Monday, 23 December 2024

The shape of the Saudi VRF landscape

Industry stakeholders gather to discuss the role of VRF systems in the Kingdom, new regulation, testing methods and the credibility of industry standards

  • By Content Team |
  • Published: July 22, 2024
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The eight edition of the Middle East VRF Conference, on May 28 in Riyadh, brought together industry stakeholders with varying degrees of involvement in the Variable Refrigerant Flow (VRF) industry.

Hassan Younes, Co-Founder and Co-CEO, GRFN Global, who chaired the Conference, provided an overview of the VRF technology’s progress, during which he spoke of the increase in uptake of the technology in the Kingdom. Younes, reflecting on his experience, emphasised the significant advancements and market growth VRF has experienced since its early days. Speaking on the early scepticism surrounding VRF technology around 2006-2007, and noting its market growth since then, he said: “The VRF market value since 2010 was around five or less than five billion US Dollars. Now, it’s approaching 25 billion US Dollars [in 2022]. Probably it’s a little bit more now.”


During the Plenary Discussion. L-R: Hassan Younes, Nabil Shahin, Larbi Behloul and Mohamed Yassen

Despite the growth, Younes acknowledged several challenges impeding the broader adoption of VRF systems. He pointed out that while VRF systems may have higher upfront costs compared to traditional HVAC systems, a fair comparison should consider the electrical savings and reduced connected load VRF offers. He also highlighted the complexity in installation, noting that VRF systems require skilled technicians, which can complicate installation and maintenance. Additionally, there remains a lack of awareness about the benefits VRFs offer, and their applications, among consultants, he said. Further, compliance with standards, such as ASHRAE 15 and 15.2, poses further challenges, particularly regarding refrigerant safety, he said. And there are lingering concerns over the embodied carbon in VRF systems.

Younes shared insights from a study conducted in the UAE comparing various HVAC systems, including VRFs, air[1]cooled chillers and water-cooled chillers, in residential and office buildings.

He noted that the cost-effectiveness of VRFs could vary significantly depending on specific project requirements, making it challenging to generalise cost benefits without a detailed design.


During a panel discussion. L-R: Hassan Younes, Abdul Zameer Ahamed Sab, Khalid Mulhim, Jalal N Al Kurdi, Ahmed D Awartani and Mohamed R Zackariah

To address the challenges, Younes proposed several solutions. He advocated the need for more case studies to showcase the actual costs of different systems, including all design aspects. Increasing the number of certified installers could mitigate installation complexities, he said. At the same time, he acknowledged the improvements in awareness on VRF systems, thanks to conferences and publications by organisations like ASHRAE. He stressed the need for more training on compliance with relevant standards. He suggested that manufacturers use low-Global Warming Potential (GWP) refrigerants to reduce the environmental impact of VRF systems.

Younes highlighted the importance of addressing these challenges to unlock the full potential of VRF technology. “If you have, let’s say, 10,000 units in a city versus a centralised system, you know 10 large centrifugal chillers, you probably will have less leakage in these centrifugal chillers for immediate reasons. So, in order to fight this, probably we need the manufacturers now to think about these different alternatives of refrigerants that can help reduce the embodied carbon in the refrigerant part in VRF.”

Nabeel Shahin, Managing Director, AHRI MENA, speaking after Younes, highlighted how AHRI has established performance standards for various HVAC products, such as commercial refrigeration, unitary air conditioners, applied light chillers and heating systems. He also highlighted the role of the North American Technician Excellence (NAIT), a sister organisation with certification programmes to train technicians on various HVAC systems. He further spoke on how AHRI collaborates with regional regulatory bodies like the Gulf Standards Organization (GSO) and the Saudi Standards, Metrology and Quality Organization (SASO) to establish new standards and improve energy efficiency.

Shahin focused on the different HVAC systems and their energy consumption. He compared VRF systems to chiller systems, emphasising that each has unique applications and benefits, making neither inherently superior. Energy consumption, he explained, varies significantly based on the brand and technology used. For instance, window units are among the least efficient, consuming about 2,000 watts per hour. This high consumption contributes significantly to residential electric bills, especially in regions with high ambient temperatures, where HVAC systems run extensively.

Shahin highlighted VRF systems’ numerous benefits, such as energy efficiency, precise temperature and humidity control, quiet operation and design flexibility. However, he cautioned that the selection process involves considering various factors like combination ratios and piping lengths, which can affect capacity and efficiency. The diversity of indoor units and their configurations also adds complexity to system selection, he said.

Shahin’s presentation focused on AHRI’s certification standards, particularly AHRI Standard 1230, which measures VRF performance. This standard, first introduced in 2010, provides a reliable method for evaluating VRF systems, ensuring their efficiency and compliance with regulatory requirements, he said. Addressing the issue of refrigerants, Shahin discussed the global transition to more environmentally friendly options due to agreements like the Montreal Protocol and the Kigali Amendment to the Protocol. He explained the challenges of adopting new refrigerants, such as R32, which, despite being more environmentally friendly, are mildly flammable and require additional safety measures. This transition is crucial for reducing GWP and aligning with international environmental standards, he said.

Shahin also highlighted AHRI’s efforts to establish a local testing laboratory in Saudi Arabia, in collaboration with GCCE Lab. This laboratory is expected to be operational by the end of the year, in Dammam industrial area, he said.

Shahin emphasised the importance of AHRI certification for ensuring the quality and performance of HVAC systems. He pointed out that while the certification process adds a minimal cost, it significantly reduces risks related to performance, reliability and regulatory compliance. By investing in certified systems, stakeholders can ensure optimal performance, reduced energy consumption and alignment with global standards, ultimately contributing to sustainability and efficiency in the HVAC industry.

Shahin then sat down with Larbi Behloul, Director of Facilities Management, UAPM; and Mohamed Yassen, President, Saudi ASHRAE Chapter and Mechanical Engineering Consultant. Khatib & Alami, for a plenary discussion that Younes moderated. The focus of the discussion was on regulatory changes, industry standards and the evolving landscape of HVAC systems in the region.

Younes posed a question to Shahin about the shift in regulations in Saudi Arabia. Shahin mentioned the standards, SASO 2663 and SASO 2874. He explained that Saudi Arabia is moving towards introducing seasonal energy efficiency. “We’ve been in discussions with SASO to establish new requirements,” he said. “They are thinking about adding Minimum Energy Performance Standards (MEPS) for Seasonal Energy Efficiency Ratio (SEER).”

Shahin said a survey involving manufacturers was conducted to decide on new SEER requirements. He said: “They are coming to a conclusion of having 10.2 minimum SEER for fixed speed systems and 11.8 SEER for variable speed systems,” he said. He emphasised the importance of this move, aligning Saudi standards with international benchmarks and making HVAC systems more efficient throughout the year.

The conversation then shifted to the impact of regulatory changes on design and costs. Yassen said: “ASHRAE 90.1 is under continuous maintenance, updated annually. New standards, like HD41, specify details about visibility of using variable refrigerant flow and also how to put consideration for all design for VRF.” He noted that the updates are crucial for ensuring efficient design and operation of HVAC systems, despite the higher initial costs associated with VRF technology.

From a facilities management viewpoint, Behloul shared his thoughts on the practical implications of the regulatory shifts. Behloul spoke of how trust is placed on consultants, but their information is not always accurate. He noted that the equipment may be labelled as AHRI-tested when it has not been. Behloul emphasised that the move is crucial, as it ensures more credibility for equipment labels and consultant studies, especially when comparing different systems like VRFs and traditional chillers. He said the industry is looking forward to new regulations and expanded testing methods, such as controls and integrated energy ratios, which will provide more reliable information.

The discussion then touched on the global transition towards low-GWP refrigerants. Shahin explained the urgency needed for making the shift, driven by the Kigali Amendment to the Montreal Protocol. “By 2028, we need to start transitioning to lower-GWP refrigerants, with a target of 80% reduction by 2046,” he said. This ambitious goal aligns with Saudi Arabia’s proactive stance on environmental issues, having already moved away from ozone-depleting refrigerants like R22 ahead of schedule.

Khalid Mulhim, Business Development Director, Suhaimi Design – Protecooling, sharing insights, as a member of the audience, on Saudi Arabia’s existing programmes for refrigerant management and climate zoning, said: “Saudi Arabia has a good programme with the environmental department for refrigerant management since 2001. The country also has mandatory recovery systems for large chillers.”

Another member of the audience, Mohamed R Zackariah, Chief Consultant, Suhaimi Design – Protecooling, inquired about the options for low-GWP refrigerants suitable for Saudi Arabia. Shahin, addressing the complex issue, mentioned alternatives like Propane (R290), CO2 and Honeywell’s R123YZ. “Finding the right refrigerant is not easy,” he said. “We need to consider safety, toxicity, efficiency and availability. It’s a million-dollar question.”

The panellists collectively agreed on the importance of training and awareness. Behloul highlighted the need for proper technician training and government support, sharing an example from Algeria, where technicians receive free recovery units as part of their education. “It’s crucial to train technical teams to prevent refrigerant leakage and ensure compliance with environmental standards,” he said.

The conference was also an opportunity for the private sector to highlight its technologies. Anas Alfar, Consulting Sales & Training Engineer, Hussein & Alhassan G. Shaker Brothers For Modern Trading Company, also speaking on behalf of Midea, introduced the new V8 Series. “The story of Midea with VRF products is not new,” Alfar said. “It started in 1999. Today, after 25 years of experience in manufacturing and developing VRF technology, we are proud to say Midea is a well-known brand and a global market leader.” Alfar highlighted the significance of the V8 series, emphasising its unique features and technological advancements. He said that the concept behind developing the V8 is about breaking the boundaries of the VRF industry with reliable quality and a range of design options.

Addressing environmental challenges, Alfar discussed how VRF systems struggle to operate efficiently in extreme climates like Saudi Arabia. “To solve this problem, Midea has invented the Shieldbox,” he said, highlighting one of the features of the V8 Series. “This innovative solution includes an IP55-rated control box equipped with an intelligent thermal management system, ensuring optimal operation even in harsh conditions.

Alfar, then introducing the V8’s Hyperlink protocol, which is designed to address installation challenges, said, “Around 22% of VRF failures are due to installation quality.” The Hyperlink allows for flexible wiring patterns, including series, tree, circle and star connections, providing more cost-effective and time-saving installation options. “With Hyperlink, you’re free to use normal cables for communication wiring, reducing costs by up to 10%,” he said.

Alfar, then discussing the V8’s third key feature, the Supersense, said it equips the V8 outdoor unit with 19 sensors, the most comprehensive in the VRF industry. “Supersense can create a virtual sensor to back up a defective one, ensuring continuous operation until the problem is resolved,” he said. Alfar also addressed the design aspects of the V8 series, noting its high capacity and space-saving benefits. “The V8 comes with a total capacity for one module up to 40 HP, the largest in the industry,” he said. “Combining three outdoor units will give you around 120 HP on one system.” He also mentioned the V8’s side-discharge option, which provides flexible installation in critical spaces.

Alfar concluded the presentation by highlighting the unique features of the VRF indoor units, including smart and efficient air quality improvements. “The V8 VRF indoor units are dedicated to providing intelligent, efficient and safe air solutions for urban spaces,” he said. “The V8 systems have been operating since last year in Saudi Arabia with proven efficiency and cooling performance.”

The conference also saw a presentation by Hisham Malhas, Assistant Consulting Sales Manager, SKM, who highlighted the dual nature of air conditioning systems. They ensure our environment is safe and comfortable but are also significant energy consumers, contributing to carbon emissions and high energy consumption, he said. By 2050, the global population is expected to reach 9.7 billion, and the need for air conditioning equipment will rise from 1.5 billion units to 4.4 billion units, he said. This surge in demand places a tremendous responsibility on the industry to find sustainable solutions, he said.

Malhas presented stark statistics, saying 40% of energy consumption in households worldwide is attributed to HVAC systems, with this figure rising to 60% in Saudi Arabia. The projected electricity demand will double to around 40 terawatt-hours by 2050, he said. “This is why all local, regional and international regulatory entities are imposing new regulations to enhance the efficiency of these systems,” he said.

Speaking on inverter technology as a potent solution, he described it as a method to adjust power usage to suit exact needs by manipulating the rotation and speed of compressors and motors. “Inverter technology ensures the comfort of the user while saving between 30% and 50% of energy,” Malhas said. He illustrated this with a chart comparing conventional on-off systems with inverter systems, likening the smoother operation of inverters to a comfortable car ride.

Malhas peppered his presentation with real-world examples, such as a comparison between VRF systems and conventional rooftop package units for a 300-ton commercial building. The VRF system resulted in an annual energy cost saving of USD 16,000, with a payback period of just 3.5 years, he said. Another case study for a 40-ton residential building showed an annual energy saving of $2,731, with a payback period of around 3.1 years, he added.

“SKM is proposing two types of VRF products: The modular duct discharge Pro V6 and the mini VRF Pro VMS,” Malhas said. “The Pro V6, with a capacity range between 8 and 88 horsepower, offers flexibility and efficiency, while the mini VRF Pro VMS, suitable for residential applications, supports up to 10 indoor units per outdoor unit with impressive energy efficiency ratios.”

Addressing reliability concerns relating to VRF systems, Malhas reassured the audience by showcasing SKM’s multi-tenant function, which isolates faulty indoor units to ensure continuous operation for the remaining units. The automatic static pressure setting in SKM indoor units further simplifies installation and ensures optimal airflow, he said.

Malhas concluded his presentation by showcasing SKM’s comprehensive control solutions, from individual controllers to BMS integration, allowing for efficient management and energy savings. Malhas also revealed SKM’s plans to launch an in-house VRF product manufacturing facility in Dammam by 2025, aligning with Saudi Vision 2030’s goals for industry localisation and technology transfer.

Active AI pressure control system

Azad Ali Khan, Senior GM of Performance Management and Transition, EFSIM Facilities Management Company and Ali Shaikh, Senior GM of Operations, EFSIM Facilities Management Company, then spoke on sustainability, urbanisation, the role of FM in sustainable urbanisation, VRF technology, and the optimisation benefits of an active AI pressure control system. Khan set the context by addressing the pressing issue of climate change. “Annually, we generate 37.9 gigatons of CO2 and 52.8 gigatons of CO2-equivalent,” he said, citing data from the United Nations Environment Program. “These emissions contribute to global warming, with CO2 accounting for 76%, and fluorinated gases, although only two per cent, having a high warming potential.”

Shaikh said VRF technology is a perfect fit to mitigate climate change. “VRF systems use refrigerants for heating and cooling, known for their energy efficiency and flexibility,” he said. “They are eco-friendly, energy efficient, and produce less noise pollution. They also utilise smart data analytics and optimise space utilisation, making them commercially viable long-term.” The discussion then shifted to the active AI pressure control system. “These systems use AI algorithms to regulate and control pressure in various applications,” Shaikh said. “They collect data, analyse it, make decisions and control actions in real-time, ensuring optimal pressure levels and improving system performance.”

Khan highlighted the optimisation benefits of integrating AI with VRF systems. He said AI-driven VRF systems lead to significant energy savings, reduced operating costs and improved comfort levels for building occupants. They also reduce maintenance requirements by identifying potential issues early, he said. Both speakers emphasised the role of FM in sustainable urbanisation. “FM professionals have a responsibility to adopt green practices,” Khan said. “This includes using eco-friendly chemicals, implementing IoT and AI for data analytics and focusing on renewable energy sources like solar power. In the GCC region, where 70% of electricity consumption is for air conditioning, these measures are crucial.”

Guideline 41: Design, installation and commissioning of VRF systems

Yassen of ASHRAE then made a technical presentation on ASHRAE Guideline 41: Design, installation and commissioning of VRF systems. “We have so many experts in VRF, but we have some standards from ASHRAE,” Yassen began. “ASHRAE, as you know, has so many standards, guidelines and books. They have a long journey with forming standards.” He highlighted the importance of ASHRAE 41, specifically for VRF systems, emphasising that it cannot be viewed in isolation. “We cannot take one standard alone and set that guideline or one identity for our design,” he said. “We are in this decision to know the most efficient selection of VRF.”

Yassen stressed the importance of safety and the need to consider various ASHRAE standards in conjunction. He urged the audience to consider safety first with ASHRAE 15, and ASHRAE 34 for refrigerant selections. These standards ensure that the refrigerant safety and selection are prioritised, he said.

Yassen noted the technical intricacies of VRF systems, differentiating between heat pump and heat recovery options. “For heat pump, we have only two options, heating, normal heating or normal cooling,” he explained. “But for heat recovery, two pipes or three pipes, we have the option to – and the freedom to – select and control zone by zone.”

Yassen addressed the visibility and cost considerations of VRF systems, noting that while the initial cost may be higher than traditional systems, the life cycle cost should be taken into account. He also highlighted the importance of selecting the right system for different zones, using examples like schools and shopping centres to illustrate his points. “You shall select as a designer, you have to select zone with the same purpose to select one machine or multiple machines for them,” he said.

Yassen emphasised the significance of refrigerant management and ventilation, illustrating the potential risks and the necessary precautions. “Leakage normally occurs at the installation stage and during operation and maintenance,” he noted, stressing the importance of proper training and certification for installation and maintenance personnel.

A comprehensive “cookbook”

Yassen’s presentation gave way to a panel discussion on HVAC performance data. Moderated by Younes, the discussion involved Mulhim; Zackariah; Abdul Zameer Ahamed Sab, MEP Lead (Principal), AtkinRealis; Jalal N Al Kurdi, Commercial Director, Hussein & Alhassan G Shaker Brothers For Modern Trading Company; and Ahmed D Awartani, Branch Area Manager – KSA Eastern region, SKM.

Younes began the discussion by emphasising the significance of performance data, highlighting the importance given to the topic since the inception of the conference, over eight years ago. Younes referenced a controversial article from 2010 that compared VRF systems with ground[1]source heat pumps, which sparked debates about data accuracy and system efficiencies.

Younes posed the question, “Do we have performance data from projects that show the actual kilowatt per ton or coefficient of performance (COP)?” The panellists, as one, acknowledged the lack of accurate data, with Ahamed Sab noting the difficulty in obtaining perfect performance data for VRF systems and the challenges in convincing clients about the efficiency of selected systems.

Mulhim emphasised the need for manufacturers to provide reliable data, citing business needs and the challenges of convincing clients. He urged manufacturers to take the lead in establishing transparent data to facilitate informed decision-making.

Zackariah highlighted the need for transparency and the ability to validate performance data, noting that consultants often have to trust manufacturers’ data without independent verification. He called for improved collaboration and data sharing between manufacturers and consultants to ensure accurate performance assessments.

Kurdi highlighted the evolving nature of VRF technology, mentioning the improvements manufacturers have made over time based on data collection and practice. He also discussed the advantages of VRF systems in terms of space-saving and energy efficiency compared to traditional DX systems.

Awartani discussed the discrepancies between proposed and actual data, stressing the importance of verifying operational data against engineering solutions. He mentioned European models like “pay from savings” that incentivise accurate data collection and monitoring.

Younes proposed that manufacturers should invest in projects to collect and share performance data, suggesting collaborations with consultants and clients. Kurdi shared an example of a project where VRF systems replaced mini chillers, resulting in noticeable energy savings, and promised to consider such initiatives.

Moving on, Mulhim discussed the challenges of using water-cooled VRF systems in regions with harsh climates and water scarcity, suggesting that these systems might be more suitable for areas with more favourable conditions. He also mentioned the potential of geothermal systems, although regulatory and cost issues pose significant barriers.

The panel concluded with a discussion on the future of VRF technology. Mulhim emphasised the need for a comprehensive “cookbook” or handbook for VRF systems, along with open communication between manufacturers and consultants. He predicted that the trend of VRF systems would continue to grow due to space constraints and the increasing availability of advanced controls and monitoring tools.

Kurdi pointed out the necessity of water in District Cooling projects and how VRF technology could complement such systems, emphasising the need for data collection and sharing to drive the adoption of innovative HVAC solutions.

The panellists agreed that while significant challenges remain in collecting and validating performance data for VRF systems, collaboration among manufacturers, consultants and clients is essential. By investing in data collection and sharing, the HVAC industry can make informed decisions, improve system efficiencies and, ultimately, provide better solutions for clients.

“Vendor-engineered packaged”

One panel discussion led to another – with the next on the topic, understanding the needs of consultants. It involved Ahamed Sab, Mulhim, Behloul and Zackariah, with Younes once again moderating. Younes asked, “What do we need from VRF and general suppliers?”

Zackariah, diving into the struggles faced by consultants when designing VRF systems, said: “One of the most important things is the sense of lack of transparency from the consultant’s point of view. When we design any system, we almost feel a sense of full control. However, with VRF systems, we often rely on suggestions from manufacturers which might not always be the best fit, initially.”

He discussed the necessity for improved collaboration between consultants and suppliers. Zackariah also highlighted the challenges posed by vendor-engineered packages, describing them as “black boxes”. He explained: “Even ASHRAE admits that VRF systems are heavily vendor-engineered. This means we have to trust the vendor’s proposals, which can be frustrating when we can’t validate their claims to the level we would like.”

Behloul, providing insights from a client’s perspective, stressed on the importance of client involvement in the design phase. “Clients need to move from being just clients to being involved in the design phase by hiring or training their engineers,” he said. “The consultant should ensure not only the right equipment is selected but also that commissioning is done properly.”

He recounted a past experience where clients faced numerous maintenance issues with VRF systems, highlighting the importance of proper installation and commissioning. “Sometimes, you see a code you don’t understand, and it takes ages for an engineer to come, costing additional fees,” he said. “This situation demands honesty and better knowledge transfer to the maintenance teams.”

Ahamed Sab, sharing his experiences with VRF systems in high-rise buildings, noted the limiting factors, such as static pressure drop calculations and avoiding excessive bends. He emphasised the importance of addressing these limitations, particularly in operational maintenance. He acknowledged the benefits of VRF systems in certain scenarii. “In medium-sized buildings with individual room temperature control and space-saving requirements, VRF is often the best choice, even if it involves some risk-taking,” he said.

Mulhim emphasised the need for clear requirements and transparency among clients, consultants and manufacturers. “As a consultant, I see myself in the client’s seat,” he said. “We must be clear about fresh air requirements, accessibility, maintainability and traceability.”

Mulhim stressed the importance of material quality and proper supervision. “Investing in quality materials and ensuring good supervision is crucial,” he said. “Substandard materials can jeopardise the entire system. We need a comprehensive checklist for everyone involved – clients, supervisors, designers and manufacturers.”

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