The impact of the F-gas cap and phase down legislation continues to take affect across Europe, and there will be a significant 30% reduction of CO2 tonnage being placed on the market, which will come into effect in January 2018; this is now significantly affecting the pricing of common refrigerants from the limited number of global refrigerant producers.
To compound the price effects BOC is currently experiencing, the refrigerant producers are now restricting the supply of blended refrigerants (400 series blends and R507A). The refrigerant press has recently noted, the substantial price rises from the refrigerant producers being experienced by the industry and BOC continues to receive increases on a monthly basis.
The refrigerant producers have, in addition indicated, that they no longer have a long term commitment to produce and sell high Global Warming Potential (GWP) refrigerants and are actively encouraging refrigerant users to move as quickly as possible towards the new generation HFO (Hydrofluoroolefin) refrigerant blends.
From November 1st 2017, BOC introduced a surcharge per kg for all refrigerants, this appears on the invoice as an Energy and Environment Surcharge (EES). The surcharge is based per kg, therefore this will need to be added to the existing price.
For example, if the cylinder price for R134a at £180.00, divide this by the contents 12kg = £15.00 per kg and if the surcharge for the month is £0.50p then add this to the kg price £15.50, total price for the cylinder £186.00.
Throughout 2017 BOC has received significant price increases from our suppliers across all major product lines, affected by the F-gas legislation. We continue to work hard to ensure supply continuity and absorb these cost increases where we can. However due to the continuing sheer magnitude of the recent increases incurred, BOC is no longer able to absorb these, and unfortunately we must now pass on a proportion of these costs to our customers.
In the light of the recent significant shifts in the refrigerant producer strategies, how to actively accelerate a transition to a medium low GWP replacement refrigerant should be considered. For any questions on refrigerant selection and evaluation process, please contact BOC on 0800 02 0800 or by email