F-gas as we know it has changed forever.

The world is at a critical turning point, with environmental initiatives being implemented left, right and centre in an attempt to slow and combat the effects of global warming. 

This year, we are likely to see more industries than ever begin to play their part, as we move into a new decade of industrial innovation and technological advancement with the aim of manufacturing more sustainable products and adopting eco-friendlier mindsets. 

Driven by the EU and The Kyoto Protocol, as of January 2020, we welcomed new F-gas regulations that will phase out harmful refrigerants and transform how the water damage restoration (WDR) industry works forever... 

What are F-gas Regulations?

Fluorinated Gases (F-gases) are a collection of man-made gases used across a wide range of industrial products, processes and applications. Because they aren’t known to harm the ozone layer, they’re often used in place of substances that do, so when they were introduced originally, they were done so with the very best intentions. 

However, we’ve come to learn that F-gases act as greenhouse gases, remaining in the atmosphere for anything from a decade to a millennia and contributing significantly to global warming as a whole.

Though F-gases currently account for only 2% of Europe’s overall greenhouse gas emissions, that’s a massive 60% increase from where they were in 1990. This is measured by something called ‘Global Warming Potential’ (GWP). As part of the regulations, any new products manufactured and placed on the EU market from January of this year must have a GWP of 150 or less. 

We are constantly reminded of how CO2 emissions contribute to global warming, but when you consider that F-gases have a GWP that’s 23,000 times more than CO2, it certainly highlights how important these legislative changes are in making a real difference to the future of our planet. 

What do the regulations mean for WDR Contractors? 

As many manufacturers scramble to make their ranges compliant, contractors may find they’re left unable to access more of the products they were using in previous years. 

Though you’re able to continue with the products you currently have, anything new will have to fall within the outlined F-gas regulations. If you require maintenance on your legacy equipment, in theory this should become increasingly hard as the year progresses and the pressure of the phase out continues. We expect the cost of gases such as R410A to increase ten-fold and their availability in the market to significantly reduce, making ongoing maintenance a headache for the business. 

Q1 in particular could see a much lower availability of drying solutions and, with these months expected to be the busiest of the year, contractors should consider taking action now. 

Because the new products on the market will have some pretty significant changes under the hood, drying times could be affected as water removal rates potentially reduce and the number of machines required to deliver the same drying performance could increase. Consider how this is going to affect your business, and what you need to do to educate insurance companies about these changes, so you can work together to agree the most cost-effective way of moving forward. 

If you are still being offered equipment that sits above the 150 GWP threshold, then please remember it is potentially being placed on the market ILLEGALLY. 

What do the regulations mean for WDR Insurance companies?

When a busy period strikes, your contractors will be under increased pressure to source equipment that can sufficiently fulfil your clients’ needs. Take into consideration how many manufacturers have fallen behind in producing new solutions to meet the F-gas standards (hint: it’s most of them). 

Usual suppliers won’t be allowed to place anything on the market that fails to comply, and the strain will be particularly apparent in Q1 and Q2 while these manufacturers look to redevelop their ranges. We are one of the few manufacturers that have been preparing for this over a 2-year period, and even though our products are ready to go, you will need to consider that your contractors will now have to factor in a wide range of specification changes that impact on drying performance.  

Potential reductions in water removal rates, adjustments to operating temperature ranges, and the logistical challenges of handling equipment with new gases inside (propane being one solution), will place significant strain on contractors as we enter a new era of drying solutions. 

Taking an environmental focus, insurers should be embracing the F-gas changes and actively supporting a transition in the industry from older equipment that has a negative impact on the environment to a more sustainable solution. Contractors who also embrace these changes should be supported, and rewarded, for their efforts to support sustainability in the damage management industry. 

What do the regulations mean for WDR Manufacturers?

As manufacturers ourselves, we feel we have a personal responsibility to make sure we’re on top of legislation. We also take great pride in doing all we can to contribute to reducing the environmental impact of our equipment and our industry as a whole. Many manufacturers have unfortunately missed the boat to supply compliant products and it’s likely that many of them will only be ready from Q2 and beyond. 

Our teams embarked on a 2-year programme that saw us evaluate, optimise, reinvent and in some cases discontinue products that didn’t fall in line with the impending F-gas regulations. Because of the way F-gas works, it’s near-on impossible for manufacturers to salvage their refrigerant inventory. This means a complete re-design of equipment, full system recalibrations and CE approvals, and carefully selecting a lower power, more eco-friendly refrigerant gas alternative. 

What does the future hold?

While the water damage restoration industry alone can’t save the planet, the move to introduce these regulations is a monumental step in the right direction. While to some, I’m sure these changes feel like they are presenting additional barriers in an already complex industry. But this innovation in technology and in the way we work will only serve to shape the future of our businesses. 

Of course with innovation comes financial outlay, and a new way of thinking to ensure this is viewed as a long-term investment and not just an expense. By investing in your equipment today, you are investing in not only your business’s future, but the entire planet’s. Over the next year or so, refrigerant products will go through a pretty significant change, so it’s important you don’t let yourself get left behind. 

What can be done right now?

First of all, don’t panic. Do your research and speak to an expert who can help you make sure the equipment you procure is compliant. It’s important to learn how to spot those that meet the standards and those being placed on the market illegally, as it’s not always obvious. Gases such as R410A, widely used in the water damage restoration industry, have a GWP that is ten times greater than the new legal limit. 

If you are a contractor set to feel the financial squeeze of these changes, try to see this as an opportunity to diversify your offering, and work with insurance companies to educate them on how you will be affected so you can renegotiate any less than desirable payment structures. The last thing they will want to do is leave their clients hanging, so it’s just as much their responsibility as yours to ensure that the right tools and processes are in place to deal with claim responses effectively. 

For insurers, it’s important to open up communication lines with your contractors, understand the situation surrounding F-gas and get to grips with how it’s going to affect the WDR industry. There may have been a time long ago when the pricing methods of some contractors had come into question, but now more than ever the relationship requires trust, two-way education and a drive to move forward and innovate together. 

If you’re a manufacturer, and you’re reading about F-gas for the first time – you’ve got a LOT of work to do. Luckily, the article’s over so you can get cracking. 

You can read more about F-gas regulations and how the Dantherm Group has welcomed this important initiative here. If you have any questions about anything I’ve discussed here or how it might affect you as a contractor or insurance company, just drop me a line.