Enhancing Energy Efficiency in Fish Cold Chain in South Asia: Pakistan & India PAKISTAN Background • Pakistan is producing much lower yields compared to the region • Post-harvest processing is outdated and under-capitalized, leading to low value Global addition • Global estimates of aggregated emissions from • 30-50% of food produced lost to the lack of sustainable cold supply chains refrigerant banks until 2025 are 2.0 Giga tonnes (Gt) of • Cooling and refrigeration needs are expected to increase due to rising CO2 equivalent. temperature • FAO estimates that 35% of fish and seafood is wasted, • Significant strain on power systems due to growing demand for cooling and with 8% of all fish caught being thrown back into the refrigeration needs water2 • Emissions from power systems are a major contributor to global emissions • Small-scale fisheries account for more than half of total • Pakistan NDC intention aim to reduce 2030 projected GHG emissions by up to fish production in the world3 50% • Cold chain development is essential for the small and • National Food Security Policy of Pakistan aims for the establishment of cold chain across supply line for meeting international trade requirements medium scale fishing and seafood industries • Cold storage improves accessibility to fisheries resources, reduces spoilage and expands distribution, INDIA resulting in an increase in incomes and food security • Post-harvest processing (other than for export-oriented shrimp) is outdated, • Fisheries sector presents an opportunity to become a under-capitalized, leading to high fish waste much stronger engine of economic growth and social • 30% of fish lost to the lack of sustainable cold supply chains (especially for development4 domestic market – 90% by volume) • A climate-smart, energy-efficient fish value chain will • Cooling needs are increasing; Required capacity to be built in next 8-10 years will supplement both NDC and Blue Economy Development be 15 times the current capacity (which itself is substantial) dialogue Sources: 1- Papst, Irene – 2018; 2- FAO website; 3- FAO, Post Harvest Fish Loss – 2011; 4- Revitalizing Pakistan’s Fisheries, The World Bank Objectives, Elements & Methodology To analyse and get a better understanding of sustainable cold chain systems/ technologies and Objective practices in fish products cold chain logistics in Pakistan, with the aim of informing activities in the lending operation and Analytical and Advisory support under preparation Fish Product Cold Chain Policy and Institutional Market Analysis Stakeholder Engagement Logistics Profile Analysis Elements & Desk study Market profile ; Cooling solutions Field surveys/Desk study Workshop Business barriers ; Field and desk study Methodology Knowledge Products Recommendations 3 Profile Of The Cold Chain Ice is extensively used in the fish product cold chain. Total annual electricity consumption of the 82 identified processing plants ranges from 64,000 to 147,600 MWH; • Specific electricity consumption: 552 to 667 kWh/ton of fish product processed; • Block ice plants, estimated around 4,000, have a specific electricity consumption of 100 kWh/ton of ice produced; Mechanical refrigeration is used in processing plants, mostly in conjunction with fish product export, and block ice producing plants; Most equipment at block ice plants and fish product processing plants are ammonia based. • Ammonia is a climate-friendly refrigerant with good thermodynamic properties conducive to efficient performance in newly designed equipment or retrofit 60% of the fish product processing plants have old and upgrades through component change. inefficient equipment that is locally manufactured; • 30% have average efficiency equipment that is partially imported, • The balance 10% have imported equipment whose efficiency can still be improved. Enhancing Pakistan Fish Value Chain Efficiency 4 Recommendations for a More Productive and Sustainable Sector Improvement of access to sustainable refrigeration through: • awareness on the benefits of preserving fish products, • encouraging the sector to move to efficient technologies, • assistance in upgrading of processing plants, equipment, and cold stores to climate-friendly technologies through incentives and pilot projects. Improvement of sustainability of the fish value chain through: • Improving hygienic conditions, • improving sustainability of fish capture through the adoption of international codes and guidelines, • improving the sustainability of fish processing through the adoption of energy efficiency measures. Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 5 Energy Efficiency Potential of the Fisheries Cold Chain The market potential for energy efficiency upgrades at 82 fish product processing plants is US$ 12.5 million: • potential for annual energy savings in the range of 33,579 to 77,529 MWh, • translating into saving to owners between US$ 4.5 to 10.1 million per annum in energy bills, • a payback period of 1.2 to 2.8 years, • the specific energy consumption is reduced from a range of 502 - 667 kWh/ton of product to 247 - 316 kWh/ton of fish product. The market potential of implementing energy-efficient refrigeration technologies at 4,000 block ice plants is US$ 243 million: • estimated at US$ 60,674 per plant with • potential energy savings per annum between 158,400 to 475,200 kWh, • translating into savings to the owner between US$ 23,100 to 69,400 per annum • a payback of 1.1 to 2.8 years, • the specific energy consumption is reduced from 100 kWh/ton of ice to 56 kWh/ton of ice. Proposed measures: variable speed compressors, electronic expansion valves, premium efficiency motors for compressors, variable speed motors for fans, cold stores’ wall insulation, and insulation of brine solution tanks and pipelines. Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 6 Climate Impact Of Energy Efficiency Upgrades Based on annual electricity consumption figure of 64,000 to 147,600 MWh by 82 fish product processing plants, annual CO2 emissions of the sector are estimated to be 32,000 to 74,000 tons of CO2 equivalent, Annually, about 17,000 to 39,000 tons of CO2 equivalent emissions can be reduced by implementing energy efficiency measures in fish processing plants. Based on a monthly electricity consumption range of 30,000 to 90,000 kWh by each block ice plant, annual emissions of a plant is 180 to 541 tons of CO2 equivalent, Annually, about 80 to 238 tons of CO2 equivalent of emissions can be reduced by implementing energy efficiency measures by each block ice plant. ➢ The CO2 emission factor for the grid supply is 0.501 kg CO2/kWh (ADB, 2017) ➢ One MWh produces 0.501 ton of CO2 equivalent in emissions. 7 Enhancing Pakistan Fish Value Chain Efficiency - EFO Study Market barriers and investment opportunities Opportunities • Market potential for upgrading 4,000 ice plants is US$ 243 Barriers million. • Dependence on ice • Refrigeration increases capture potential and adds value to the products • Lack of mechanical refrigeration on board fishing vessels • Market potential of upgrading 82 plants is US$ 12.5 million. • Inefficiency at fish product processing plants • Providing incentives for importing refrigerated trucks • Lack of mechanical refrigerated transport • Assisting local refrigeration manufacturers/assemblers to • Inadequate commercial refrigeration make their products more affordable and energy efficient • Lack of institutional support • Assisting local refrigeration manufacturers to upgrade their products • Using renewable sources ae plants Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 8 Guidelines Low Global Warming Potential (GWP) refrigerants used in the cold chain include ammonia, which is almost exclusively used in the fisheries sector in Pakistan, making a transition to other refrigerants unnecessary. For future applications of refrigeration in the fish product cold chain, study includes Guidelines on low-GWP refrigerants for Guidelines on safety and performance Guidelines on component selection each part of the chain standards Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 9 Conclusion Pakistan Fisheries resources (marine, inland, and aquaculture) offer attractive potential for supporting food security and revenue generation, contributing to an increased GDP. At present, low value addition in the fisheries sector is due to outdated and inefficient post-harvest processing practices and technologies, under-capitalization of the sector, and noncompliance to environmental and social legislations and standards. • Fish product cold chain development can be achieved through energy-efficient processing and improvement in the value chain management which will contribute to achieve the SDGs of Pakistan as well as Montreal Protocol and Kigali HFC phase-down plan goals. • The target to achieve US$ 2.0 billion in export of fish products by 2030 requires reforming the policy and legislative framework and the development of logistics and processing to match international best practices in systems and guidelines. Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 10 INDIA Understanding the need (near completion) Energy Efficiency and a) Energy use, high GWP refrigerants and ODS in the sector, along reduction of use and with technologies used emission of HGWPR and b) Lessons, good practices, anecdotes and improved practices ODS in Fisheries Sector c) Brief report on incentives, policies and opportunities for Cold Chains EE/LGWPR in fisheries cold chain Part 1: Walk-through Energy & GHG/GWP Audits completed for 5 (of planned 6) Fisheries Sector Value Chains Understanding the need a) Status paper on the current energy usage and GHG emissions b) Status paper on benchmarking Walk-through Energy & c) Draft energy audit reports GHG/GWP Audits of d) Status paper on the best practices for improving participation of Fishery Sector Value women Chain entities (6 sample value chains) Appraisal of local/ national and international best practices (ongoing) Appraisal of local/ national and • Energy Efficiency international best • Use of refrigerants and ODS practices • Technologies used best practices • Policies, incentives, barriers Part 1: The Walk-Through Audits in All Entities of 5 Value Chains Energy savings and corresponding GHG Emission Reduction: ❑ Opportunities to reduce energy consumption by 5% to 25% across different operations in the value chains ❑ The potential includes fuel switch and renewable energy interventions. Opportunities range: ● Operational improvements, ● Technology interventions some of which are well established, while some are techno-economically viable, but not yet mainstream; ● Technology interventions which are more novel (require further work to assess the economic viability) HGWPR and ODS Elimination: ❑ Most of the Cold Storages, Processing Facilities and Ice Plants use ammonia-based ❑ Of course, there are a few HFC based chillers ❑ HFC based chillers are however the mainstay in refrigerated trucks. Efficiency of Water and Other Resources: ❑ Various specific opportunities to reduce usage of water, promote re-use of water ❑ However, unavailability of benchmarks is an issue (comparison not plausible) ❑ In established aquaculture value chains, the feed to product ratio in is optimal (~well managed corporate businesses) Energy Efficiency and ❑ Smaller (value-chain independent) firms need training and handholding. reduction of use and emission of HGWPR and Fish Wastes: ❑ Wastage levels are high (even if for established value chains wastage is minimized) ODS in Fisheries Sector ❑ Many examples of reuse of wasted fish i.e., offal (fish, kitten, and chicken litter feed) Cold Chains ❑ However, not enough information if these are the best use of fish waste ❑ Yet incomplete - Quantification of actual wastage resulting in solid waste emissions (of GHG) Part 1: Possible Targeting of Policy and Program Interventions market: ❑ States with high contributions in sourcing. Value chains targeting domestic market/consumption (86% Major Findings and of the sourced fish are transported unprocessed for domestic consumption) Recommendations ❑ Main opportunities are in (a) aquaculture farms, (b) fishing boats, (c) logistics – transport and wholesale SO FAR markets, and (d) retail kiosks and shops Stakeholder dialogues and dissemination of (available findings from) Study • Started from June 2022. Will continue through July-August 2022. Participants: • Government Officials (Federal and States) Energy Efficiency and reduction • Cold storage companies (in addition to who had been contacted during Walk-In of use and emission of HGWPR Audits) and ODS in Fisheries Sector • Logistics companies Cold Chains • Startups in the sector • Content of Dialogues: • Presentation of findings from walk-through and detailed energy audits • Draft of best practices available Part 2: • Discussion to elicit more of the good/best practices Stakeholder dialogues and dissemination of Study Design competitions Good Practice Guidance Notes Recommendations for improvement of the value chains. National Design Challenge for (1) Mobile kiosk for Fish vending, and (2) Energy- Efficient & Safe Transport of Live Fish • Objective: To provide a platform to innovators, start-ups, technology providers, students, research institutes/associations to come up with innovative solutions Energy Efficiency and reduction of use and emission of HGWPR • To push awareness re the quality of fish, minimizing wastage, making the fisheries sector transport and retailing systems green and affordable and ODS in Fisheries Sector Cold Chains • The challenge was Launched on 28th March 2022; Competition Entries Received till 12th May 2022. Jury and presentation by shortlisted entries on 19th May 2022. Award announced on 26th May 2022. • Jury included officials from Government Officials (Ministry of Fisheries, Ministry of Part 2: Science & technology), Fisheries Sector Institutions (National Institute of Fisheries Post Harvest Technology and Training, National Fisheries Development Board), Stakeholder dialogues and and experts from Private Sector (Licious Pvt. Ltd., Snowman Logistics India, Fresh dissemination of Study to Home Pvt. Ltd.) Design competitions Good Practice Guidance Notes Recommendations for improvement of the value chains. Winners of the National Design Challenge for (1) Mobile kiosk for Fish vending, and (2) Energy-Efficient & Safe Transport of Live Fish Energy Efficiency and reduction of use and emission of HGWPR and ODS in Fisheries Sector Cold Chains Part 2: Stakeholder dialogues and dissemination of Study Design competitions Good Practice Guidance Notes Recommendations for improvement of the value Discussions underway to facilitate: (i) the Ministry of Fisheries supporting prototype development, chains. and support for incubation, (ii) development of linkages in the “Make in India” program, and (iii) supporting roll-out of the solutions through Government of India Program (PMMSY) ❑ Emphasis on Value Chain Efficiency (for EE and reduction of GHG/GWP) Energy Efficiency and reduction • Efficient cold chain technologies needed for the quality standards to compete with of use and emission of HGWPR international market and ODS in Fisheries Sector • Need to minimize fish losses incurred at each stage Cold Chains • Increased economic use of fisheries byproducts (along entire supply chain ❑ Efficient cold solutions along the entire supply chain, not focusing on cold storages only • Refrigerants in reefer vehicles – main element of reducing ODS • Logistic/distribution businesses must move towards sustainable and green Part 2: transport (say, EV) • Adoption of solar/electric vessels – need for policies/incentives to change the Stakeholder Feedback composition of the motorized vessels (~60% of fishing fleet) SO FAR ❑ For the domestic supply chain, for which the cold chains are yet to be in place: • To be set up only with best technology. Need focused awareness programs • Technology available in the market. Incentives needed to induce adoption • Use IoT to identify and arrest the fugitive emissions (leak of refrigerants) Annex Guidelines on Refrigerant Selection Processing Plants Alternative lower GWP refrigerants (GWP values in parentheses) - HC-290 (5) - HC-1270 (1.8) Small facility - R-744 (1) - HFO blends, e.g., R-454C (146) - Single R-717 (0) with glycol Large facility - Two-stage: R-717 in high temperature and R-744 in low temperature Cold Stores Alternative lower GWP refrigerants (GWP values in parentheses) - HC-290 (5) Small cold stores - HC-1270 (1.8) (< 100 m3) - HFO-1234yf (4) - HFO blends, example: R-454C (146), Large cold stores - Primary R-717 (0) and R-744 (1) (> 100 m3) - Secondary: brine, glycol Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 19 Guidelines on Components Electronic expansion devices (instead of thermostatic expansion valves or capillary tubes etc.) can help lower the condensing temperature and compressor power while also increasing capacity contributing to a higher efficiency; Mechanical or Vapor Injected subcooling decreases the liquid temperature leaving the condenser coil, which increases the capacity of the system and enables the expansion device to operate more efficiently, all serving to decrease power anywhere from 10% to 30% depending on conditions; Suction line heat exchange in which the cool vapor leaving the evaporator is used to sub-cool the liquid entering the expansion device without the aid of an external sub-cooler; Variable capacity compressors allow for better matching of the refrigeration load to the capacity and reduce the number of on-off cycles of the compressor, thus resulting in less thermal and electric cycling losses; Evaporative condensing consists of adding a mist of water to the air that is being drawn over the condensing coils. This type of evaporative condenser has become popular with the growth of trans-critical CO2 technology. Condenser cleaning. Fouling of condensing coils through dust, foreign particles, etc. leads to reduced performance of the condenser but can also result in higher power consumption, longer run-time, loss of temperature and loss of food or products being refrigerated. Heat recovery and system integration: This form of system efficiency improvement has been increasingly used with the growth of R-744 as a refrigerant. Utilisation of heat recovery can contribute to improve the overall efficiency of the entire refrigeration system. Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 20 Guidelines on Standards Standards set the requirements and the limitations of putting new equipment into the market and their conditions of use. Standards need to be adopted into local regulation in order to become enforceable. The relevant standards to the introduction of new technology with low-GWP energy-efficient refrigerants are those on safety and energy efficiency. Safety standards can be adopted into building codes and energy efficiency standards are used for labeling regulation. Safety Standards specify the requirements for the safety of persons and properties: • They provide guidance for the protection of the environment and establishes procedures for the operation, maintenance and repair of refrigerating, air conditioning and heat pump systems, as well as the recovery of refrigerants. • Standards also place refrigerant charge limits based on usage like the minimum occupied volume of the room where the equipment is expected to be used. There are no Minimum Energy Performance Standards related to the fish product cold chain in Pakistan. • Energy efficiency for fish processing is measured in kWh/ton of product. • Efficiency of cold stores can be measured in kWh/m3 of storage. Enhancing Pakistan Fish Value Chain Efficiency - EFO Study 21