ColdHubs: solar powered, cooling-as-a-service solution | Knowledge Hub | Circle Economy Foundation
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Business case
ColdHubs: solar powered, cooling-as-a-service solution
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By offering smallholder farmers a flexible, pay-as-you-store subscription option, ColdHubs strives to make cold chain solutions more accessible while reducing food waste and CO2 emissions.

Problem

In 2019, around 931 million tonnes of food waste was generated worldwide. Of this waste, 61% was household waste, 26% from food service and 13% from retail. Nearly a quarter (24%) of food’s emissions come from food lost in supply chains or wasted by consumers. In total, emissions from food waste account for 6% of global greenhouse gas (GHG) emissions. The food lost in supply chains has consequences for food security, especially in Nigeria, which ranks 107 out of 113 countries on the Global Food Security Index. What’s more, 12.7% of the Nigerian population is undernourished and 35.3% of children experience stunted growth. Adding insult to injury, nearly 40% of Nigeria’s food is lost before it even reaches end consumers. To produce 40% of its food, the country utilises 31% of its land, emitting close to 5% of Nigeria’s GHGs. Further, electricity shortages in rural areas make it extremely difficult to keep food cold, resulting in waste. There is a pressing need to rethink food storage, reduce food waste and increase food security for Nigerians.  

Solution

To mitigate food waste and emissions in Nigeria, a post-harvest, solar-powered, cooling-as-service solution called ColdHubs was established in 2015 by entrepreneur Nnaemeka Ikegwuonu. As post-harvest losses in vegetables and fruits are a big challenge in Sub-Saharan Africa, ColdHubs aims to reduce food waste by filling in the gaps at key points along the food supply chain. ColdHubs are 10-foot-square storage units that have the capability to preserve fresh food for up to 21 days. Moreover, as ColdHubs are powered by solar panels, the company estimates it prevents approximately 1 million kilograms of CO2 pollution every year, all while keeping the storage units running 24/7. ColdHubs offers a solution to storing and preserving perishable foods that also meets the financial needs of smallholder farmers. Farmers pay as little as 25 cents per day to store a crate of produce in the units. They are, therefore, installed in many major food production and consumption centres.

Outcome

In 2020, ColdHubs saved more than 42,000 tonnes of food, as well as 1,040,866 kilograms of CO2, via its 54 operational units. By cutting food loss nearly in half, ColdHubs was able to increase the income of over 5,200 small farmers, retailers and wholesalers by 50%. The enterprise also attempts to create gender mainstreaming by providing more jobs to women—66 jobs were created for unemployed women in 2020. This is significant as the Nigerian agricultural sector contributes 35% to all employment and supports 90% of rural livelihoods.

Additional information

Photo by Devin Rajaram on Unsplash.

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