Environmental regulations limiting high global warming potential (GWP) refrigerants have increased the demand for energy-efficient and environmentally sustainable refrigeration systems. Steady-state experiments are conducted by varying nanolubricant type composed of aluminum oxide (Al2O3) and multi-walled carbon nanotubes (MWCNT) and their hybrid composition dispersed in mineral oil (MO) at concentration 0.05–0.2 wt.%. The aim is to examine the impact of single and hybrid nanolubricant on key performance parameters, including coefficient of performance (COP), compressor work, exergy efficiency (EE), and total equivalent warming impact (TEWI). Experimental results revealed that the COP and EE improved by approximately 33.81 and 24.65% respectively. In parallel, reductions are observed in compressor work (15.37%), and TEWI (3.90%), reflecting both thermodynamic and environmental benefits. The optimal performance is achieved at a nanolubricant concentration of 0.15 wt.%, where the system demonstrated the most favourable balance between energy efficiency and environmental impact. These findings suggest that using Al2O3-MWCNT hybrid nanolubricant can significantly improve energy and exergy performance of ice plant while contributing to environmental sustainability.