Nigerian cold storage operators are increasingly turning to captive gas-fired power generation as businesses across the food preservation and logistics sector look to curb soaring energy costs and shield operations from an unreliable national grid.
A Lagos-based cold storage and frozen food distribution company has commissioned a 1-megawatt gas power plant supplied, installed and commissioned by Clarke Energy, a multinational distributed energy provider, marking the firm’s entry into Nigeria’s expanding cold-chain market.
The plant now supplies electricity to the company’s refrigeration and cooling systems, including compressors and other essential facility loads, replacing reliance on diesel generation that has long been the default backup for Nigerian businesses navigating an inconsistent grid.
For cold-chain operators, power reliability is not a convenience but an operational necessity. Refrigeration units must run continuously to preserve product quality and meet food safety standards; even short outages can spoil inventory and trigger significant losses. In a market where grid supply remains patchy, that has pushed energy costs to among the highest line items for food processors, pharmaceutical storage firms and agricultural distributors alike.
Diesel has traditionally filled the gap, but at a steep price. Fuel costs, maintenance and the logistics of sourcing diesel in bulk have made backup power one of the most expensive parts of running a cold-storage business in Nigeria. Gas-fired generation offers an alternative that companies say is both cheaper to run and cleaner-burning, while still capable of providing the round-the-clock output cold storage facilities require.
Yiannis Tsantilas, managing director of Clarke Energy for Sub-Saharan Africa, said the project underscores the central role reliable power plays in food security.
‘The cold-chain industry plays a vital role in food preservation, food security, and the reduction of post-harvest losses,’ Tsantilas said. ‘Maintaining uninterrupted refrigeration requires reliable power that businesses can depend on around the clock.’
He added that gas-powered generation can give large-scale cold storage operators a cost-effective route to dependable electricity, helping them manage energy expenses while improving resilience.
Tsantilas said Clarke Energy sees room for further expansion in the sector as Nigeria’s food storage, processing and distribution infrastructure continues to build out.
‘We see significant opportunities for the adoption of gas-powered generation within the cold-chain industry,’ he said, adding that dependable power will be ‘a critical enabler of long-term success’ as operators balance productivity with preservation standards.
The Lagos installation is part of a broader shift among Nigerian commercial and industrial users toward captive power – self-generated electricity that gives companies more control over supply than they can get from the national grid.
Industry watchers say the trend has accelerated as businesses across sectors, not just cold storage, look to insulate themselves from outages and price volatility tied to imported diesel.