Energy and Environment

India: Conversion to CFC-free technology for SMEs in the foam sector
Brazil: Conversion to CFC-free technology in the manufacture of rigid spray foam
Argentina: Terminal phase-out of CFC-11 use in foam manufacturing

India: Umbrella project for conversion to CFC-free technology for SMEs in the foam sector

In 1997, UNDP and the Ministry of Environment & Forests of India developed a group project covering 80 SMEs in the foam sector (which employed a total of 2,000 persons), to eliminate the use of 290 metric tonnes of CFC-11 in the manufacture of rigid polyurethane foam insulation products. Typical uses of such products are for thermal insulation in buildings and insulated household appliances (or thermoware) such as jugs, flasks, hot/cool cases, etc., used for keeping food and beverages appropriately warm or cold.

The SMEs earlier produced rigid foam using CFC blowing agents. Very low levels of investments in plant and machinery and resulting labor-intensive operation typically characterized the SMEs. Although general awareness about quality assurance, training, environment and safety-related issues existed, it was not emphasized in practice to keep costs down, due to limited operating capital, small scale of operation and pressure on profitability exerted by the very competitive domestic market as well as cheap imports. In general, the knowledge of the latest chemicals and technologies was quite limited in these enterprises. Moreover, these SMEs lacked the technical and managerial capacity for undertaking sound procurement.

In collaboration with suppliers, customized low-cost low-output foaming equipment was developed. In partnership with an indigenous chemical supplier, specific CFC-free chemical formulations were composed to allow these SMEs to use the new environment-friendly technology cost-effectively. The equipment was designed for easy, economic and efficient operation and maintenance, to ensure long-term sustainability. Further economies in project costs were achieved through standardization, bulk procurement and indigenization. Extensive technical assistance and training inputs were provided to enhance the capacity of SMEs to address technical and environmental issues.

The project was successfully completed in 2000. Replicating its success, three similar projects were developed and implemented in the foam sector during 1999-2003, covering an additional 70 Indian SMEs that employed about 1,500 people.

The key determinant of the success of such projects is ensuring economic availability and sustainability of the appropriate environment-friendly technology, including raw materials. In turn this ensures commitment on part of the SMEs to incorporate environmental objectives in their investment and operational decisions.

Innovative approaches in project execution, such as bulk procurement for achieving economies of scale and provision of extensive technical assistance and training to enhance local capacity and indigenization, allow the introduction in SMEs of cost-effective and sustainable environmental-friendly technologies and help to enhance their long term viability.

Source: UNDP and Ministry of Environment & Forests, India: Elimination of CFCs in the manufacture of Rigid Polyurethane Foam at 80 SMEs.

Brazil: Conversion to CFC-free Technology in the Manufacture of Rigid Polyurethane Spray Foam

During an Ozone Awareness building workshop held in Brazil in June 1994, UNDP was approached by Poly-Urethane Industria E Comercio Ltda about a plan to introduce a castor oil-based polyurethane CFC-free system to the Brazilian sprayfoam market. At the time, virtually all polyurethane foam manufactures in Brazil used CFC-11 as a blowing agent, and Poly-Urethana Ltda, a chemical and equipment supplier, supplied such companies with standard petroleum based polyurethane chemicals that were blended to customers’ specifications.

Poly-Urethane’s idea to produce polyurethane chemicals from castor oil derived from locally grown mamona seeds (“Mamoma” is the Brazilian word for the castor oil plant) was an excellent idea from an environmental standpoint; however the idea in itself was not eligible for funding from the Multilateral Fund.

The system in use at that time had been designed by Poly-Urethane for CFC-11 and also worked excellent with HCFC-141b and water. However, because of viscosity and different, rather unique, component ratios of the castor-oil based polyurethane chemicals and water, the existing dispensing equipment needed to be replaced. Poly-Urethane offered to design and manufacture new, fitting equipment and train its sprayfoam customers in the use of the new system. A project was born and approved in August 1994 with many firsts that included:

• The first ODS phaseout project in Brazil
• The fist MLF group project targeting three enterprises: Thermjet, Zenimont and Lavale
• The first project based on local technical support and coordination, and
• A project based on renewable feedstock and with a negative Global Warming Potential

Equipment prototyping was finished and successful trials conducted by August 1996. Production of additional equipment, trials and training for the three enterprises followed and in July 1997 the project was certified to be technically completed.

By establishing local, ongoing demand for Mamona, Poly-Urethane provided the impetus for the reestablishment of Mamona farming in the northern part of Minas Gerais state. With Mamona production scaled up to industrial levels, approximately 4,500 farming families were kept steadily employed, while Mamona was being considered as a possible base for the manufacturing of additional products.

An additional advantage of the Mamona project was the absorption of carbon dioxide by the plants, thus reducing greenhouse gas accumulations in the atmosphere. The estimated carbon dioxide absorption level of Mamona plants is about 34.6 tonnes per hectare, with two growing cycles per year. Each hectare of castor oil plants produces 350-650 kg (660-1430 lb.) of oil, which in turn produces 400-800 kg (880-1760 lb.) of the chemical used for polyurethane production. With enterprises consuming many tonnes per year for polyurethane foam production, the contribution of the Mamona plants was quite significant.

Total Cost: MLF budget of US$ 370,000 + US$ 100,000 covered by Poly-Urethane Ltda to cover additional layouts.

Impact: The impact of this project exceeds by far the mere phaseout of 72 t CFC-11 (the baseline CFC-consumption of the three Brazilian enterprises):

• Being a first—and resounding successful—project in the country, it kick-started an impressive ODS phaseout program in the Brazilian foam industry that is about to be completed
• The project was a first in building considerable local capacity and showed the willingness and capabilities of the Brazilian industry
• The project combined—without receiving funding from the MLF—ODS phase-out with GWP reduction
• The project revolutionized the spray equipment market in South America

What has happened since 1997? The production of polyols based on castor oil—while only a small market segment—has continued in the South-American market and has been experiencing a revival in other, industrialized countries. The initial equipment has evolved into newer models but the original design is still sold in the market. While this all proves sustainability of the project, water-based systems have not yet achieved full acceptance in the market. Future replacement of HCFCs may change that and prove even this part of the project a success.

The project met many challenges that, while all ultimately resolved, caused many headaches. This picture shows Marcilio Diaz, the designer of the chemical system and the equipment, when it finally worked!

Argentina: Umbrella project for the terminal phase-out of the use of CFC-11 in the manufacture of foams

This terminal phase-out project was a very thoroughly implemented umbrella project that focused not only on terminal phase-out of CFC at eligible enterprises but also on identification of all remaining ODS users in the foam industry.

With the completion of this project, Argentina accomplished phaseout of the use of CFCs in the foam industry. While initially 89 eligible enterprises were identified using 213 t CFCs, the final inventory counted 78 eligible enterprises using 195 t CFCs and 85 non-eligible enterprises using 58 t CFCs. The latter group included companies that were recently established, not interested in assistance, using new equipment or too small to qualify for investment assistance. Having an inventory of all existing former CFC users allowed the Government to monitor compliance using a very complete database.

The project went through an exhaustive procurement exercise that included validation of suppliers that had not been used before and adjustment of specifications to the—generally tiny—size of the operations. This worked very well and cut costs per machine to an unprecedented low level.

The completion of the project coincided with a country-wide HCFC consumption survey which also allowed for a verification of companies using CFC/HCFC blends. Through this survey an additional usage of 20 t CFCs were identified that otherwise would have gone unnoticed.

In general, the verification of eligibility CFC use was difficult in Argentina. The usual procedure—relying on supplier data—did not work in this very large but sparsely populated country which is why one of the project's objectives was to identify all remaining ODS users in the foam industry.

With an MLF budget of US$ 1,324,843 not all costs could be covered. However, the relatively large group of non-eligible companies, innovative procurement, low trial costs and restriction of the payment of operating costs allowed to provide all eligible companies with suitable equipment.

The project resulted in the total phase out of 253 t CFCs (direct phase-out accounted for 195 t CFCs and in-direct phase-out for 58 t CFCs) against an expected 213 t at the start of the project. During the project's implementation 219 CFC using companies were identified. Of these 163 still used ODS, 78 received technical/financial assistance while 85 phased out ODS without assistance.

Recently, the price of CFCs has increased and is now more than twice the price of replacement chemicals. Therefore no fall back to CFCs is expected, although the Government is monitoring compliance very closely.

The recipients of project assistance were extremely satisfied with the support provided. During project implementation several companies that initially declined to participate changed their mind and joined.