The Allan Labor Government is helping to boost local manufacturing by cutting operating costs and slashing money off their energy bills.
Minister for Energy and Resources Lily D’Ambrosio today visited Fuchs Lubricants – a lubricant manufacturing business – who received $49,000 through the Victorian Energy Upgrades (VEU) program to explore the installation of a heat pump for their pre-heating oil operations.
“We’re helping businesses unlock thousands of dollars of energy savings by upgrading their equipment and appliances to more energy efficient models,” Minister for Energy and Resources Lily D’Ambrosio said.
Fuchs is one of 36 facilities that took part in the $1.6 million Large Energy User Electrification Support program that funds feasibility assessments for businesses that use large amount of energy.
These feasibility assessments provide business cases for energy efficiency upgrades through the VEU such as upgrading hot water boilers, furnaces, ovens and dryers that help them cut down their energy costs and save money.
If implemented, the heat pump could cut the site’s gas usage by 25 per cent, saving 2.4 Terajoules of gas each year and around $125,000 each year. Fuchs will be able to payback their investment in the heat pump in less than two years.
The business case also identified ways to improve energy efficiency through waste heat recovery, optimising excess heat from boilers, and reducing temperatures required for their blending processes, reducing gas usage.
Fuchs would also be able to receive a discount of up to $45,000 through the VEU program for the installation of the heat pump upgrade.
Since 2009, the VEU program has helped more than 170,000 businesses and 2.4 million households upgrade their appliances and equipment and slashing more than $440 million dollars off energy bills.
The VEU program is the largest energy efficiency upgrade program in Australia and through a $5.9 million investment the Victorian Budget 2024/25 the program will be reviewed and modernised so it can continue to help Victorians slash their energy bills.
