Nigerian cold-storage businesses are increasingly adopting gas-powered electricity as they seek to reduce rising energy costs and protect their operations from unreliable grid supply.
A Lagos-based cold-storage and frozen-food distribution company has commissioned a 1-megawatt gas power plant supplied and installed by Clarke Energy, a multinational distributed-energy provider.
The facility now powers the company’s refrigeration and cooling equipment, including compressors and other essential systems. It replaces diesel generators that have traditionally provided backup electricity for businesses dealing with inconsistent power supply.
Reliable electricity is particularly important for cold-chain operators because refrigeration systems must run continuously to preserve food and other temperature-sensitive products. Power interruptions can lead to spoilage, product losses and higher operating costs.
Diesel generation has helped businesses bridge the gap, but the cost of fuel, maintenance and bulk supply has made it an expensive option for cold-storage operators. Gas-fired generation is emerging as an alternative, with operators highlighting its lower running costs and cleaner-burning characteristics.
Yiannis Tsantilas, managing director of Clarke Energy for Sub-Saharan Africa, said dependable electricity is essential to food preservation and 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 said gas-powered generation could provide large cold-storage facilities with a more cost-effective and dependable source of electricity while helping them manage energy expenses.
Tsantilas also said Clarke Energy expects more opportunities in Nigeria’s cold-chain industry as investment in food storage, processing and distribution infrastructure grows.
“We see significant opportunities for the adoption of gas-powered generation within the cold-chain industry,” he said, describing reliable power as “a critical enabler of long-term success” for operators.
The development reflects a wider move among Nigerian businesses towards captive power, where companies generate electricity for their own operations rather than depending entirely on the national grid.
The shift is being seen across several industries as businesses seek greater control over electricity supply and protection from power outages and fluctuations in the cost of imported diesel. (Businessday NG)
