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Electrolube's Eco-Friendly Products Exempt from Carbon Tax

Posted on 08 August 2012 by Electrolube

Following the Australian governments announcement to introduce a new Carbon Tax in 2012, the international chemicals manufacturer, Electrolube, examined the impact this would have on specialty aerosol and refrigerant products complying with new legislative amendments coming into force from the 1st July.

As part of the country's Clean Energy Future Plan, Australian importers and manufacturers will be required to pay a levy incorporating a carbon charge based on the equivalent carbon price, which will apply to standard air dusters and refrigerant sprays, where synthetic greenhouse gases or in this case equipment containing these gases, including HFCs and SF6, will be subject to the new carbon tax. The tax is being introduced as a means of meeting Australia's target of cutting emissions five per cent by 2020 and Prime Minister Julia Gillard said CO2 emissions would be initially taxed at A$23 ($25; £15) per tonne from 2012. As a consequence, the value of synthetic greenhouse gases will also increase based on the carbon charge and businesses will need to consider how these gases are used, stored, supplied, serviced, disposed of and managed.

With environmental responsibility at the core of its ethos, Electrolube manufactures chemicals and materials for use in the global electronics and industrial manufacturing industries. Following Electrolube's Carbon Tax enquiries, the multi-national manufacturer has confirmed that products such as the FREH Freezer refrigerant and EADH Air Duster will not incur any carbon levy. The innovative 'green' products benefit from Solstice Propellant, an ultra low Global Warming Potential (GWP) blowing agent and aerosol propellant. EADH and FREH will be exempt from the Carbon Tax due to their ability to reduce equivalent CO2 emissions by more than 99.5% over preceding technology, benefiting the electronics industry with low environmental impact combined with high performance.

FREH Freezer is a non-flammable, non-corrosive refrigerant used as a safe and quick way of cooling small electronic and electrical components, lowering temperatures to at least -50C in just seconds. The product has also been developed to detect faulty soldered joints and overheating parts, and with the added extension tube it aids easy access to difficult to reach areas. FREH also helps to eliminate the time consuming method of 'dry joint location', which involves measuring electrical resistance at each joint in a faulty circuit. Electrolube's non-flammable EADH Air Duster, helps to remove all dust and airborne contamination from fragile or inaccessible areas on electrical and electronic equipment to maintain parts efficiently and quickly.

Standard air dusters and refrigerant sprays contain gases with high global warming potentials, from 140 to 23,900 times that of carbon dioxide. The Solstice propellant is a Halo-Olefin (HFO) with astonishing low-carbon benefits. Carbon dioxide molecules live in the atmosphere for years, which is why they are capable of absorbing so much heat, whereas HFOs disappear in days. Once released into the atmosphere, Solstice 1234ze has a measured atmospheric lifetime of two weeks compared to fourteen years for HFC134a. As well as a significant reduction in CO2 emissions, customers also get the benefit of 20% more blasts per can. Replacing one 200ml standard can of duster containing HFC134a with the equivalent containing Solstice 1234ze results in a remarkable reduction of CO2 emissions of 347.5Kg, the equivalent of flying 1632 air miles (3021 Km).

Chris Hall, Regional Manager for Electrolube Australia said, "We are always looking to expand our green credentials as a responsible manufacturer and pass on the benefits of efficient, high performance 'green' materials to our customers. We are extremely pleased our air dusters and freezer sprays will not incur any additional expense through the new carbon tax legislation for our customers and are delighted the products contribute so positively towards a greener environment."

To give an example of the impact of the carbon levy on a company importing one tonne of HFC134a into Australia from July 2012 onwards, the equivalent carbon price payable would be $29,000. This is calculated by multiplying the quantity (1 tonne) by the GWP of HFC134a (1300) by the applicable carbon price ($23). The prescribed cost recovery levy payable would be $165, which is then added to the equivalent carbon price, to give a grand total of $30,065.

Ron Jakeman, Managing Director of HK Wentworth Group, comments, "We are delighted our products are in line with Australias commitment to reducing emissions and will not be subjected to the carbon tax. It's great news for customers. The propellants we use offer very low GWP, zero Ozone Depletion and non-flammable qualities, which underlines our commitment to protecting the environment, a very important part of the whole business ethos within the Group."

For further information about Electrolube, please visit www.electrolube.com. To find out more about Clean Energy Future, please visit www.cleanenergyfuture.gov.au