The annual carnival season as well as the famous ‘Montubio Rodeo’ attracts huge crowds to Quevedo, a riverside city in the Los Rios province in Ecuador. Weekends bring in new visitors and families who want to enjoy a snack and a drink, especially during the warm months. Among the numerous kiosks and shops dotting the riverside selling snacks and drinks is the one belonging to Juan Jiménez.  

As a small business owner, Juan suffered from high electric bills and operating costs for his refrigeration equipment, often compromising the viability of his operations. It was then he decided to buy the latest equipment from a well-known Ecuadorian appliances brand, Indurama.  

Soon, Juan witnessed a significant drop in his energy bills and operating costs. “For small businesses like mine, the equipment is a perfect partner—reliable, efficient and quiet,” he says. Little did he know that the energy-efficient equipment is also using a climate-friendly refrigerant, thanks to the Montreal Protocol project by United Nations Industrial Development Organization (UNIDO) in Ecuador. 

Impactful foundation in household refrigeration

“Our collaboration with Indurama started a decade ago. With the support of the Government of Ecuador, UNIDO and the Multilateral Fund for the Implementation of the Montreal Protocol (MLF), Indurama—the only active manufacturer of domestic and commercial refrigerators in the country—transformed its thermal insulation production line, replacing an ozone-depleting chemical with a climate-friendly alternative,” said Rodrigo Serpa, UNIDO’s Project Manager. In line with the above and in agreement with UNIDO, Indurama started producing household refrigerators using Isobutane (R600a) as a refrigerant, a climate-friendly option replacing Hydrofluorocarbon (HFC-134a), known for its high Global Warming Potential (GWP).  

Commercial Refrigeration goes green  

The latest conversion project of commercial refrigeration appliances production line, completed in September 2024, introduced the use of natural refrigerants—Propane (R-290), replacing HFC-134a. HFCs do not damage the ozone layer but cause global warming. They need to be gradually phased down as per the requirements of the Kigali Amendment to the Montreal Protocol.  

“At Indurama, we have incorporated new machinery into our refrigerator production line with the support of UNIDO. This allowed us to automate processes, boost productivity and accelerate product innovation to meet the expectations of modern consumers,” according to Giorgy Toledo, Head of Research & Development at Indurama. UNIDO also advised Indurama on best practices to ensure that energy efficiency is maintained by its customers.

“With this transformation, approximately 10.4 metric tons of HFC were eliminated, equivalent to the reduction of 14,872 tons of CO2 equivalent, an environmental impact comparable to taking more than 3,000 cars off the road for a year,” says Alan Bastida, UNIDO’s Montreal Protocol expert involved in the project. 

Spreading climate friendly technologies across Latin America  

A brainchild of a group of entrepreneurs based in Cuenca, Indurama started a refrigerator assembly unit back in 1972. By the mid-1980s, it began expanding its kitchen appliance business in other Latin American countries. Today, with a refrigerator production capacity of 1,000 units a day—both for commercial and household users, Indurama is active in over twenty countries across Latin America and the Caribbean region.

Rómulo Armas, Ecuador’s National Ozone Officer, said “The Ecuadorian industry has demonstrated its capacity for innovation and commitment to sustainable development. With the support of the Montreal Protocol, Ecuador has fully phased out the Fluorinated gases (F-gases—potent greenhouse gases with high global warming potential) in the manufacturing of refrigeration components. This project is an example of how the productive sector can evolve towards cleaner and more efficient technologies, allowing Ecuador to export high-quality products that meet the highest environmental standards.” 

Many small businesses like Juan’s, large commercial enterprises, industries as well as households could benefit from the adoption of energy-efficient and climate-friendly technologies due to the converted production lines. The impact of this project can be felt in multiple countries across the Latin America region.

“This is one of the first investment projects completed under the Kigali Amendment in the world. Through this project, we are not only transforming the refrigeration industry in the country but enabling the industry to fight against climate change and reduce greenhouse gas emissions,” said Alois Mhlanga, Chief of UNIDO’s Climate Innovation and Montreal Protocol division. This conversion to ultra-low GWP refrigerants reaffirms the leadership of UNIDO and Ecuador and the Latin America region in adopting innovative and sustainable technologies. “With our interventions, we are empowering local manufacturers to succeed in a highly competitive and consolidated market with many international players.” he added.

For further details: 

Alois Mhlanga 

Chief 

Climate Innovation and Montreal Protocol division  

Email

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