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Aware that used lubricants are waste considered dangerous at a global level and that their disposal generates negative impacts on the environment, the companies of the Ecuadorian Association of Lubricants -APEL launched in April 2021 a program for the collection and comprehensive management of this waste. APEL turned to SUSCRIBO and the use of smart digital contracts to quickly formalize its commitments with suppliers and customers and automate tasks.

The program, called RECOIL (, which also includes the collection of containers, meets the “Instructions for the Comprehensive Management of Used Lubricating Oils and Containers” issued by the Ministry of the Environment and with the Ecuadorian Environmental Code.

RECOIL supposes the financing of environmental actions by incorporating an economic value called ECOVALOR, in the invoices for each gallon of lubricant sold by the participants in the Program. Each month, on the basis of official information that the companies in the sector report to the National Hydrocarbons Authority, RECOIL will settle, invoice and charge each participant the total ECOVALOR that corresponds to pay, which will finance the collection and management of the waste in question throughout the Ecuadorian territory.

To achieve the launch of its Program, APEL resorted to SUBSCRIBO and the use of smart digital contracts to quickly formalize its commitments with suppliers and customers and automate tasks.

Between March 03 and 12, APEL signed adhesion contracts with all the companies that participate in the RECOIL program, that is, 18 digital contracts in 9 days, something unthinkable in the use of traditional paper contracts.

Likewise, it signed a cooperation agreement with the main used lubricant management company in the country, BIOFACTOR, so that it can carry out the management of collection-land transport, temporary storage and treatment of waste. In addition, APEL hired SAMBITO, a leading company in environmental services consulting and technology for the development of SAAS that allows RECOIL to integrate the entire chain of management of used oils and packaging, in accordance with the traceability requirements contained in the applicable regulations.

With MONAX ( technology, marketed by SUSCRIBO (, APEL – RECOIL perfected the contracts in which it launches its circular economy model in the lubricants sector in 2021. The contracts signed with BIOFACTOR, SAMBITO and all the companies in the sector, like the other contracts to be signed, are therefore using a unique combination of blockchain technology and process modeling, to give security, transparency, analytics and above all life to the contracts integrating with other business processes. Initially, this consists of the automatic calculation of the ECOVALOR to be settled by each company, based on the volume of its commercialization reported to the authority, as well as the automatic production of invoices and their subsequent collection. In addition to this, each contract includes notices, milestones for the fulfillment of obligations and notifications.

For the first time in the history of the region, as perhaps the world, a circular economy model on hazardous waste is formalized so quickly and is managed through smart contracts, allowing cutting of costs, time and physical contact in contractual processes and of business.

This work is derived from SUSCRIBO-Contratos Digitales and ZirconTech strategic alliance to work on developing smart contract solutions in Latin America (

About APEL:

The Ecuadorian Association of Lubricants -APEL- is a non-profit corporation that represents importing, producing and exporting lubricant companies domiciled in Ecuador. Among the brands represented in APEL are world leaders such as Castrol, Valvoline, Havoline, Texaco, Terpel, General Motors, Golden Bear, Kendall, PDV (Citgo in USA), Total, Caterpillar. In addition to supplying more than 90% of the Ecuadorian market, APEL companies export to the region, so their corporate leadership has international projection.

On the smart digital contracting functionalities capitalized by APEL:

Both the participants of the RECOIL program as well as BIOFACTOR and SAMBITO will have at their disposal 24 hours a day the attached documents and signed contracts, safely archived in the blockchain, they will obtain key analytics on compliance with contractual obligations, they will receive notices and notifications about key dates such as billing, payments, renewal, termination and even the schedule of activities, to ensure compliance and avoid delays in managing paper contracts. In other words, each time a clause programmed in the contract must be complied with, the parties will receive an email as a reminder for its effective implementation. In a second phase, automation will be gradually added to the digital contracts already signed until the ECOVALOR report and monthly settlement trigger billing and collections without human intervention. This second phase should be completed by December 2021.


Ecuador promotes a circular economy model for its used lubricating oils – RECOIL


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SUSCRIBO-Contratos Digitales and ZirconTech announce a strategic alliance to work on developing smart contract solutions in Latin America.

About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

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Andres Zunino

Chief of Operations at ZirconTech - Blockchain Enthusiast