joint conferences, seminars and events, we will bring together industry experts, thought leaders and practitioners, empowering professionals with the latest industry insights and best practices,” Shaikh said. “As we face the urgent challenge of climate change, our commitment to sustainability is unwavering. In alignment with COP28 and the global climate agenda, we will actively engage in discussions and initiatives. By advocating for sustainable

practices, energy-efficient solutions and the integration of renewable technologies, we will contribute to a greener and more resilient future.”

Shaikh said CIBSE UAE is dedicated to nurturing the next generation of building service professionals. Pointing to the organisation’s student design competition as an example, Shaikh said it will serve as a platform for young talents to showcase their creativity and innovative ideas. “By encouraging their participation, we will inspire a culture

Imran Shaikh Chair

Mark Lynch

Manjunath Naik

of innovation and lay the foundation for future excellence,” he said.

Shaikh said CIBSE UAE believes in acknowledging outstanding achievements and setting new benchmarks. The CIBSE UAE Awards 2023, he said, will be an extraordinary celebration of excellence within the building services industry. “This year, we are expanding the categories to invite a wider range of participants from diverse sectors,” he said. “Together, we will create a platform that showcases remarkable projects, innovative solutions and the remarkable contributions of professionals in our industry.”

The CIBSE UAE Committee for 20232024 comprises senior leaders who are ready to make a significant impact on the built environment industry, Shaikh said. The Committee includes:

Vice Chair

Honorary Secretary

Ashveen Jeetun Treasurer

Isaac Coker Technical Committee Chair

Giovani Tauckoor SOPHE Chair

Reid Donovan

Lubna Saeed

Mohammed Abdul Wasi

Saim Riyaz

Membership Champion

Assistant Membership Champion

Assistant Membership Champion

Assistant Membership Chwampion

Anzala Asher WiBSE Networking & Support for Social Media Officer

Nizam Ahmed

Alejandro Bonilla

Sundara Gurushev

Aishwara Chengappa

Reha Hansraj

Mohammed Shamroukh

Daniel Chambers

Priyankadevi Murugappan

Abhishek Kumar Rai

Maham Malik

Conor Moore

Atam Hayat

Krishna Ajith

Ahmed Labeeb Sharafeldin

Farah Naz

Social Media Officer

Social Secretary & Head of Event Management Team

Event Management Team Member

Event Management Team Member

Event Management Team Member

Event Management Team Member

Education Liaison

Education Liaison

Education Liaison

Education Liaison

Newsletter Editor

Newsletter Editor

Newsletter Editor

Newsletter Editor

Sustainability Lead and Stakeholder Liaison

Imran Shaikh

Imran Shaikh with Farah Naz

Armstrong Fluid Technology launches a new range of pressurisation units

New range of pressurisation units is engineered to enhance efficiency and minimise maintenance costs for sealed HVAC systems, the company says

By CCME Content Team

ARMSTRONG Fluid Technology has expanded its portfolio of pressurisation units for HVAC applications. Making the announcement through a Press release, the company said that the new 3760 Pressurisation Unit Range offers a complete suite of products and a combination of features to ensure the effective operation of sealed HVAC systems in large domestic, commercial, or industrial settings. The company added that each model in the range had been

engineered with a space-saving design to maximise usable space within the building while ensuring an effortless installation. The company further added that its ‘fit and forget’ design also delivers maximum flexibility, enhanced efficiency, and reduced maintenance expenses.

According to Armstrong, the units will maintain the minimum system pressure requirements by continuously monitoring conditions and logging top-up demand. The company said the 3760 Standard

Pressurisation units are available in wall, floor, and dual system variants, offering easy commissioning and seamless BMS connectivity, and enabling preventative maintenance, ultimately leading to a longer HVAC system lifespan and yielding cost savings over time. Further, the company added that all three variants of the Standard Pro units are offered in both single and twin configurations operating at 50Hz; the Pro 2MP & Pro 2HP models are available at 60Hz to ensure compatibility throughout the GCC region and the top-up delivery pressure ranges from 1-8 bar.

Furthermore, the release said that within the full 3760 Pressurisation Unit Range, all models have built-in dry run protection, anti-seize routine, and flood protection. In addition to this, Armstrong said they provide notifications for excessive starts and optimise pump run time to safeguard the system against wear and tear. The remaining three new units in the range - the ProVDG, the ProDose, and the 3-in-1 ProDoseVDG - are each equipped with enhanced features and capabilities, the company added.

According to Armstrong, the ProVDG Pressurisation unit combines standard pressurisation capabilities with vacuum degassing, helping to prevent damage to the pumps, heat exchangers, and valve seals; the ProDose Pressurisation unit features automatic dosing to maintain minimum pressure while balancing chemical additives with 100% accuracy, and, the 3-in-1 ProDoseVDG combines the features of the units mentioned above, incorporating pressurisation, vacuum degassing, and automatic dosing capabilities.

Baltimore Aircoil Company introduces sustainable heatrejection products for refrigeration

Company says environmentally friendly heat rejection approaches play a vital role in building a sustainable future

By CCME Content Team

BALTIMORE Aircoil Company (BAC) announced the development and production of sustainable products for refrigeration as part of the company’s environmental, social, and governance commitments. Making the announcement through

a Press release, the company said environmentally friendly heat rejection approaches play a vital role in building a sustainable future, cutting costs and ensuring compliance for organisations. According to the release, BAC’s sustainable heat-rejection products for refrigeration include the CXVT

Evaporative Condenser XE models, the Vertex™ Evaporative Condenser, and the TrilliumSeries™ Adiabatic Condenser. The design of these products improves environmental lifetime operating impact by addressing factors such as energy usage, water and chemical usage, refrigerant impact, maintenance, and consumables, the release said. Furthermore, the release also said that BAC offers direct-drive EC systems in the market.

In addition, the company said that materials used by BAC for construction significantly reduce water and chemical usage, while adiabatic technology decreases water usage by 30% to 80% by utilising water only when needed. Customers, the company added, can opt to convert medium applications with air-cooled systems using synthetic refrigerants to natural refrigerants, contributing to a positive environmental impact.

Schneider Electric launches online energy transition course

Company says the aim of the course is to raise awareness of the need to transition to low-carbon energy sources

By CCME Content Team

specialised areas, Schneider said.

“I am confident that this course is the first in a series on the topic of transitioning to more sustainable human behaviour on the planet,” said Raphaël Dard, Programme Manager, ITC SME Trade Academy. “Working jointly on this course was very inspiring and promising. This free online course is a new step in our mission to educate and empower individuals and businesses to embrace the energy transition.

Cédric Carles, Founder, and Director of Atelier 21, said, “By

collaborating with ITC and Schneider Electric, we are getting closer to our goal: A world where every person understands and can contribute to a sustainable energy future.”

Schneider said participation in this initiative complements and strengthens its longstanding dedication to sustainability and youth empowerment. It said it is committed to providing professional training to one million young people by 2025 and that to date, over 400,000 individuals have already benefitted from the initiative.

Gilles Vermot Desroches, General Delegate, Schneider Electric Foundation, and Director, Citizenship and Institutional Affairs, said: “Schneider Electric takes great pride in being a key player in the education field. The launch of this free online course shows our commitment to the energy transition and our dedication to being accessible to all.”

SCHNEIDER Electric, together with the International Trade Centre (ITC), a United Nations (UN) agency, and the French NGO, Atelier 21, launched a new online training module about the energy transition. Titled “Become a Player in the Energy Transition”, the course is free to access and is available to everyone in English, with other languages to follow, Schneider said through a Press release.

With fossil fuel prices soaring globally, and experts warning that our planet will shortly exceed the Paris Agreement’s 1.5 degree C warming threshold, the need to transition to low-carbon energy sources has never been more urgent, Schneider said. The new course aims to raise public awareness and understanding of the political and technological challenges and the benefits of the transition, Schneider said. Encompassing a variety of case studies from rural and urban settings marked by differing levels of development, the module also encourages participants to consider professional opportunities in the clean energy sector by directing them to more technical courses on solar power, wind power and other

Research Council for Refrigeration Technology publishes position statement on PFAS-regulation

Substances from the PFAS group play a central role in the design and operation of refrigeration systems and heat pumps, Council says, adding that the planned PFAS ban presents the industry with unsolved challenges

By CCME Content Team

THE PFAS Working Group of the Research Council for Refrigeration Technology, in its position statement, “Significance of the proposed PFAS-regulation for the refrigeration industry”, presented the most important consequences of the proposed regulation of PFAS group of materials, via Annex XV of the REACH regulation. Making the announcement through a Press release, the Council said the consequences were investigated by a previous survey among the members.

According to the Council, the survey identified wide-ranging fields in which companies in the refrigeration industry are affected by the restriction. The four main sectors are:

1. Construction and coatings or parts used for components, which ensure safe and energy efficient function as well as reduction of material

consumption and wear.

2. Gasket materials and sealing systems of many types, which provide safe operation and allow easy exchange and repair of parts, thus preventing the release of harmful substances that can leak from the system and pollute the environment.

3. Electrotechnical and electronic components – that is, motors, sensors, switches and cables –needed for drivers and controls of components and systems.

4. Refrigerants that represent the best possible choice for refrigeration and heat pumps systems in particular applications under given circumstances, taking into account the material consumption, energy efficiency, system safety and ecological effect.

“We see that PFAS-containing materials play a central role in the safe and functional operation of refrigeration systems and heat pumps,” said Felix Flohr, of Daikin Chemical Europe, who chairs the Working Group. “How these functions can be replaced is still unclear.” In principle, the Council said, it supports the goal of better protecting the environment and people from risks posed by chemicals. However, refrigeration technology is indispensable in many critical infrastructure applications and, thus, systemically relevant, the Council said. Without exemptions for the applications mentioned, there are significant risks in the affected areas of society, the Council said, adding that these include, for example, hospitals, data centres, industrial and energy facilities, and the entire cold chain for foods.

AMCA to host IEQ conference

Insite Technical Conference to focus on improving the comfort, health, safety and productivity of indoor environments

By CCME Content Team

THE Air Movement and Control Association (AMCA) International said it will be hosting the Insite Technical Conference on September 20 and 21 in Kansas City, Missouri, in the United States. The conference will focus on improving the comfort, health, safety and productivity of indoor environments. AMCA said through a Press release.

The conference will offer a practical and useful peer-to-peer learning experience, AMCA said, adding that the speakers, all authorities in their

fields, have been chosen based on not only their knowledge but also their experience with technical training. The conference will feature 18 sessions, divided into two tracks: Air Movement and Air Control, AMCA said, adding that buildings industry professionals – engineers, architects, contractors and commissioning providers, in particular – with an interest in improving the comfort, health, safety and productivity of indoor environments, will find the conference useful.

ASHRAE receives USD 2.85 million grant from RECI

Award will fund ECO-TEC, a project led by national model code organisations, ASHRAE and the International Code Council

By CCME Content Team

ASHRAE said its seven partnering organisations and it have received a USD 2.85 million grant from the U.S. Department of Energy Building Technologies Office for Resilient and Efficient Codes Implementation (RECI). Making the announcement through a Press release, ASHRAE said RECI is a product of the Infrastructure Investment and Jobs Act, which provides an opportunity to advance the efficiency and resilience of buildings through successfully implementing updated energy codes in states and local jurisdictions throughout the United States.

Furthermore, ASHRAE added that the program invests USD 225 million over five years, encompassing fiscal years (FYs) 2022 through 2026, to enable sustained costeffective implementation of updated building energy codes. According to the release, the award will fund the Energy Code Official - Training & Education Collaborative (ECOTEC), a project led by national model code organisations, ASHRAE and the International Code Council (ICC), with support from the National Association of State Energy Officials (NASEO) and agencies from the states of Oregon, Michigan, New Jersey and West Virginia.

ASHRAE said ECO-TEC will increase energy code enforcement activities through a multi-module training targeted to building energy code officials (ECOs). And an important component of the project will include connecting with disadvantaged and rural communities through new communication channels to expand the workforce and providing career opportunities to those populations through training stipends, the organisation added.

According to ASHRAE,

• The impacts from the project are expected to save the four state partners approximately USD 18.5 million over the course of the project.

• The impact will reflect the difference between “Standard” and “Improved” compliance and assumes that the partner

states adopt the latest model energy codes.

• The potential savings for 48 states (minus California and Washington) with “Improved” to “Aggressive Compliance” using their current codes range between USD 12 million and USD 41 million in Year One and between USD 149 million and USD 335 million by Year Five. “Improved” to “Aggressive Compliance” would also prevent between 0.06 MMT (million metric tons) and 0.20 MMT of CO2 emissions in Year One and between 0.81 MMT and 1.77 MMT of CO2 in Year Five. Programme effectiveness will be evaluated to ensure sustained compliance and impacts.

Comments from partnership leaders who shared support for the project:

“The ECO-TEC will significantly contribute to advancing energy-efficiency and resilience in our buildings, ultimately leading to a more sustainable future. By empowering code officials and professionals with the necessary knowledge and skills, we can effectively transform the built environment and promote sustainable practices nationwide. We are thrilled to partner on this important project.”

Jeff Littleton, Executive Vice President, ASHRAE and Principal Investigator of the ECOTEC

“We are excited to be a partner in this exciting project that will address an identified need for energy code training and expand the availability of training resources to improve energy code compliance.”

Gabe Maser Senior Vice President, Government Relations, International Code Council

“The longtime NASEO – ASHRAE partnership continues to advance our shared energyefficiency and resilience goals. Through the ECO-TEC project, we will expand our joint work to assist State Energy Offices and other State and local agencies in advancing cost-effective building energy code implementation. NASEO and our members value the expertise and

leadership that ASHRAE, the participating State Energy Offices, and other project partners bring to this important activity.”

David Terry, President, NASEO

“As the State’s sole construction code adoption authority, LARA works collaboratively with ASHRAE and the International Code Council in the development and implementation of energy and other related construction codes. LARA recognizes the critical importance of timely code adoption and further addressing the needs of local jurisdictional inspectors, builders, and design professionals in education and training as new codes are adopted.”

Andrew Brisbo, Director, Bureau of Construction Codes, Michigan Department of

Licensing

and Regulatory Affairs

“New Jersey recently adopted the 2021 IECC residential and ASHRAE 90.1 commercial building energy codes. Providing training opportunities to new and current officials for enforcing these codes through this grant, especially in overburdened communities, will be instrumental in meeting the State’s energy and equity goals.”

Stacy Ho Richardson Deputy Director, Division of Clean Energy, New Jersey Board of Public Utilities

“Our strategic engagement team will support efforts to build awareness of the project and further the goals of the community benefits plan to support the diverse and equitable deployment of these valuable resources within our state.”

Janine Benner, Director, Oregon Department of Energy

“The Oregon Energy Efficiency Specialty Code, utilizing ASHRAE 90.1-2019, is the energy code for all buildings constructed under the commercial building code. The Division recognizes that increasingly complex energy codes require training resources developed directly with ASHRAE. We are honoured to be part of this team seeking federal support.”

Alana Cox, Administrator Oregon Building Codes Division

“We are excited to be a partner in this exciting project that will address an identified need for energy code training and expand the availability of training resources to improve energy code compliance.”

Karen R Lasure, West Virginia State Energy Program Manager

Ziehl-Abegg announces new production facility in

Vietnam

The new facility will enable the company to meet the growing customer demands, says the company’s Production Director

By CCME Content Team

ZIEHL-ABEGG, the German manufacturer of electric motors and fans, announced its plans to open a new production facility in Vietnam. Making the announcement through a Press release, the company said the move aligns with the company’s efforts to expand its production capacities and get closer to its global customer base.

According to the release, the official founding ceremony of the new subsidiary, “Ziehl-Abegg Vietnam,” was held on July 11, in Ho Chi Minh City. The new facility, the company revealed, is being built near Ho Chi Minh City with an investment of approximately EUR 25 million, and the construction work has

already begun due to the ongoing high demand from customers. Further, the company said the production at the new facility is scheduled to start in the first half of 2024, with full-scale production set to commence by the end of 2024.

Ziehl-Abegg also said that the production site covers 14,000 square metres, with 12,900 square metres allocated for production and 1,100 square metres for administrative purposes. This expansion, the company added, follows recent investments in expanding production capacities in Poland and the United States and continuous investments in Germany.

Commenting on the new facility,

Joachim Ley, Production Director, Ziehl-Abegg, said: “To meet the increasing customer demands, our strategic approach includes expanding our production facilities globally and establishing new ones in proximity to our customers. The new facility in Vietnam is particularly important for the markets in Asia and Australia; it will enable us to provide our customers with the best possible solutions.

Alexander Reich (left), Managing Director, ZiehlAbegg Vietnam, and Joachim Ley with the certificate of registration for the new company

Epta and Viessmann Refrigeration Solutions unite for a joint venture

The two organisations sign an agreement to build a new commercial refrigeration player in Central and Northern Europe

Edited by CCME Content Team

Epta S.p.A. (Epta) and Viessmann Refrigeration Solutions (VRS) announced they had signed an agreement to create a joint venture and build a new commercial refrigeration player in Central and Northern Europe.

Making the announcement through a Press release, Epta said they have decided to combine their respective commercial businesses, which include all of VRS’ commercial refrigeration activities in Germany, Poland, Czech Republic, Slovakia, Denmark, Finland, Sweden, Norway, and the Baltics, and Epta’s activities in Germany, Poland,

Denmark, Finland, and Norway. Epta added that through the agreement, Epta and VRS will strengthen their offering and presence in Central and Northern Europe. The company also revealed that the new joint venture, led by Epta, will have consolidated revenues of more than EUR 400 million and over 1,600 employees.

According to the release, through the joint venture Epta and VRS aim to:

• B ecome a one-stop shop provider of energy-efficient and sustainable commercial refrigeration solutions for retailers and the food and beverage

industry based on a complementary geographical footprint.

• Offer a comprehensive range of commercial refrigeration solutions and services based on sustainable innovations accelerating the green transition.

• Extend its leadership in the supply, production, installation, and maintenance of cooling systems based on an extensive network of professionals across Europe.

Commenting on the joint venture, Marco Nocivelli, President and CEO, Epta, said: “This marks the beginning of a journey and a partnership that will bolster our presence in Central and Northern Europe. Our expertise in the commercial refrigeration business and our alignment as family businesses are unique. The new joint venture, led by Epta, represents a stride towards establishing ourselves as a leader in the sector. We are well-positioned for success with increased production capacity and a stronger international presence.” Amidst the ecological and digital transition, he added that fostering connections and enhancing network dynamics are pivotal for a sustainable future. “This joint venture aligns with our strategy and reinforces our commitment to investing in the Group’s future across all the areas we operate,” he said.

Speaking on the occasion, Frank Winters, CEO, Viessmann Refrigeration Solutions, said: “The joint venture with Epta creates ideal conditions for long-term growth in a competitive market, uniting two market leaders in a partnership. Epta and Viessmann Refrigeration Solutions aim for a positive impact with solutions that preserve the planet; moreover, we combine energy-efficient solutions with scale and manufacturing power. The combination allows extensive geographical coverage in Europe, benefiting local and international customers, and a promising future for our customers, employees, and future generations.”

According to the release, the shareholding structure will reflect the governance of the joint venture: Epta

Marco Nocivelli

will own 70% of the joint venture, while VRS will own 30%. Epta added that it would fully consolidate the company into its Group financial statements after closing the deal. Further, the release also said that the deal’s closing is subject to customary conditions

precedent, including approval by the Antitrust Authorities, expected in the fourth quarter of 2023.

Furthermore, Epta said that this joint venture agreement would not affect its business activities in Western and Southern Europe, the Middle

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East, Latin America, the US, Asia Pacific, and Oceania. The transaction, the release said, does not include VRS’ clean and cold room solutions activities, VRS’ production site in Hof (Germany), the related sales companies and Viessmann Technologies.

ASHRAE publishes Standard 241, Control of Infectious Aerosols

trade war between the United States and China is one of the main factors clouding Chinese HVAC exports. SEMI – the Global Electronics Suppliers Association – has been monitoring the situation. It is concerned about a potential disruption that could jeopardise access to global markets, essential for maintaining free and open trade. Currently, many different consumer goods are manufactured in whole or in part in China. While the new tariffs aim to stop importing consumer goods from China, this may also affect semiconductor supply. They are essential for producing consumer electronics. As the cost of semiconductors increases, electronic circuits are likely to rise, making ACs more expensive.

Society calls it a significant advancement in reducing the risk of disease transmission in buildings

Edited by CCME Content Team

ASHRAE said it has published its pioneering consensus-based, code-enforceable standard, developed to reduce the risk of infectious aerosol transmission in buildings.

expand capacity, and quantitative quality is more important than quantity. The degree of impact of the trade war on different industries varies. For example, supply issues in semiconductors will quickly drive the development of domestic chips rapidly, and this global high-tech push is also beneficial in the long run.”

control design and operations is introduced.

COUNTING GOALS BEYOND THE GREAT WALL

• Requirements for Equivalent Clean Airflow Rate – Sets requirements for equivalent clean airflow rate target per occupant of pathogen free air flow, reducing the risk of infection.

The ASHRAE Standard 241, Control of Infectious Aerosols, establishes minimum requirements to reduce the risk of airborne disease transmission, such as SARS-COV-2 virus, which causes COVID-19, the flu virus and other pathogens in buildings, like single- and multi-family homes, offices, schools and healthcare facilities, ASHRAE said. The standard applies to new and existing buildings and major renovations and provides requirements for many

Nevertheless, Chinese manufacturers are bullish about the future. “Crisis and opportunity coexist at any time,” the Dunli spokesperson says. “At present, there are many factors affecting the growth of export volume. Our company believes companies should not blindly

Gas

aspects of air system design, installation, operation and maintenance, ASHRAE said.

According to ASHRAE, important topics addressed in the standard are:

• Infection Risk Management Mode (IRMM) – Establishes requirements for an infection risk management mode (IRMM), which applies during identified periods of elevated disease transmission risk. Authorities having jurisdiction can determine when the enhanced protections of Standard 241 are required. Resilience (the ability to respond to extreme circumstances outside normal conditions) in Indoor Air Quality

The global chip shortage has also affected equipment manufacturers. Wen says: “In the last year, chip shortage has been a key issue. Fortunately, because we have a massive manufacturing capacity in China, that has a competitive supply chain to support our manufacturing process. We are paying extra attention to optimising our supply chain and choosing suppliers who ensure sustainable chip supply.” Meanwhile, Midea, apart from making a certain number of reserves of imported brands, is moving to domestic production to shorten the supply cycle.

Chinese manufacturers have lofty dreams. They are looking at ramping up product development and establishing a striking brand image. Elaborating on Hisense’s regional targets, Dick Shi, General Manager of Hisense HVAC Middle East, says, “Hisense HVAC Middle East wants to be among the Top 3 AC providers in the region by 2025. In addition to working with partners in the ecosystems, we would like to support the region in achieving their sustainability goals by improving the energy efficiency of products approved by Barjeel, Saafat, ADQCC and ESMA.”

• Requirements for Use of Filtration and Air Cleaning Technology –Provides extensive requirements for use of filtration and air cleaning (such as HEPA filters, air ionizers or UV lights) to achieve equivalent clean airflow requirements and be costeffective, effectively and safely.

• Planning and Commissioning –Provides assessment and planning requirements for being ready for the times when there is an event with increased disease-causing pathogen transmissions. The standard has a building-readiness plan that documents procedures for assessing existing or new HVAC systems to determine if they are working properly and attributing to the equivalent clean air delivered to spaces.

Lee expects the regional projects market to pick up the pace. He says that even with soaring prices of bulk raw materials, the annual year-on-year growth has also achieved a year-onyear increase of 25% in 2022. He is emphatic when he says, “I believe this trend will continue.”

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{Quoteyard}

We bring you a collection of some of the most interesting quotes, extracted from articles in this issue. In case you missed reading, we recommend you flip back to take full advantage of the insights and remarks, in the context in which they have been presented.

In short, there are two tests to be performed each year to determine ‘Qualifying Free Zone Person’ status, and the remainder of the tax treatment follows on from there.

The refrigeration industry is an essential one that operates continuously – 24/7. Unfortunately, it often goes unnoticed and is taken for granted.

We need to fix the future of climate and agree to Globally Determined National Contributions (GDNCs), and not just NDCs. Peaking emissions by 2025, two years from now, halving them by 2030 and achieving net-zero by 2050 would need punitive and accountable actions for defaulters.

The Building Readiness Plan (BRP) will provide the end-user an overall assessment of the building’s IAQ. Important factors, such as building controls, filtration levels and air-cleaning technologies are documented, so that the user has an assessment of the building’s state of readiness for an infectious aerosol event.

p10

On many occasions, I find myself in meetings with energy companies, and they tell me they think the chiller is recirculating hot discharge air back into the condensers. I ask them, ‘Well, what percentage of air is recirculating, and I get a blank stare 100% of the time.’ p12

Barakat has implemented cold chain management systems to monitor temperatures and closely address deviations. The use of technology, such as Supervisory Control and Data Acquisition (SCADA) systems and sensors in delivery trucks, enables us to maintain optimal conditions and prevent product spoilage.

Assessing and benchmarking ESG performance can be challenging due to the lack of standardised metrics and subjective interpretation of criteria.

UNBEATABLE EFFICIENCY. REVOLUTIONARY DESIGN.

The unique square design, combined with the exclusive patented refrigerant distributor, makes the SQD the most efficient dry-expansion evaporator available on the market. Learn more at bitzer.de/SQD_en // mail@bitzer.ae

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