The BlueGen unit is a mini generator that converts natural gas into electricity and heat. The electricity supplies power to the house and generates heat to create hot water, removing the need for a separate household hot water unit.

Victoria’s Housing Minister Richard Wynne said “We are working in partnership with CFCL to reduce carbon emissions as well as energy costs for vulnerable Victorians.”

The State Government is investing $1.35 million in the units, which will be installed in homes around regional Victoria and metropolitan Melbourne and their effectiveness and energy efficiency will be evaluated after two years.