RAC equipment use up/refrigerant leaks down

New industry report released on the state of the refrigeration and air conditioning (RAC) industry in Australia.

The report provides an economic and technological assessment of the RAC industry in Australia in 2016. It includes an analysis of the size and economic value of the industry, the equipment and refrigerant gas bank (all refrigerant in Australia), trends in gas imports and equipment, and direct and indirect emissions in this sector. It expands on, and where possible makes comparisons with, two previous studies – Cold Hard Facts 1 published in 2007, and Cold Hard Facts 2 published in 2013.

The report is the most extensive of its type in the world, and makes clear the size and importance of the RAC industry in Australia.

How big is the industry?

Over 20,000 businesses operate in the RAC industry, employing around 298,400 people. It is estimated that $38 billion was spent on purchasing, installing, maintaining and operating RAC equipment and services in 2016, with new equipment purchases accounting for $8.1 billion. This total expenditure on RAC was equivalent to 2.3 per cent of national gross domestic product (GDP) in 2016.

Is the industry growing?

Yes. The previous report noted growth in RAC equipment numbers exceeding growth in population and GDP. This trend continues for 2016, with 54 million pieces of RAC equipment in Australia, up from 45 million in 2012. The bank of refrigerant is projected to grow by 35 per cent for the period 2017-2030.

Growth in the sector could be even higher as new technologies and uses emerge, such as heat pump clothes dryers and large scale-controlled climate structures used for farming. Increases in indoor food production (such as hydroponics), chilled food transport to consumers and food exports are also likely to drive the growth.

Refrigerant leak rates are reducing

The amount of refrigerant imported into Australia to service equipment remains stable at an average of 3,700 tonnes a year. This is despite the amount of equipment and the refrigerant it contains increasing by 17 per cent since 2012. This translates to significant improvements in leak prevention.

Equipment is becoming more energy efficient

The total amount of electricity used for RAC equipment in Australia has remained almost the same (59,100 gigawatt hours in 2012 and 61,000 gigawatt hours in 2016), despite a 20 per cent increase in the stock of equipment. This reflects a significant improvement in the efficiency of equipment.

Emissions will reduce

The refrigerant bank’s carbon dioxide equivalent value of 99 million tonnes is projected to peak at more than 102.6 million tonnes in 2019, before steadily reducing to 81 million tonnes in 2030. This equates to an 18 per cent reduction for the period 2017-2030.

This reduction reflects the transition to lower global warming potential (GWP) HFCs, and increasing use of low GWP, non-HFC refrigerants. For example, it is estimated that 95 per cent of domestic refrigeration has already transitioned to hydrocarbon refrigerants, and domestic split system air conditioners are experiencing rapid growth in the use of lower GWP HFCs.

Visit the Department of the Environment and Energy’s website to view the full report

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