New Report Highlights Growth and Environmental Trends in Australia's HVAC&R Industry

The highly anticipated Cold Hard Facts 4 report has been released, offering an in-depth analysis of Australia’s refrigeration and air conditioning (HVAC&R) industry. Now in its 19th year, this series provides key insights, including equipment stock levels and refrigerant usage, while addressing the environmental challenges posed by the industry.

Industry Growth and Equipment Stock

The report reveals a significant expansion in Australia's HVAC&R sector, with equipment stock increasing by approximately 15% between 2016 and 2022. By the end of 2022, the industry had more than 62 million pieces of vapour compression-driven equipment in operation, supporting cooling, heating, and utility services.

Refrigerant usage also grew, with the total bank of refrigerant gases reaching an estimated 55,000 metric tonnes in 2022 - a 1.6% rise from the previous year. This underscores the sector's critical role in meeting growing demand for HVAC&R services.

Environmental Impact

The report highlights the environmental impact of this growth, noting that HVAC&R systems consumed 24% of Australia's electricity in 2022, making them one of the country’s largest energy users. This consumption contributed to 12% of Australia’s total greenhouse gas emissions, with 87% attributed to indirect emissions (electricity usage) and 13% to direct refrigerant emissions.

As the national electricity grid undergoes decarbonization, with emissions intensity dropping by 20% from 2016 to 2022, these indirect emissions are expected to decline further. However, the report notes that direct refrigerant emissions will likely rise as the industry transitions to lower-emission energy sources.

Refrigerant Management and Recovery

In 2022, direct emissions from hydrofluorocarbon (HFC) refrigerants totaled 10.6 million metric tons of CO2 equivalent. Efforts to recover and reclaim refrigerants saw 463 tonnes destroyed and 100 tonnes reclaimed for reuse. However, the report stresses the need for improved management of end-of-life (EOL) equipment to minimize emissions, particularly from older hydrochlorofluorocarbon (HCFC) systems being phased out under the Montreal Protocol.

Shift Towards Natural Refrigerants

The report highlights a steady increase in the use of natural refrigerants as the industry adapts to the Kigali Amendment’s HFC phase-down requirements. With regulatory pressure and growing environmental awareness, the HVAC&R sector is expected to accelerate its transition to more sustainable refrigerants.

Looking Ahead

The Cold Hard Facts 4 report serves as a critical resource for policymakers and industry stakeholders, guiding efforts to manage synthetic greenhouse gases and ozone-depleting substances while navigating the challenges of decarbonization.

The full report is available on the Department of Climate Change, Energy, the Environment and Water’s website.