In 1995, the Advanced Technology Program (ATP) co-funded a joint
venture project involving two U.S. companies, Air Products
and Chemicals, Inc., and Toromont Process Systems, Inc., to design, fabricate,
and pilot test closed-cycle air refrigeration (CCAR),
a new form of industrial refrigeration technology that uses environmentally
benign air as the working fluid. With ATP’s $2.1 million
investment, matched by $2.2 million corporate investment, this
joint venture developed CCAR as a cost-effective industrial refrigeration
technology for the ultra-cold (–70°F to –150°F)
range. Technology development and successful pilot testing were
completed in 1999. Business development and marketing are underway.
Market
analyses showed that the U.S. food processing industry
will be the most promising end market, where ultra-cold
temperatures are useful for:
- Reducing
weight loss from evaporation
- Reducing
dehydration, for better food taste and quality
- Improving
food safety
- Reducing
environmental emissions
This case
study estimates the following measures of national economic
benefit of the ATP investment in the food processing
application:
- Net
present value: $459–$585 million (2001 dollars)
- Internal
rate of return: 83–90 percent
- Benefit-to-cost
ratio: 220:1 to 280:1
Additional
quantitative and qualitative benefits are reported.
Based on
primary research and analysis completed during 2000 and
early 2001, the study concludes that:
- These
returns have a high probability of being realized.
- It
is unlikely that CCAR would have been developed without
ATP funding.
- The
above benefits can be directly attributed to the
ATP investment.
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