Case study on industry innovation following the introduction of the equivalent carbon price on synthetic greenhouse gases Electrolux converts to natural refrigerant As part of the Australian Government’s Clean Energy Future Plan, the equivalent carbon price for synthetic greenhouse gases commenced on 1 July 2012. The introduction of the equivalent carbon price encourages industry to change its practices in order to reduce emissions of synthetic greenhouse gases, to use alternative gases and to improve the recycling rates of these gases. This case study highlights one effective change that has been implemented by industry. Electrolux has reduced the quantity of synthetic greenhouse gases used in the manufacture of its refrigerator range by choosing a natural hydrocarbon refrigerant. Electrolux is a global manufacturer of home and commercial appliances, including vacuum cleaners, refrigerators, dishwashers, laundry and cooking equipment. Electrolux has a manufacturing presence within Australia, and approximately 85 per cent of its refrigerators sold in Australia are manufactured locally. In 2008, Electrolux committed to using natural refrigerants in its refrigerators. Due to the high cost of re-tooling the conversion process and associated engineering work to ensure the safety of the product was phased in over several years. The introduction of the equivalent carbon price helped spur Electrolux’s efforts and 45 of Electrolux’s base models were converted to use the hydrocarbon refrigerant in October 2012. Currently, all 83 local models are manufactured using hydrocarbon refrigerant, and only one imported model remains unconverted. All models comply with the relevant Australian Standards including electrical, gas and refrigeration. The refrigerant utilised by Electrolux is R-600a, which is a naturally occurring gas (isobutane) and has a global warming potential of three, substantially less when compared to the commonly used refrigerant, R-134a, which has a global warming potential of 1300. The gas is highly efficient as a refrigerant resulting in energy savings across the product range. The re-tooling has improved efficiency and lowered costs for Electrolux in both its manufacturing and repair processes. The use of a hydrocarbon refrigerant is not the first time that Electrolux has replaced gases to improve environmental outcomes. In the mid 1990s, it began using cyclopentane in the manufacture of refrigeration insulation. Cyclopentane is low in cost and has a low boiling point, making it efficient to store and transport. When ready to be used, the low boiling point makes it efficient to evaporate. As product awareness increases, the underlying environmental and economic benefits of this approach will become even more apparent. Applying an equivalent carbon price to synthetic greenhouse gases has created an incentive to implement changes to reduce emissions. As demonstrated by this case study, the changes implemented can provide ongoing financial and environmental benefits. For further information regarding this case study or Electrolux’ products, contact Ian Forte, Regulatory Affairs Manager on 02 9317 9500 or visit www.electrolux.com.au For further information regarding the equivalent carbon price, go to www.environment.gov.au/equivalentcarbonprice There are Federal and state government-funded programs in place to support businesses with innovation in this space. For further information go to www.eex.gov.au/business-support/programs Photos courtesy of Electrolux. Photo: Electrolux hydrocarbon refrigerator, model EBM4307SC and Hydrocarbon Refrigerator with Side by Side Doors, model EHE5107SA Disclaimer The views and opinions expressed in this case study are those of the authors and does not necessarily reflect those of the Australian Government of the Minister for Sustainability, Environment, Water, Population and Communities. While reasonable efforts have been made to ensure that the contents of this case study are factually correct, the Commonwealth does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this case study. 2