Chilepioneers demand for sustainable cooling and heating solutions

Chilean industry and retail sectors are vigorously phasing out the use of climate-damaging F-gases in the coming years. This requires massive investments in sustainable cooling and heating solutions which, in turn, provide Danish exporters with a tremendous opportunity to establish themselves on the Latin American market.

Chile is a frontrunner in the region in terms of transitioning from climate-damaging F-gases to more sustainable cooling methods. So far it has fulfilled all its international obligations for phasing out F-gases, and is currently faced with even more several deadlines in the next few years. It will require massive investment in more sustainable cooling and heating technologies - a task that local manufacturers will be unable to fulfil. However, this provides favourable conditions for Danish cooling and heating companies.

F-gases in Chile

The construction of HCFC plants was banned in 2013, and the import of HCFC will ultimately be banned in 2030. As of now industrial refrigeration systems often continue to use HCFC. Especially within the country's fishing and pork industry – sectors in which TC Santiago already has strategic partnerships -  this transition is lagging behind.

The phasing out of HFCs will begin no later than 1/1 2024, which targets 10% reduction by 2029 and 80% reduction in 2045. Efforts are being made to implement shorter deadlines for phasing out of HFCs, as the government is legally bound to work towards climate neutrality by 2050. However today the use of HFCs is increasing. The most common types of HFC gases are R-134a, R-404A and R-507A.

The import of CFCs has been banned since 2010, but the CFC equipment continue to exist on a smaller scale.

The Chilean government actively supports initiatives to service more sustainable technologies. Refrigeration technicians are being trained today to service, among other things, CO2-based equipment. The Chilean Ministry of the Environment has a unit dedicated to cooling and heating technology, as well as the protection of the ozone layer.

Cooling- and heating sectors are anticipating a green transition

Several key companies in Chile have already started looking for suppliers to start the conversion of cooling and heating systems. According to a survey conducted by TC Santiago, three of the four largest supermarket chains in Chile have begun the conversion to CO2 refrigeration systems.
Chile's fishing industry is growing rapidly and therefore requires progressively newer cooling systems. Various stakeholders within the fishing industry continue to look for ways to make the sector more sustainable, which reveals a clear opportunity for sustainable cooling technology to take shape.
Several agents cite a lack of players on the market as the main reason why they have not yet been able to convert their facilities. The demand is there, but suppliers are lacking.

Chile: a base for Latin American export adventure

Chile is placed as first in Latin America on the "Ease of Doing Business index" and the "Economic Freedom index". In addition to this, Chile has the 2nd highest GDP per capita and the 2nd lowest level of corruption in Latin America respectively. Economic development in the country has been steadily positive for the past 30 years, and Chile has a wide range of free trade agreements with the EU and Mercosur. All this makes Chile an obvious country to start an export adventure in Latin America.

Contact TC Santiago

The Trade Council can offer 25 hours of free subsidized consultancy services for small and medium-sized companies through our program ‘Scope Your Business Model’. Through the program we can explore your company's potential and adapt your business model to the local market. We also offer up to 3 hours of free of charge consultancy services to any Danish company.

TC Santiago has extensive experience in partner search, contacting authorities, and investigation. Moreover, we also have a wealth of experience with turnkey participation in fairs, in relation to which the 2024 fairs Expo Frío Calor and Aguasur are especially relevant for showcasing the potential of Danish cooling technology.