The Victorian Government is funding electrification to slash fossil fuel use.
Victoria’s largest horticultural nursery has modelled a switch from gas to high-temperature heat pumps, showing how industrial users could cut both costs and emissions under the state’s electrification programs.
Ball Australia’s Skye greenhouse, spanning 42,600 square metres, received a $24,000 grant from the State Government’s Large Energy User Electrification Support Program to investigate alternatives to its gas boiler system. The feasibility study recommended replacing the boiler with an industrial heat pump and 30,000-litre thermal storage buffer tank.
The analysis found the switch could reduce the site’s gas consumption by 96 per cent – equivalent to 36,080 gigajoules annually – delivering energy cost savings of around $748,000 a year.
The study also projected the project could attract up to $706,000 in upfront discounts through the Victorian Energy Upgrades (VEU) program, reducing the payback period to just five years.
“We’re focused on helping Victorian businesses take real steps to cut their energy bills and Ball Australia is a great example of what’s possible,” said Energy and Resources Minister Lily D’Ambrosio.
The trial is one of 36 feasibility projects supported under the $1.6 million program, which offers grants of up to $60,000 for energy-intensive businesses to investigate electrification pathways.
Other assessments have looked at opportunities to replace gas-fired furnaces, dryers, ovens, and HVAC systems with electric alternatives.
Since its launch, the VEU program has supported upgrades in more than 2.4 million households and 180,000 businesses, with options ranging from process heating and steam systems to motors, fans, and on-site solar.
“We’re helping small and family businesses save thousands on their energy bills, through the Victoria Energy Upgrades program,” Small Business Minister Natalie Suleyman said.
The Ball Australia project highlights the technical and financial case for high-temperature industrial heat pumps, a technology increasingly deployed across Europe and Asia but still emerging in Australia’s commercial greenhouse and food-processing sectors.
Industry analysts note that while capital costs remain high, policy support and declining electricity emissions factors are strengthening the business case for electrification.
“These feasibility studies give businesses the confidence to invest in cheaper and energy efficient technologies that will save their businesses money from day one,” said Member for Carrum Sonya Kilkenny.