Reflects confidence in the Qatar economy, company says

Drake & Scull International PJSC has announced the completion of the acquisition of Drake & Scull International Qatar, LLC (DSQ), a Mechanical, Electrical and Plumbing (MEP) contracting company in Qatar.

According to DSI, the decision to acquire DSQ came following a series of stringent financial and legal due diligence and feasibility studies carried out by SHUAA Capital, PricewaterhouseCoopers and Al Tamimi & Company.

“With this move, we have made significant progress in meeting our strategic objective to increase DSI presence in the region, thus enhancing our access to a broader range of construction opportunities,” said Khaldoun Tabari, CEO, DSI PJSC.

Calling the acquisition a reflection of the company’s confidence in the Qatar economy, with its tremendous longterm growth potential, Tabari added: “DSQ is a prominent player in the market with strong management that brings us complementary capabilities and greater geographical diversification. Reaffirming our ongoing commitment on profitability, the acquisition will also have an immediate positive impact on both our backlog and bottom-line performance, with strong potential for continued growth going forward.”

According to IMF forecasts, Qatar’s real GDP growth is projected to rise by seven per cent in this year alone, which will result in greater government expenditure on construction and infrastructure.

DSQ, which was established in 2006, has undertaken a number of prestigious MEP projects, including the West Bay Complex and QTEL Headquarters, and more recently, the New Doha International Airport project (NDIA). The company’s backlog stands at Dh166 million as of January 2010, which would be entirely executed and consolidated by DSI PJSC as of January 1, 2010.

Company rides on chilled water wave to register profit

According to the recently released first quarter 2010 consolidated financial results, Tabreed has registered a healthy profit.

For the three months ending March 31, 2010, Tabreed’s total revenue was reportedly Dh184.6 million – broadly similar to the corresponding period in 2009. However, the company reports that the net profits more than doubled over the same period in 2009 – from Dh21.7 million last year to Dh43.8 million in 2010. Excluding minority interests, Tabreed’s share of profits, it explains, was Dh40.4 million compared to Dh10.8 million in the previous year.

During the first quarter of 2010, Tabreed added four new plants to its portfolio, enhancing 27,000 TR of capacity and bringing Tabreed’s total installed cooling capacity to 422,100 TR across 40 plants.

According to Tabreed, the surge in profit was thanks to its core business of chilled water. As a result of three new plants coming online in 2009 and four new plants coming online in the first quarter of 2010, it recorded sales of Dh117.1 million – an increase of 91% over the same period last year. In effect, profits more than doubled – up by 109% – to Dh22.8 million. Margins for the chilled water business reportedly improved from 18% to 20%.

Tabreed’s wholly owned subsidiary, Gulf Energy Systems (GES), was the biggest contributor to the strong results, particularly reflecting GES commissioning the chilled water network on Al Reem Island and signing Dh60 million of new orders for the Sowwah Island network project.

Tabreed also added that the company’s contracting segment recorded sales of Dh 36.1 million – an increase of 37% over the same period last year. Profits for the segment were Dh15.6 million.

However, Tabreed’s manufacturing segment reported sales of Dh15.6 million – a significant decline from Dh81.4 million for the first quarter 2009 – due to a significantly reduced order book. Profits for the manufacturing segment were Dh0.7 million.

During the quarter, Emirates Pre-insulated Piping Industries was awarded three new projects, valued at approximately Dh25 million, which are expected to be completed by the second quarter of 2010.

Again, Tabreed’s services segment, which is involved in the design and supervision of building electrical and mechanical works, reported sales of Dh15.9 million – down by 23% over the same period in 2009 – reflecting reduced order books from the slowdown in the economy. Profits for the segment were Dh5.5 million – unchanged over the same quarter in 2009. According to Tabreed, as of March 31, its total installed cooling capacity is 422,100 TR across 40 district cooling plants. The Company expects nine more plants to come on stream in the remainder of the year.

Commenting on the overall positive picture, Sujit S Parhar, CEO of Tabreed, said: “The first quarter 2010 results demonstrate the significant progress we have achieved to date in reengineering the business and implementing corporate governance and process controls. We have a strong core business of chilled water and a steady pipeline of new plants coming on stream. We will continue to focus on improving operations and actively managing facilities. We acknowledge the challenges facing the business in the year ahead, and those associated with our recapitalisation process, but we are confident in the long-term prospects for the Company.”

Steve Ridlington, CFO, Tabreed, added: “In addition to operational improvements, we have also taken steps to implement a more rigorous financial discipline and focus on efficiency for our business, both of which are evident in the results announced today. Our efforts have translated into the best first quarter results in the company’s history.”

Reiterating Parhar’s comments, Khaled Al Qubaisi, Managing Director, Tabreed, said: “While we are very pleased with the first quarter results, which reflect the hard work of the management team under the direction and supervision of the Board, we recognise that there are challenges that face the business in the year ahead. We are confident, however, that the improvements in the company, and the way its business activities are conducted provide a strong platform to achieve the company’s objectives of improving performance, increasing profitability and maximising returns.”

Talking of the sensitive issue of recapitalisation, he said, “The initial discussions we have had with key stakeholders in respect of the recapitalisation of the company is positive and encouraging. The support from major 2008 Sukuk holders for the company’s decision to defer the May 19 payment is a strong endorsement of the steps being taken to complete the recapitalisation process.”

FINANCIAL HIGHLIGHTS – FIRST QUARTER ENDING MARCH 31, 2010:

• Total revenue was Dh184.6 million, compared to Dh189.7 million in the same period in 2009.
• Gross profit increased 11% to Dh88.9 million, compared to Dh80.2 million in 2009.
• Net profit doubled for the first quarter to Dh43.8 million, compared to Dh21.7 million in the same period in 2009, in part reflecting certain noncash finance gains associated with the company’s 2008 Convertible Sukuk.
• However, excluding these non-cash finance gains, underlying net profits increased 15% off the back of strong growth in the company’s core chilled water business.
• Chilled water revenue for the period was Dh117.1 million, a 91% increase over the same period in 2009, as new plants and customers came on line. Profits more than doubled to Dh22.8 million and margins improved from 18% to 20%.
• Basic and diluted earnings per share, attributable to ordinary equity holders of the parent increased from Dh0.01 in 2009 to Dh0.02 in 2010.

B Surendar

I have said this ad nauseam, but when the property market was racing at Shinkansen speed and when district cooling occupied lavish mind space, from Dubai to Doha and from Manama to Cairo, the odd lament about the need for best practices was lost in the noise, though in all fairness, it must be added that the International District Energy Association (IDEA) did release a Best Practice Guide for the industry at its Third International District Cooling Conference and Trade Show, in 2008 in Dubai. What was also lost in the melee was a call for better treatment of the end-user, who after all, plays such a critical role in building a positive perception towards district cooling.

The common excuse was, “Yes the end-user is important, but one needs to prioritise, considering there are a gadzillion opportunities to erect district cooling plants and to lower more and more pipes into trenches.” The excuse had the tacit approval of many that were ever so eager to capitalise on the momentum.

Today, the mood could not be more different. Starting from end-2008, when Lehman became a menacing symbol of the meltdown, to now, when there is considerable uncertainty engendered by floundering Greece and a handful of Euro-zone nations, district cooling has taken a pounding, the intensity of which has arguably intensified by the day. The viability of district cooling as a financial model itself has come for the severest test. While the challenge needs to be addressed, we ought not to lose sight of the original but unaddressed challenge – of satisfying the end-user, whose number, in recent times, has been dwindling. After all, a happy and convinced end-user is akin to an insurance, once the economy recovers in the region, and district cooling is once again in favour.

There could be no better time than now to appease the end-user, through a sensible and sustainable metering and billing regimen. There is an urgent need to increase the scope for the customer to save on his district cooling cost, through better allocation. In other words, there is a need for obligations to allocate the cost on consumption basis, fully backed by rules and regulations laid down by the Government.

It is imperative to define cooling charges, the way they ought to be defined. That way, there is an incentive for the end-user to save and, thereby, realise the oft-touted potential of district cooling. Then, once the dust settles, district cooling will have one less front to confront with as it begins the slow and onerous task of regaining lost ground.

B Surendar

Where there was once desert, there will now be what Saudi Arabia calls Economic Cities. With many built from scratch, these cities will fuel a massive demand for air conditioning products. David Garwood explains.

It might be going through a credit crisis like the rest of the world, but the construction industry in Saudi Arabia is still relatively buoyant. Despite recession, Saudi Arabia remains a very promising market for air conditioning products, due to its hot climate, high per capita income and rapid population growth.

Although there are some regional differences, air conditioning products are considered a necessity and are installed in almost all buildings throughout the country. The central region (around Riyadh) has the largest sales, accounting for around 35%, followed by the western region (around Jeddah), which accounts for about 25%. A further 15% of sales are in the east of the country (around Dammam), with the other 25% shared between all other regions.

The high sales of medium and large screw chillers is strongly led by the purchasing power of government-funded projects particularly, as private projects have dwindled during the downturn.

The government will be able to sustain a significant investment in construction projects for two years. That said, if the economic crisis continues, and oil prices remain at the current level, it is likely that government spending will sharply diminish. However, if by the end of 2011, the markets stabilise and oil prices recover, the central plant markets could return to very large growth rates, boosted by private investments in both commercial and residential sectors.

So, what exactly is selling in Saudi Arabia? To answer the question briefly, it is air handling units, chillers, packaged air-conditioning and refrigerants. The following elucidation will give a fair idea of the market situation for air conditioning products.

AIR HANDLING UNITS

The overview of the estimated central plant air conditioning market for 2009 by product type:

The last few years have seen the larger construction projects playing a major role in the development of the air handling market.

To create the futuristic economic cities, large university sites, modern hospitals and shopping centres, Saudi Arabia has applied strict regulations covering ventilation equipment. For this reason, the air handling market will get a major boost over the next decade. To cope with the very large air volumes required in most new buildings, predominantly medium to large and large units are used.

It is estimated that the penetration of heat recovery AHU models in 2008 was around 15% of the total AHU market by value. The main driver for these products is local legislation. For example, in Madinah, the authority demands that the exhaust air must pass through a heat- recovery device.

More recently architects and main contractors are encouraged to specify fan-coils for many new applications which will boost this market further.

The growth of the fan-coil market will closely mirror that of the chiller market (especially the market for screw chillers). However, due to increasing cooling capacities in mid-range applications, the fan-coil market will probably grow slightly above the average growth of the chiller market.

CHILLERS

Overview of the estimated packaged air conditioning market for 2009 by product type:

Large construction projects require medium to large chillers. Screws are the most important segment of the chiller market, representing more than a half of its value. Centrifugal chillers usually start at 1,750 kW, and are set to enjoy the highest longterm growth among all chiller types. BSRIA estimates that their share by value will reach 40% of the chiller market within three to four years.

While reciprocating chillers are still in use, their share is diminishing. Scroll chillers are mostly promoted by Carrier. Due to their very high price, absorption chillers are not popular in Saudi Arabia. These products cost around three times more than any equivalent substitute.

Interestingly, although Saudi Arabia’s district cooling projects have slowed, there are many new projects that are planning to use these systems. King Saud University in Riyadh, Girls University in Riyadh, King Abdullah Economic City and many others will fuel the demand for district cooling in the next several years. Large (7 MW) centrifugal chillers tend to be used to serve the district cooling systems.

PACKAGED AIR CONDITIONING

Over the last few years, sales of single-splits in Saudi Arabia have enjoyed high growth in all product categories and capacities. However, the lack of privatelyfunded investments in the residential sector almost halted this growth, which is highly dependent on the construction of new homes.

It is expected that the market for multi-splits will grow at a high pace, albeit from a very low base. Once the market reaches a few thousand units, the growth rate will start to follow the growth of the chiller market.

Variable refrigerant flow (VRF) air-conditioning systems are beginning to make their mark in the whole Middle East region. The market for these products is set to grow at the highest rate among all air conditioning products in the country. Until 2008, only Daikin was in this market, but The writer is a market researcher at BSRIA. This article is based on research carried out by Dusan Antonijevic for BSRIA. now, LG has introduced VRF products. Other competitors are likely to follow suit.

As the boom in the telecoms sector ceased a few years ago, and private investment dropped significantly in the second half of 2008, The close controls market growth will be moderate over the next few years. The market is divided between smaller units dedicated to small telecom shelters and larger units used for computer rooms.

VRF units are almost always used in the commercial sector (notably hotels and office blocks), although some small percentage of sales end up in the residential market, where affluent owners insist on having high-tech products.

REFRIGERANTS

Although the Saudi Arabian government ratified the Montreal Protocol, the HCFC phase-out target has not been fixed. SASO, the Saudi Arabian Standard Organisation, will drive the HCFC phase-out. However, due to the inability of local players to make the switch promptly, legislation has been put on hold.

All packaged products (apart from VRFs which are all R410A) sold in Saudi Arabia are fitted with the HCFC R22 refrigerant. Conversely, R134A is predominant in chillers. Global production is shifting away from R22 towards R410A, and this refrigerant will soon dominate the sector.

Ducted splits will start changing to R410A within the next three to four years because the local market will become increasingly dependant upon imports. When the switch eventually happens, the industry will go straight to R410A refrigerants, bypassing R407C.a

The writer is a market researcher at BSRIA. This article is based on research carried out by Dusan Antonijevic for BSRIA.

Though there are a couple of caveats to be considered, HFC blends are emerging as potential alternatives to HCFC22 for air conditioning systems, says Dr M Ramaswamy

Hydrochlorofluorocarbon-22(HCFC 22) known as R22 is a refrigerant commonly used in commercial, industrial and air conditioning systems. With effect from this year, manufacturers will not be allowed to use R22 as a refrigerant in refrigeration and air conditioning equipment as per the international protocol. This is an important milestone in the phase-out of R22. The air conditioning system manufacturers will only be able to use pre-existing supplies of R22 to produce new air conditioners and heat pumps. These would include R22 recovered from existing and recycled equipment.

The US Environmental Protection Agency (EPA) recently announced the final rules regarding R22 equipment installation and servicing, as well as production allowances of HCFC refrigerants. The EPA has reviewed several alternatives to R22. But there is no exact replacement to it, though researchers throughout the world are working to find suitable alternatives. One impediment is that every substitute refrigerant requires some change in the system design.

As far as the earlier CFC phase-out was concerned (mainly R12, used in refrigerators, automobile air conditioners, centrifugal chillers etc) and R502, substitute refrigerants with thermo-physical properties very similar to those of the original working media, were available. One could, therefore, replace the existing working media with something else, without significantly losing capacity or efficiency. However, phasing out refrigerant R22 in the existing machinery, has proven to be more complicated than phasing out CFCs like R12.

Usually, Ozone Depletion Potential (ODP) and Global Warming Potential (GWP) are the two issues to be considered while selecting a suitable alternative refrigerant, in addition to other thermo-dynamic and thermo-physical properties. The former is as per the Montreal Protocol and the latter is as per the Kyoto Protocol.

The ideal substitute for the original refrigerant should be non-toxic, non-flammable, chemically stable, compatible with the refrigeration system materials and lubricants and have transport and thermodynamic properties similar to or better than the original refrigerant. In addition, the ideal substitute should have zero Ozone Depleting Potential (ODP) and low Global Warming Potential (GWP). But unfortunately, so far, there is no such single substance, which possesses all these properties.

ALTERNATIVES

At present, the alternative refrigerants generally fall into three broad groups. They are: HCFC and HCFC blends; HFC and HFC blends and Natural refrigerants. Most of the HCFC blends have been developed to provide a low-cost retro-fill and are particularly useful in DX CFC systems. Besides, in any case, HCFCs are to be phased out, and hence, this group does not merit much attention.

Natural refrigerants like ammonia and hydrocarbons have excellent thermodynamic properties, but flammability and compatibility with materials used for refrigeration system design limit their applications to only certain types of systems. However, this group is being supported by researchers, especially from the European Union due to its low GWP effect.

The European Union’s F-Gas Regulation No 842/2006 became law on July 4, 2006. F-gases include all HFC refrigerants, such as, R134a, and blends containing FGases such as R407C, R410A and R404A.

Handling, recovering, supplying, installing, manufacturing or owning equipment containing HFC refrigerants in stationary equipment in any country in Europe have legal obligations under the F-Gas Regulations. Recently, an environmental pressure group has attacked British supermarkets for failing to phase out the use of hydro fluorocarbon (HFC) gases in refrigeration systems. Supermarkets in the UK are seriously planning to make their stores HFC-free in the coming years.

REFRIGERANT MIXTURES

It is apparent that there are a limited number of pure fluids that can function as substitutes for CFCs and HCFCs. Mixing of refrigerants allow adjustments or tuning of the most desirable properties to provide suitable alternatives. In the process, however, the other properties are also altered. The ultimate objective is, of course, to develop a mixture and obtain the perfect fluid with all the desirable properties within the operating range.

Mixtures provide a flexibility of modulating the capacity by varying the composition of the constituents. Refrigerant mixtures are solutions, that is, they have constituents which are equally dispersed and cannot be mechanically separated. There are three categories of mixtures.

Azeotropes

This class of refrigerant mixture behaves as if it were a single component during its phase change. It needs to be borne in mind that in the phase change, the proportion of each constituent in the new phase is the same as in the original phase. This property is of great use when the refrigerant mixture leaks and it has to be recharged.

Near-azeotropes

Azeotropes rigorously exist at only one composition for a given temperature and pressure. However, for all practical purposes, minor deviations are acceptable for many refrigerant systems. The term, “Nearazeotropic Mixture” (NEARM) is used for this broader range. The advantage of utilising this category is that many more possible alternatives become available.

Non-azeotropes

Non-azeotropes change their composition continuously during phase change. These mixtures do not possess a sharp boiling point, but boil over a range of temperatures. This feature is intimately tied to the improvement of a system’s efficiency, if appropriate hardware changes are made to the system heat exchangers.

The change of temperature with phase change is called Temperature Glide. When heat transfer fluids exchange heat with Non-azeotropic Refrigerant Mixtures (NARMs) in a constant current flow mode, the thermodynamic irreversibility can be reduced by matching the temperature glide (NARM side) against the temperature drop (Heat Transfer Fluid side), resulting in an increase in the coefficient of performance.

Non-azeotropic blends of refrigerants are seriously being considered as replacements for environmentally damaging pure refrigerants. Generally, the following criteria are used to select a mixture as refrigerant:

(i) Volumetric capacity
Unless major changes in the compressor are made, the volumetric capacity of the mixture should be close to that of R22 in a single evaporator system, especially for the drop-in tests. For a given mixture, this requirement suggests that at least one of the components of the mixture should be more volatile than R22. This means that the normal boiling point of the component should be less volatile.

(ii) Gliding temperature difference.
Theoretical and experimental research has shown that the increase in the COP with non-azeotropic mixtures largely comes from correctly matching the temperature glides of the refrigerant and heat exchanging fluid stream.

HFC BLENDS

We will now analyse the HFC blends group, as a majority of air conditioning manufactures in the United States prefer these refrigerants. HFC blends have zero OD, but still have noticeable GWP.

Around 1990, global warming resulting from the release of man-made gases became a major environmental issue. The largest contributor to this is carbon dioxide from burning of fossil fuels. Although the GWP ratings are slightly higher for HFC-based refrigerants, compared to R22, they do not provide an accurate representation for air conditioning systems that have both direct and indirect effects on global warming.

The direct effect, which GWP measures, comes from refrigerant release into the atmosphere through leaks. The indirect effect is a function of energy consumption necessary to produce cooling.

Air conditioning systems using electricity indirectly influence global warming through the release of carbon dioxide and other greenhouse gases from combustion of fossil fuels at the electric generating station. Researchers, therefore, have developed an index called the Total Equivalent Warming Impact (TEWI) that considers both the direct and indirect global warming effects of a refrigerant. However, since HFCs have high GWP (although lower than those of CFCs), every effort must be made to prevent the leakage of these refrigerants while considering them as alternative refrigerants. Zero flammability and zero toxicity are the two favourable properties which make HFC-based refrigerants a popular alternative in both existing and new systems.

There are many HFC blends available in the market. However, we will restrict our discussion with R410A in detail and R 407C in brief because, these two HFC blends are emerging as potential alternatives to R22.

R410A is emerging as a substitute for new systems while R407C is emerging as a potential retrofitting refrigerant. From the thermodynamic analysis of the properties of these refrigerants, it is observed that the volumetric cooling capacity and a vapour pressure curves are close to that of R22. In theory, while reviewing various literatures, many have argued that these refrigerants would be a suitable substitute for R22.

R410A:
R410A is a blend of HFC-32 and HFC-125 (50/50 wt %). It is an azeotropic refrigerant. It performs very much like a single component refrigerant. The physical and chemical properties of R410A are very similar to those for R22, as well as most of today’s HFC refrigerants.

In 1996, the EPA formally recognised R410A as a substitute for R22. Leading chemical companies have made a strong effort to sell R410A to air conditioning manufacturers as a longterm replacement for R22. Following are some of the positive points for considering R410A as an alternative to R22, especially for new air conditioning systems.

Higher capacity equipment

Equipment designed for R410A has demonstrated up to 40% greater capacity when compared to current HCFC-22 equipment. It allows for smaller equipment sizes. Majority of the customers prefer smaller size equipment.

Easy servicing

As it is an azeotropic mixture, it behaves almost like a pure refrigerant, and therefore, it can be repeatedly topped off.

Safe and easy to use

R410A has an A1 ASHRAE safety classification, which means, it has lower toxicity and no flame propagation.

Higher efficiency

R410A systems exhibit about 10% increase in the Coefficient of Performance. Some of the R410 properties are given in Table 1:

Figure 1 above shows the comparison of pressures of R22 and R410A in a simple refrigeration system.

R410A operates at a significantly higher pressure than R22. This may seem to be a negative characteristic of this refrigerant. But this negative point has forced designers to come up with more robust designs and superior control and protection techniques. Because of the higher pressure for R410A, most system components have been designed with increased wall thickness. Thanks, therefore, to the robust design, the system reliability has improved. R410A pressure drop is also less than R22.

A LEED pre-requisite is that HVAC equipment must not use a CFC refrigerant. R410A is one of the green refrigerants and can earn extra LEED point. But it has to be borne in mind that R410A cannot be used as retrofitting refrigerant applications because of the higher pressures associated with it.

SERVICING AND SAFETY

Most R410A systems use a Polyolester lubricant (POE). It is to be noted that POE lubricants readily absorb moisture, and therefore, minimise exposure of lubricant or internal parts of the system to the atmosphere. Proper care should be taken while handling lubricants of this refrigerant. Following are a few tips to handle the POE lubricant:

• Do not store POE oils in plastic containers. Use glass or metal containers instead.
• POE oils can cause skin irritation. Gloves need to be used and care should be taken when handling the lubricant.
• Wash any exposed skin area with soap and water to remove the lubricant.

Electronic leak detectors can be used for detecting any leak. But the detector must be capable of detecting a HFC refrigerant. It is to be noted that older leak detectors designed for R22 may not be sensitive enough to detect R410A. Use of halide torches should be avoided as they cannot effectively detect R410A refrigerant leak from the system. Also, using soap solution is not advisable as small leaks may not be detected with it. But UV-sensitive dyes can be used effectively.

Service technicians who work on R410A systems should use approved service tools to handle the high pressures of the system. These include gauges. Manifold gauge sets require an 800 psig high-side with a 250 psig lowside and all hoses should be rated for 800 psig. Recovery cylinders require a 400 psig service pressure rating and use cylinders approved for R410A.

R407C

R407C has a potential use in retrofit applications, after the necessary system changes have been made. It is a blend of R32, R125 and R134a (23%/25%/52%). It is a zeotropic compound. It has been formulated to closely match the properties of R22. Table 2 shows a few of the essential properties of R407C. It is one of the green refrigerants and can earn extra LEED point. (See Table 2)

R407C has a large temperature glide, which makes it incompatible with some heat exchangers, especially with flooded heat exchangers. Therefore, this refrigerant should not be used in centrifugal chillers. This should be used in plant with counter-flow plate heat exchangers.

R407C’s ODP is zero and GWP is 1526. It has A1 safety classification. Its thermodynamic properties make it suitable as a refrigerant for medium and high temperature applications in residential and commercial air conditioning. We can use R407C in R22- equipment without losing either capacity or efficiency significantly.

As R407C has similar properties to R22, it will be possible – with few modifications – to use it in the same equipment designed for use with R22

While retrofitting the R22 system with R407C, one can observe the following:

• Higher head pressure
• Lower compressor superheat
• Lower refrigerant temperature difference across the condenser
• There may be frosting at the evaporator inlet

Following points are to be considered while dealing with R407C, especially during serving air conditioning equipment:

• Oil must be compatible with all equipment used with R407C
• R407C has to be charged in the liquid state. This implies that some sort of chilling device (usually ice) would be required in case the unit needs to be re-charged at the site.
• The condensing pressure of R407C is about 10% higher. Gauge manifolds for service must be suitable for the higher pressure.
• All other precautions as explained for R410A are also to be considered.

CONCLUSION

When the Montreal Protocol has phased out CFCs in the developed countries and has a regulatory regime for the phase-out of HCFCs, it is still is a major problem in developed and developing countries. The global market will continue to develop and introduce new refrigerant chemicals. When replacing CFCs like R12 in existing machines was an issue, a substitute was found (R134a) with thermophysical properties so close to R12s that a unit subject to a refrigerant retrofit to it presented essentially the same performance and behaviour as before the retrofit. But when it comes to replacing R22 in the existing machinery, things become complicated due to the fact that none of the commercially available substitutes have thermo-physical properties very similar to that of R22.

Thus, using any of them in existing facilities will, in many cases, imply not only changes in capacity and efficiency, but also new types of behaviour, either not experienced with R22 or previously not considered significant. Therefore, proper care and professional approach should be adopted while selecting alternative refrigerants to R22, both in new systems as well as in the existing systems.

The writer is Technical Expert, Royal Estates Office of His Excellency, Head Of Royal Estates Affairs, Muscat, Sultanate of Oman.

The market for outsourced facilities management is growing at a fast pace in the region, thanks to the advantage it offers, in the form of reduced overhead costs. Frost & Sullivan ’s Ramesh Kumar has the report .

The Middle East is home to some of the world’s construction wonders, all built with the help of the once burgeoning GDP to support the growing population in the GCC states. Countries in the GCC have adopted optimum use of technology and capital to make the Middle East the modern construction capital of the world.

With the arrival of multinational corporations, the demand to adopt and retain international standards is evident in all areas of society. This has induced a need to maintain facilities and increase the lifecycle of the building. Though the actual advantages of hiring a professional facility management company to maintain buildings and assets is still not acknowledged, the market for it is growing at a phenomenal pace.

The market for outsourced facilities management has been growing at an exponential pace since the year 2000, mainly fuelled by the need to concentrate on core business activities. However, there was a downward revision of market statistics influenced by the after-effects of the economic crisis in the Gulf. But some end-users were fully aware of the monetary benefits of involving a professional facilities management company. In fact, most end-users have begun involving them at the design phase of the building to improve the lifecycle of the asset and to efficiently manage operational costs in the long run.

Despite a growing demand for it and its increasing popularity, this industry was severely impacted by the economic recession, which spread across the region, starting in Dubai. However, some facilities management companies were well-insulated against this downturn, mainly due to the need for reducing costs; FM service providers help to reduce the overheads. Mostly, the providers who faced limited impact of the downturn were the ones who had a healthy order book and several long-term contracts in hand.

Though the number of contracts in 2008 was equal to that in 2007, the value was small. Moreover, many new buildings were almost 50% complete, and yet did not award a contract to any facilities management service provider, as developers in the region were sceptical about entering into long-term and high-value contracts.

The total market for facilities management in the Middle East was around $3.5 billion in 2008. The market growth rate slowed due to the sub-prime mortgage crisis that affected the global business environment. Some new construction projects were put on hold, and hence, new contracts were few. However, the growth and scope for facilities management services in the Gulf States are still high.

• The facilities management (FM) industry in the GCC is structured into three groups: single service providers, bundled service providers, and Integrated Facilities Management (IFM) service providers.
• There is a large cluster of companies that provide single services and specialise in it. Most single-service companies are beginning to partner with IFM providers in order to have safe order books. However, the demand for single services still remains strong as endusers value their experience and professional service.
• There are more than 30 domestic and international companies that provide FM services in the GCC. There are over 50 service providers that operate in the unorganised sector and will continue to contribute to the FM market growth.
• The IFM market is expected to grow rapidly as more clients understand the ease of doing business with FM providers under a single contract. This will also help bundled services to grow.
• FM services in the GCC grew at a phenomenal pace until the recent recession. With the construction sector being one of the largest contributors to the FM market’s failure in Dubai, the outsourced FM market was adversely affected like in all the other countries. There was a sharp fall in the growth rate of the market.
• FM growth in the Middle East is expected to gain momentum once the construction industry revives in all the regions, especially in the UAE. Dubai and Abu Dhabi have been contributing most of the revenue for the UAE market. This trend is likely to shift and start focusing on emirates such as Sharjah and Ras-Al-Khaimah, as they have started attracting multiple foreign investments.
• Oman and Kuwait have not grown drastically. In addition to this, the economic downturn adversely affected the FM market in these countries. The growth is likely to stabilise in all the regional markets by the end of 2010 due to the economic recovery and increasing awareness about FM services.
• The overall facilities management market in the GCC is expected to grow at a CAGR of 18% from 2008 to 2013. There was a drop in the growth rate in 2008, mainly due to the economic crisis in the Gulf, coupled with crash in oil prices.
• The demand for facilities FM is growing strongly and moving in the right direction, with the need for professional maintenance evidently increasing. Builders and facility owners in the region are becoming aware of the commercial and environmental advantages of involving a facilities management firm to address their maintenance needs.

Ducts are traditionally made of sheet metal, which is installed first and then lagged with insulation. If a ductwork is done from rigid insulation panels it need not be insulated further and is installed in a single fix. Pre-insulated aluminium ductwork is light and easy to install.

The following are some of the various ducts:

Fibreglass duct board
This has built-in thermal insulation and its interior surface absorbs sound, thereby helping the HVAC system to operate quietly.

Flexible ducting
Also known as “flex”, this duct has a variety of configuration. For HVAC applications, it is a flexible plastic over a metal wire coil – becoming a round, flexible duct. This is convenient for attaching supply air outlets to the rigid ductwork, but the pressure loss through flex is higher than for most other types of ducts.

Fabric
Also known as air socks, duct socks or textile ducts, fabric ducts give even air distribution throughout the entire length. These are made of special permeable polyester material. When fitted above a ceiling, fabric ducts must be PVC coated, so as to sustain high-performance without a regular maintenance.

Here are the various components of a duct system:

Vibration isolators
These are inserted into the duct immediately before and after the air handler, whose blowers create vibration, hence, noise. These are made of rubberised, canvas-like materials that mute the vibration to the attached ducts.

Take-offs
When a main duct branches into many subsidiary ducts, the fittings called “take-offs” divert a small portion of the flow from the main duct to each branch duct. The fittings, stuck into openings cut into the wall of the main duct, have small bent metal tabs that retain the take-off on the main duct. Their round versions are called “spin-in fittings”.

Stacks, boots and heads
These are vertical ducts of very wide and thin rectangular or oval sections. A “stack boot” at the bottom provides a transition from a rectangular duct to a thin wall-mounted duct while a “stack head” provides a transition back to ordinary ducting. A “register head” provides the transition to a wall-mounted air register.

Volume and control dampers
This provides the adjustment of the volume of air flow to various parts of the system.

Smoke/Fire dampers
These are found in ductwork, where the ductwork passes through a firewall. A probe in the run of duct detects smoke within the duct system which is supplied from the air handing unit, for instance.

Plenums
These are the central distribution collection units for an HVAC system. The supply plenum directs air from the central unit to the intended rooms while the return plenum carries the air from large vents to a central air handler.

Terminal units
These are fan-powered mixing boxes or VAV “boxes” of either single or dual duct. There is usually one terminal unit per thermal zone.

Air terminals
These refer to supply air outlets and “return” or “exhaust air inlets”. These are mainly used for appearance purposes, but some also carry air filters (thus known as “filter returns”).

They are used in HVAC to deliver and remove air, ensuring acceptable indoor air quality and thermal comfort. As such, they form a key part of the central air conditioning system. As such, adjusting the air condition and appearance of buildings depend largely on duct quality. The needed airflows like supply air, return air and exhaust air have a lot to say about a project’s sustainability, depending on the type of ductwork (duct system) and duct design (planning or laying out) being employed.

A redesign carried out by Lee Company, a US-based design/build mechanical contractor, on Georgia Tech’s Campus Recreation Center, for instance, managed to cut the project’s HVAC/ plumbing budget by over $100,000. This involved using fabric air dispersion duct, which replaced the originally specified double-wall round aluminium. Lee also threaded fabric duct through bough trusses in the centre’s fourth-floor gyms, and branched out for complete floor coverage.

One of DuctSox’s projects at the Red Sea Mall, in Jeddah

FABRIC DUCT

Fabric ducts have not been unheard of in the Gulf and the Middle East, but customers here need a lot of persuasion from manufacturers and distributors to use them for cost-efficiency and sustainability. “Still the customers/clients are not familiar with fabric ducts,” says Tawfiq M Attari, global sales and technical director for the MENA (Middle East and North Africa) market of DuctSox. “But, as we now have a lot of references, the clients start to like the idea of using fabric duct in their projects.”

Not only do they save on material and labour costs, fabric ducts do not as well require interior insulation and exterior epoxy coatings, which ward off condensation and corrosion, respectively, in natatorium (structurally a separate building containing a swimming pool) environments. In a case study on the project, Michael Saunders, one of its engineers, says, “Fabric duct offers a bonus over metal in natatorium environments because pool chemicals do not degrade polyester fabric material.”

The Sedona fabric duct that Lee had used in the $45-million, 289,000-square-foot (sq ft) recreation centre at the Georgia Institute of Technology, in Atlanta, was also manufactured by DuctSox, in Dubuque, Iowa. The duct’s comfort-flow air dispersion and linear vents had helped cut both material and installation costs. The gray, fabric duct with a diameter of 56 inches distributes dry, conditioned air along a wall of exterior windows and three 36-inch diameter ceilinghung branches on the entire length of the pool surface.

The duct’s length hanging 50 ft over the pool, which was originally built for the 1996 Summer Olympics held in Atlanta, features DuctSox’s Sonic Vent technology at three custom-manufactured positions of one, five and 11 o’clock. This is aimed to distribute air evenly while avoiding deflection against the 13-ft-deep ceiling joists running in-between. Enclosing the mammoth pool is the 100,000-sq-ft Aquatic Center, which also presented a host of HVAC design challenges for Georgia Tech, Lee Company and Hastings + Chivetta Architects.

Tawfiq M Attari

“The trick was to get high enough velocity from the fabric duct, but not so much that unnecessary evaporation is caused at the pool surface level,” Saunders says of the ductwork and design for the project, whose anchor is the 13,300-sq-ft pool. In a case study, he adds: “In the case of Georgia Tech, we like the balance we’ve achieved.”

Open-ceiling application projects similar to Georgia Tech’s recreation centre holds great promise for the Gulf and the wider Middle East market, says Attari, although it’s not yet as big as in the US or China.

“But it is growing fast, and we are trying to open new markets by innovating fabric duct, such as our Under Floor and our Kitchen Sox, for use inside the office buildings,” he adds, revealing that the company has already got a “very good share” of projects in the UAE and the Gulf.

In an e-mail interview, Attari stresses that DuctSox, whose MENA offices are in Riyadh and Amman, is planning to open new technical and sales offices across the MENA region, to take advantage of the growing market. He remarks, “We believe that Kuwait, the UAE, Qatar and KSA [Kingdom of Saudi Arabia] are the biggest markets due to the big projects under construction in these countries.” The company has ongoing projects in the UAE (Nestle Factory, Phase 2) Qatar (new Doha International Airport) and Jordan (Royal Boxing Arena).

GREEN DUCT

As its duct is 55% recycled, DuctSox is proud and confident that a product’s eco-friendly characteristics will further enhance a manufacturer’s market share. One of DuctSox’s “best advantages” is its innovative products, the latest of which are the Chemo Sox (for chemical factories), Under Floor fabric duct (server rooms and high-rise buildings) and Kitchen Sox (kitchen areas). The company makes it a point to produce two or three new products or innovative product ideas a year to advance in a competitive market.

There is, indeed, a stiff competition out there that manufacturers and distributors need to contend with through competitive prices and by being in contact with their customers. Companies must get the feel of what the customers want or are looking for, says Syed Arshad Ali Shah, formerly marketing executive of Dubaibased Al-Mira Steamatic. He adds that, for instance, customers want ducts with light materials for easy installation and those which they can open easily for regular cleaning.

He also stresses that manufacturers and distributors conduct information and education campaigns on the importance of maintaining air quality within buildings and other residential, commercial and manufacturing facilities. But the companies themselves must improve their lot, Ali Shah says, noting that some distributors here lack the capability and resources to carry out big projects, such as those in hotels and retail facilities.

Attari says DuctSox is almost the only duct manufacturer he knows which visits the construction sites for installation training and supervision without charging the customers or contractors. “And we make the visits, for the customers to give them the best solutions for their projects all around the Middle East,” he adds.

“Saudi Arabia is the biggest country in the Gulf area and it has the biggest projects, and we are working sideby- side with the contractors in KSA to make our market bigger in KSA.”

In what is touted to be the HVACR industry’s first refrigeration manifold (pressure) gauge sets with sight glasses for “Seeing Is Believing” diagnostics in air conditioning, refrigeration, and appliance equipment, Cliplight Mfg, an HVACR tool, leakdetection and refrigeration sealant manufacturer, has introduced Vision and Firefly.

According to the manufacturers, the patent-pending Cliplight Vision makes refrigerant/oil inspection quick and easy with a deep well, see-through sight glass feature that uses ambient light for illumination.

Also patent-pending, FireFly, is claimed to combine a built-in 2x magnifying sight glass with both white or blue LED backlighting to illuminate refrigerant, contaminants and to detect whether or not the system has UV dye. The backlight is operated by an on/off switch that illuminates the sight-glass for more accurate refrigerant system diagnostics. It increases refrigerant visibility by 75% when combined with the magnification feature. Pressing the on/off switch a second time activates the blue light and illuminates any refrigerant UV dye traces. Pressing it a third time returns the module to the off mode.

Dubbing Firefly and Vision the diagnostic tools of the HVAC industry, Cliplight Mfg highlight the other gauge features of the products:

• Conical piston manifold valves that allow even-flow throttle adjustment and minimise refrigerant surges that are common among ordinary piston or valve designs.
• Class-1.6 steel case construction with a bronze tube and brass socket.
• Face dials also designed to display R-410A, R-22, and R-404A refrigerants.
• Ratchet hanger that locks an intended positioning in place.
• Ergonomic heavy duty handles with calibration rings that display valve position.
• Fine throttle control valves for liquid charging of blended refrigerants.
• Can be used with all CFC, HCFC and HFC refrigerants.
• Compatibility with all standard refrigerant hoses.
• Limited lifetime warranty on manifold bar and valves.