Use of phase change materials in the informal fishery retail sector PRACTICE PAPER 5 SUBMITTED BY: Development Environergy Services Limited AUGUST 2022 © 2022 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. ABSTRACT To facilitate the adoption of best practices in terms of energy efficiency technologies, refrigerants with low global warming potential (GWP), and promoting cold chains based on low ozone depleting substances (ODS) this practice paper explores the technologies and practices to reduce the use of ice in retail for the storage of small quantities of fish to reduce the GHG emissions and water consumption in the informal fishery sector. CONTENTS ABBREVIATIONS .................................................................................................................................... 4 1. INTRODUCTION ............................................................................................................................. 5 2. MODES OF FISH STORAGE IN RETAIL ....................................................................................... 6 3. ANALYSIS OF PCM TECHNOLOGY FOR REPLACING ICE ........................................................ 7 Freezers ...............................................................................................................................................7 Eutectic Phase change material (PCM) lined boxes ...........................................................................8 Summary ..............................................................................................................................................9 4. CURRENT POLICY ....................................................................................................................... 10 5. ROLE OF WOMEN AROUND THE TECHNOLOGIES ................................................................. 11 6. CONCLUSION ............................................................................................................................... 12 TABLES Table 1: Distinction between formal and informal fish retail sector .........................................................5 Table 2: Summary of various assessment for the base case (insulated boxes with crushed ice) .........6 Table 3: Summary of various assessments for the alternative options ...................................................9 Table 4: Summary of various assessments for the proposed fuel switch options ................................12 FIGURES Figure 1: Schematic diagram of the fishery and aquaculture products movement .................................5 Figure 2: Thermocol and polyethylene material for storage ....................................................................6 Figure 3: Freezer used by formal fish retailers (image courtesy - IndiaMart)..........................................8 CASE STUDIES Case study 1: PCM boxes in retail ...........................................................................................................8 ABBREVIATIONS ACRONYM FULL FORM CAAS Cooling as a service model CFC Chlorofluorocarbon DESL Development Environergy Services Limited DoF Department of Fisheries GHG Greenhouse Gases GRP Glass-reinforced plastic GWP Global warming potential HDPE High density polyethylene IMC Indian major carp INR Indian National Rupee ODS Ozone depleting substances PCM Phase change material PMMSY Pradhan Mantri Matsya Sampada Yojana USD US Dollar 1. INTRODUCTION The fishery and aquaculture produce goes through various stages before it reaches the end consumer as shown in the figure below: Wholesale Retail End market market Consumer Figure 1: Schematic diagram of the fishery and aquaculture products movement The produce needs to be kept fresh and hygienic across these stages to maximize sales of the fish products by the retailers. During these stages, these climate sensitive products need to be maintained at specified low temperatures using thermal and refrigerated packaging methods. The typical holding time for the transaction between the wholesale market and the retailers is a maximum of 4 hours everyday1. However, the holding time for the retailers depends on the infrastructure they must enable the sale of their stock to the end consumers. The desired low temperatures are maintained using ice and storage of the material with ice or using freezers. The retail market for fishery constitutes the formal and the informal sub-sectors. While the formal retail shops are those which operate from closed enclosures (shops), the informal retail sellers are mostly roadside sellers. The formal and informal sectors are distinguished based on their scale of operation, infrastructure, and material losses. The following table captures the distinction between them: Table 1: Distinction between formal and informal fish retail sector Factors Formal sector Informal sector They operate on a larger scale They operate on a smaller scale (generally (generally handling 80-120 kg per handling 10-40 kg per retailer every day) in terms retailer every day) in comparison to of total fish stock individually. However, the Scale the informal retailers. Typically, the informal sector deals with a larger number of sale price of fish is higher in these retailers in comparison to the formal sector. This shops on account of the overheads is primarily due to their lower market price of fish and the better hygienic conditions They do not have a permanent establishment and operate from roadside locations. Their location is The retail shops are generally based on demand and changes frequently. They Infrastructure equipped with deep freezers and generally do not have grid electricity supply. They have electricity supply from the grid use ice in plastic/thermocol containers for holding their stock The share of sale of fish from the informal retailers is an estimated 60% or more in the South Asian countries. Ice is the major means of maintaining the desired cooling during transit and storage at the retail part of the fishery sector. However, the use of ice 2 is responsible for all the emissions in the informal retail. In this practice paper, technologies, and practices to reduce the use of ice in retail for 1 Stakeholder consultation in Howrah, West Bengal 2Embedded GHG emission of ice is 88 kgCO2/t of ice the storage of small quantities of fish have been explored thereby reducing the GHG emissions as well as reduced water consumption in the informal fishery sector. 2. MODES OF FISH STORAGE IN RETAIL It is important to maintain the appropriate temperature of the fishery and the aquaculture products during storage and transport to avoid discoloration, foul smell, and microbial spoilage. 3 Insulated boxes with ice is the prevailing mode of storage of fish in the informal sector. The boxes/crates are made of either polyethylene material or polystyrene (thermocol). The product is kept inside the crate which is then filled with ice. The crates are available in various shapes and sizes in the market according to the specific needs of the retailer. Generally, thermocol is used due to its low thermal conductivity, its ability to retain cold temperature for a long duration of time and providing a high resistance to water absorption. In the context of South Asian countries, the use of insulated boxes is common as it is an economical option. Figure 2: Thermocol and polyethylene material for storage The financial, economic, and environmental assessment of the prevailing mode of fish storage in the retail market has been summarized in the table below: Table 2: Summary of various assessment for the base case (insulated boxes with crushed ice) Assessment Parameter Unit Insulated boxes with crushed ice Specific capital expenditure ¢4/kg of fish 0.015 Specific operational ¢/kg of fish 3.5 expenditure Financial Loss of material % 10% Space utilization % 71% Usage of ice for cooling fish in ratio Stress on water system - of 0.7 kg ice per kg of fish Economical The present employment associated Employment - with production and supply of ice to the retailers 3 https://www.fao.org/3/v3630e/v3630e03.html 4 1 USD = 100 ¢ 5 Box life considered 2 years Assessment Parameter Unit Insulated boxes with crushed ice Improper distribution of crushed ice in the crate may lead to higher risk Hygiene - of spoilage, a probable health hazard for consumers 6 kgCO2/kg of Specific GHG (ice) emission 0.062 Environment fish al Specific GHG (Refrigerant) kgCO2/kg of NIL emission fish Energy Specific energy consumption 7 kJ/kg of fish 314 3. ANALYSIS OF PCM TECHNOLOGY FOR REPLACING ICE The specific ice consumption for the storage of the product at the retailer is 0.7 kg of ice/kg of fish and the subsequent specific GHG emissions from the ice was 61.6 kgCO2/t. A 10% material loss may be considered on an average either due to the improper cooling with crushed ice or due to prolonged holding time in the storage of fish in the informal sector. To reduce the ice consumption and thereby reduce GHG emissions and water consumption, the following alternative technologies were reviewed: ● Freezers ● Eutectic Phase Change Materials (PCM) lined boxes Freezers Freezers are large containers very similar to a refrigerator as they are used for storing food/products at a temperature below freezing point to increase the shelf life of the perishable products. Freezing is accomplished by the evaporation of a liquid refrigerant, which extracts heat from the medium to be cooled. The refrigeration cycle involves steps to remove the heat from the evaporating refrigerants (R- 22, R-32, R-404A and R-134A etc.) by again converting it into the liquid state in order that it may be used repeatedly in a continuous process. Freezers are used in formal retail shops for storing the fish, which negates the use of ice. 6 Research Article: BENEFITS, PUBLIC HEALTH HAZARDS AND RISKS ASSOCIATED WITH FISH CONSUMPTION 7 Embedded electricity consumption in ice Figure 3: Freezer used by formal fish retailers (image courtesy - IndiaMart) Some common advantages of using freezers are the versatility of the method - applicable to any size and shape. However, they require a significant upfront capital cost and require electricity connection that makes them unsuitable for the informal fish retailers. Eutectic Phase change material (PCM) lined boxes PCM boxes were chosen due to their low melting and freezing points, high latent heat transfer over a defined temperature range when the material changes phase or state 8. These boxes are economical as well as non-hazardous to use. PCMs can absorb, store, and release large quantities of latent heat over a defined temperature range when the material changes phase or state. The PCM panels are available in the market in different shapes and sizes but mainly in different ranges of temperatures. PCM panels are available in different temperature ranges 9 from 15 to -24°C and in different capacities from 50 to 1,000 liters10. The PCM boxes available in the market are offered under two types of business models as presented below: 1. Capital expenditure (Capex) model: This model is a one-time investment model where the upfront capital expenditure (Capex) ranges from 38-451 USD/box based on the capacity of the insulated boxes. In addition, the need to have a fixed infrastructure to charge the PCM plates to used in the boxes makes the option unsuitable for the informal sector retailer 2. Operating expenditure (Opex) model: The charged PCM panels are provided daily along with a container for a certain price. The retailer returns the boxes and the panels to the service provider after use. This is repeated on an ongoing basis based on the quantity of usage The details of private company providing PCM boxes to the retailers is provided in the textbox below: Case study 1: PCM boxes in retail A private company, Tan90 solutions makes insulated boxes along with cooling panels (containing phase change materials) of -10 degrees Celsius, primarily for fisheries. The PCM boxes can retain temperatures of sub -10 degrees for 30 hours 11 with an ambient temperature of 40-45 degrees. According to the information provided by the company during the stakeholder consultations, the company manufactures inorganic phase change materials over a wide range of temperatures, starting from +15 to -24 degrees centigrade. The temperature range of the PCM available is +15 to -24 degrees centigrade, the PCMs are packed in different form factors which includes HDPE panels or sachets, meant for repeated usage and single use respectively. The PCM panels are provided with insulated containers which can be either boxes or bags for mid mile and mile movements. Each of the insulated boxes are accompanied by the required number 8 A review about phase change material cold storage systems applied to solar-powered air-conditioning systems. 1. Zheng L, Zhang W, Liang F. 9 https://www.tan90thermal.com/ 10 Stakeholders’ consultation with Tan90 11 Assuming that the boxes are opened for 5-10 seconds every 30 minutes, simulating the opening of boxes for sale at the last mile. of cooling panels and the available capacities of the cooling boxes range from 50-1,000 liters. The cooling panels can be frozen in commercially available chest freezers or specially designed PCM freezers/ rechargers. The company sells the insulated boxes along with the associated panels in two pricing models as detailed below: 1. Direct sales: The insulated boxes along with the PCM panels are available to be purchased directly with a one-time upfront payment which ranges from 38-451 USD/box based on the capacity of the insulated boxes. The PCM panels can be charged using chest freezers that range from 125-313 USD/unit depending on the capacity. 2. Cooling as a service model (CAAS): Cooling as a service model (CAAS) is designed for businesses who are not ready to invest in the infrastructure (PCM freezers) that are required to recharge / freeze the PCM panels, this model reduces the inventory and various costs associated with the technology such as the upfront, handling and asset costs. The insulated boxes with cooling panels are available on rent, starting from 0.08 USD per panel per day. The case study shows that switching from ice-based storage to insulated boxes with PCM technology can eliminate the use of ice for retail and significantly reduce the GHG emissions. Summary The financial, economic, and environmental assessment of PCM lined boxes have been summarized in the table below: Table 3: Summary of various assessments for the alternative options PCM lined boxes - PCM lined boxes - Assessment Parameter Unit Freezers Capex model Opex model Specific ¢/ kg of capital 0.1712 0.0513 - fish expenditure Financial Specific ¢/ kg of operational 0.31 0.01 1.22 fish expenditure Loss of % 0% 0% 0% 12 Working Life of freezers considered 10 years 13 Working life of PCM lined boxes - Capex model considered 10 years PCM lined boxes - PCM lined boxes - Assessment Parameter Unit Freezers Capex model Opex model material 14 Space % 100% 90% 90% utilization Stress on No use of ice leading to water saving (0.7 kg of ice saved per water - kg of fish) system Additional employment for Additional employment providing charged Economical Employmen No additional for sales and - PCM boxes t employment maintenance of PCM regularly and boxes maintenance of the same Improved The average material loss % is reduced due to proper cooling - Hygiene unlike ice in insulated boxes Specific kgCO2/ kg GHG 0.025 0.001 0.001 of fish emission Environment al Specific GHG kgCO2/ kg Negligible 0.001 0.001 (Refrigerant of fish ) emission Specific kJ/kg of Energy 111 5 5 energy fish The PCM lined boxes are estimated to have a lower specific capital expenditure (by 37%) and specific operational expenditure (by 96%) than freezers in comparison to the same. The fuel is electricity in the PCM lined boxes and freezers, whereas the conventional insulated boxes use ice. The total specific GHG emissions in case of PCM lined boxes is the lowest out of all the currently used storages (96% and 91% GHG emission reduction in comparison to insulated boxes and freezer). The cost economics of switching to the PCM technology depends on the model of offerings (Capex model/ Opex model). The PCM line boxes - Capex model involves a large upfront capital investment of insulated boxes, PCM panels, freezers for recharging the PCM panels, annual grid electricity charges and maintenance costs is borne by the one who owns; it was observed to be unsuitable for small scale informal sector retailers. The subsequent savings in the PCM lined box - Opex based pricing model is that the capital cost involved is completely avoided and the operational cost involved is 98 times the operational cost involved in PCM lined box - Capex based model (Also 65 % reduced specific operational for PCM lined boxes - Opex model in comparison to the insulated boxes). 4. CURRENT POLICY The relevant past and ongoing policies and programmes at relevant to the fish retail sector in India were reviewed and summarised as follows: 14 Assuming that the stock of fish is sold within 36 hours of purchase from wholesale market 1. PMMSY (Pradhan Mantri Matsya Sampada Yojana) 15 ○ Concerned Department: DoF (Department of Fisheries), Ministry of Fisheries, Animal Husbandry and Dairying ○ Budget: The allocated budget under this scheme for the period FY 2021 to FY 2026 is 20,050 Cr. Rs. with a central share of 9,407 Cr. Rs. and State share of 4,880 Cr. Rs. ○ Objective of policy: The main focus of the scheme can be divided into 3 broad categories as follows: ● Enhancement of production and productivity ● Infrastructure and Post harvest management ● Fisheries management and regulatory framework ○ Incentives: B category (Infrastructure and Post Harvest Management) involves acquisition of iceboxes on bicycles shall be facilitated up to 40% of the project/unit cost for General category and 60% of the project/unit cost for SC/ST/Women. The project/unit is 10,000 Rs. /unit including bi-cycle and icebox. The Central share shall be 60% and the state share be providing 40% share. ○ Status: Till date 3,102 fish retail markets, fish kiosks have been established. The proposal sanctioned till date is 7,268 Cr. Rs. From a state level, DoF, Govt. has established 20 refrigerated fish vending kiosks for fish vendors with ICAR-CIFT. The total cost of kiosks 60 Rs. /unit (Including GST). The fish vending kiosk setup has a capacity of 100 kg of fish out of which 20 kg is under chilled storage and the remaining 80 kg in insulated box which is a direct indication of promoting ice usage. Other South Asian countries like Bangladesh also have policy goals which are dedicated to poverty alleviation by creation of self-employment in fisheries. The fisheries policy for transportation and marketing openly endorses the use of ice for preservation, transportation, and marketing.16 The policy benefits revolve around capital subsidy and infrastructural support. The prevailing policies do not explicitly provide support for the adoption of alternatives to insulated boxes. 5. ROLE OF WOMEN AROUND THE TECHNOLOGIES There is a significant contribution and role of women in the value chain. In the informal retailers, women are the major beneficiaries. The PCM boxes will help in lowering the operational cost incurred on a daily basis (due to reduction in the consumption of ice for cooling in insulated boxes). The other added advantage of the proposed solution is prevention of a health hazard, hand eczema 17, from prolonged exposure to water which is prevalent in fish retail. 15Pradhan Mantri Matsya Sampada Yojana 16 National Fisheries Policy, Bangladesh 17 Article: Wet-work Exposure: A Main Risk Factor for Occupational Hand Dermatitis 6. CONCLUSION The extensive dependence on ice for storage of fish in the informal sector was the usage of insulated boxes. The specific ice consumption in the retail sector across various value chains was found to be 0.7 kg per kg of fish. The consumption of ice, a GHG intensive product, is a major GHG contributor in the storage of the produce. The estimated specific GHG emissions for the storage of the fish in the various value chains in the informal sector was 61.6 kgCO2 per ton of material stored. A review of the success stories in the area of switching to Insulated boxes with PCM panels showcase the possibility of GHG emission reduction by the elimination of consumption of ice. The proposed option can yield an estimated reduction of specific GHG emissions of 95% with an estimated savings in the specific operational costs of 99.6%. The financial, economic, environmental and energy assessments for the alternative storage was reviewed are summarised in the table below: Table 4: Summary of various assessments for the proposed fuel switch options Assessment Switch to PCM lined boxes Financial ● 8 times increased specific capital expenditure in comparison to the insulated boxes ● 99.6% reduction in specific operational expenditure in comparison to the insulated boxes Economic ● 100% water savings achieved ● Increased employment and hygiene Environmental 95% reduction in total specific GHG emissions (fuel + refrigerant) Energy 98% reduction in specific energy used in comparison to the insulated boxes The proposed storage switch option is attractive from the financial, economic, environmental and energy perspectives. The policies reviewed provide benefits around capital subsidy and infrastructural support. Certain policies openly endorse the use of ice for preservation, transportation, and marketing of fish in India and Bangladesh as well. The prevailing policies do not explicitly provide support for the adoption of alternatives to insulated boxes.