One of the most topical sessions featured at ARBS was the refrigerant levy, with a panel of speakers presenting differing views.
The panel was moderated by AIRAH CEO Phil Wilkinson, with the supplier’s perspective delivered first by Louise McCann, commercial manager at A-Gas.
McCann said most of the liability for the levy will be placed on the importer, which is why A-Gas has been working hard to try to mitigate some of the risks.
As one of Australia’s largest importers of refrigerant, McCann said the levy had already added significantly to the cost of A-Gas’ business even before its introduction on July 1, 2012.
She said the value of some refrigerants could increase by as much as 500 per cent.
“It is more valuable with the levy so we have increased security provisions; more security is also necessary because we are storing more refrigerant on site,” McCann said.
“This has also increased insurance premiums, plus there is the need for additional staff training.
“We are already witnessing the impact of the levy even before it commences next month.”
McCann said there was still a lot of uncertainty in the marketplace that won’t become clear until next year.
She said post-July, the issue won’t just be about rising prices but market transitioning as low GWP products gain more attention.
“There are a lot of products still under development that will come onto the market in the next two years,” McCann said.
Providing a technical perspective at the seminar was Peter Brodribb, who has co-authored a range of HVAC&R research papers.
Brodribb illustrated the working bank of refrigerant in Australia, with 32 per cent made up of R134a and 30 per cent R22. CFCs account for only two per cent.
About 60 per cent of the bank is used for stationary air conditioners, 23 per cent for mobile air conditioning units and 11 per cent for non-domestic refrigeration.
To deal with the levy and the new carbon pricing environment, Brodribb made a number of recommendations.
Firstly, he said organisations should improve refrigerant containment by identifying and eliminating leaks.
“Natural refrigerants don’t have a levy so start making the move to low GWP products,” Brodribb said.
“These steps can be taken while waiting for new technology to hit the market.”
With the market changing, Brodribb said to beware of snake oil salesman.
He said low GWP solutions will emerge in the next five years.
One example is the joint initiative between Honeywell and DuPont, which are working together to develop new classes of low GWP refrigerant.
EE-Oz Training Standards Australia senior technical project officer, Noel Munkman, talked about the training gap that currently exists for workers covering system design, installation, servicing and repair of natural refrigerants.
Munkman said the training body had developed training packages for national qualifications to meet the needs of the changing market.
He said there is a project underway to upskill 25,000 licensed workers that covers safety, service and repair.
It has begun with a national ‘train the trainers’ program starting in May and will continue through to the end of the year.
The director of the federal government’s ozone and synthetic gas team, Patrick McInerney, was also in attendance to answer audience questions.