The Turnbull government yesterday announced the successful passage of legislation to phase down HFCs, which comprise up to 2% of Australia's greenhouse gas emissions, particularly by the LNG producers which are just wrapping up $200 billion worth of new construction.

 

While powerful synthetic gases used in refrigerators, air conditioners, fire extinguishers and insulating foam which can be thousands of times more potent than carbon dioxide, HFCs are also used in their refrigerants.

 

The phase-down of HFC imports under the Ozone Protection and Synthetic Greenhouse Gas Management Amendment Bill 2017 will start next year and reach an 85% reduction by 2036.

 

Australia co-chaired the negotiations in Kigali, Rawanda, last year that led to a global agreement of all 197 parties to the Montreal Protocol to phase-down these potent gases.

 

It is estimated that the global phase-down will reduce emissions by up to 72 billion tonnes by 2050 or roughly 1.3 times global annual emissions, which the United Nations Environment Program says could avoid up to 0.5 degrees of temperature rises by 2100.

 

The government said the law would both achieve these environmental outcomes while significantly cutting red tape, including reducing the number of businesses required to hold a licence by one third, halving the reporting obligations and reducing the number of invoices sent by 94%.

 

The timing could not have been better for Wesfarmers' Murdoch University-based EVOL LNG.

 

The company's business manager, Nick Rea, told Energy News this morning that his company had received some inquiries from the large LNG projects which use HFC refrigerants as a core part of their LNG business.

 

A typical mixed refrigerant will contain nitrogen, methane, ethane, ethylene and propane.

 

"I have seen more activity and interest in propane, which is a natural hydrocarbon refrigerant which [parent company and Wesfarmers subsidiary] Kleenheat produces and is able to supply that market," Rea said.

 

"When I've been monitoring this market, mostly overseas, I'm seeing more interest in propane as a substitute for the HFCs than ethane at this stage.

 

"I've seen a lot of small refrigeration products using refrigerant-grade propane as a substitute which, from what I understand, is more efficient and a better solution.

 

"Propane is one of the substitutes for the HFCs, and is not restricted or regulated by this new legislation, and doesn't have the greenhouse impact that HFCs do."