ColdHubs
Solar-powered walk-in cold rooms for fishermen and farmers in coastal communities
Hear the Pitch
The Problem
Most coastal communities in Nigeria’s Niger-Delta region are completely off the grid. Without refrigeration, fishermen must quickly dry or smoke fish to preserve their catch, decreasing nutritional value. Unfortunately, this also limits their income, because dry fish sells at a lower price than fresh fish.
The Solution
Through their energy-efficient, solar-powered cold rooms, ColdHubs brings refrigeration to off-grid communities, enabling fishermen and farmers to preserve perishable food. These cold rooms extend the shelf life of perishables from two to 21 days, giving farmers, retailers, and wholesalers more time to sell produce at a higher price—boosting their income.
Cold rooms are designed specifically for off-grid use and hold approximately three tons of food arranged in neatly stacked plastic crates. Rooftop solar panels generate enough power to run the hubs in all weather conditions, and an energy-efficient monoblock refrigeration unit provides reliable 24/7 autonomous refrigeration.
Market Opportunity
- An estimated 6,000 tons of fish are harvested every day in the Niger-Delta, but only about 2,000 tons are sold fresh.
- A 20 kilogram bag of fresh bonga fish is sold for between US $20 and $40, but without storage facilities, fishermen are forced to sell the same bag for between US $8 and $15.
- By renting storage space for only US $1 a night, users will be able to sell their fish for a much higher price, greatly increasing their income.
Organization Highlights
- Deployed five ColdHubs and will deploy an additional five by the end of 2018
- Awards: 2018 Entrepreneurs in Resilience Award, Swiss Re Foundation
Existing Partnerships
ColdHubs currently partners with numerous organizations to reach various technical goals, such as:
- Resource, scientific, and equipment partners for supply needs
- Global Cold Chain Alliance which facilitates understanding of the latest trends in cold chain management
- Institute for Air Handling and Refrigeration in Dresden, Germany for design consultation on their energy efficiency
Organization Goals
ColdHubs seeks to achieve the following goals:
- Raise $150,000 to construct four ColdHubs along coastal Nigeria
- Build a stronger public relations presence
- Develop a mobile payment platform to replace a cash-based business as the organization scales
Partnership Goals
To reach the goals mentioned above, ColdHubs seeks partners to:
- Provide investment and grants for their expansion in Nigeria and the larger Niger delta
- Assist in the development of a mobile payment platform under a new model or integration with an existing model
Solar powered walk-in cold rooms for artisanal fish clusters in coastal communities of Nigeria's Niger-Delta Region.
Small scale artisanal fishing, fish production, processing and trading is the major economic activity in coastal communities within the Niger Delta Region of Nigeria. In these communities there are several coastal fresh fish and other aquatic food markets; and upland markets, where smoked fish and crayfish are sold in commercial quantities.
According to the FAO, an estimated 6,000 tons of fish are harvested by ocean trawlers and artisanal fishermen everyday in the Niger-Delta, of which only about 2,000 tons are sold fresh.
Since most of the communities are off the national grid, there are no cold storage facilities available, as such most unsold fish are quickly smoked to avoid spoilage. This significantly reduces the income of fisherfolk, fish farmers, wholesalers and retailers, as fresh fish has more financial returns than smoked fish.
Our solution, ColdHubs, are modular, 100% solar-powered walk-in cold rooms, which provides 24/7 off-grid refrigeration for the storage and preservation of fresh fish and other aquatic food. The Hubs will be installed in 4 fish markets at Itu Fresh Fish Market, Akwa Ibom State, Kaa Fish Market in Tai Local Government Area of Rivers State, Nembe-Brass Fresh Fish Cluster in Bayelsa State and Ilaje Community Fish Market, Ondo State, within the reach of artisanal fishermen, wholesalers and retailers. Fresh fish will be placed in raffia bags. These bags will be stacked on stainless aluminum shelves inside the cold room. Cold room temperature, which is set permanently at -5°C, extends the shelf life of fish to about 21 days instead of 1 day without refrigeration.
The key benefits of ColdHubs to artisanal fishermen, wholesalers and retailers in coastal communities are:
a. Eliminating all forms of fresh fish spoilage completely, while making more safe, nutritious fish available for consumption.
b. Increases the household income of small scale artisanal fishermen, wholesalers and retailers, because spoilage has been eliminated and production cost is reduced.
c. Creates employment for women, by recruiting and training them to work as ColdHub Operators and Market Attendants in the markets.
- Building sustainable ocean economies
ColdHubs is innovative because its is exclusively powered by solar panels, using energy efficient monoblock refrigerating unit with natural refrigerants to minimize the environmental impact of cooling. This eliminates the need for grid or diesel generators to power cold storage for the first time.
Our pay-as-you-store US$1 per bag, business model is equally innovative. It meets the harvest and income of small scale artisanal fishermen and women. A 20 kg bag of fresh bonga fish is sold for about US$20, due to lack of cold storage, dealers sell the same 20kg bag at give away prices of between US$8-10.
ColdHubs is a solar powered walk-in cold room, specially designed to operate 100% off the grid.
The technology is a perfect fit for our solution because, the high cost of running generators and lack of sustainable alternatives is a significant obstacle to economic diversification in the Niger Delta.
ColdHubs harnesses the enormous potentials of renewable energy to power cold storage, guaranteeing uninterrupted and less expensive method of storing and preserving fish and aquatic food, as artisanal fisheries is the primary economic activity of the local population.
ColdHubs goals over the next 12 months is to deploy atleast 4 solar powered walk-in cold rooms in 4 fish markets within the Niger-Delta region benefiting atleast 200 artisanal fishermen and women in the region, within the first 12 months of installation and commissioning.
Once use of ColdHubs for fresh fish storage has been achieved, over the next 12 months; we will commence significant scaling within Nigeria targeting 100,000 fishermen within the next 3 to 5 years. This will be achieved through the design, installation and commissioning of atleast 500 ColdHubs in fish communities, clusters and markets across the Niger-Delta region.
- Adult
- Male
- Female
- Rural
- Lower
- Sub-Saharan Africa
We will reach and retain our customers leveraging on partnerships with the Artisanal Fish Dealers Market Unions in our 4 targeted markets of deployment. The market unions will inform and educate fisher men and women on the benefits, savings and additional income accrued to them through the use of ColdHubs in the markets. We have already reached out to them in the 4 markets we wish to deploy ColdHubs and presently developing a mutually beneficial Memorandum of Understanding (MoU).
ColdHubs is presently serving 320 smallholder farmers, retailers and wholesalers, who are using our 5 operational Hubs at Relief Market Owerri, Orlu Central Market, General Good Daily Market, Obowo all in Imo State and Kura Farmers Settlement Kano at the moment.
Our 5 operational ColdHubs has saved 5,722 tons of food from spoilage and increased the income of our 320 users from US$60 to US$120 per month, just by eliminating previous food spoilage they were experiencing.
We expect atleast 100 artisanal fishermen and women will be using each ColdHub within 12 months of deployment. That is 400 users using 4 ColdHubs in 12 months.
In 3 years we expect this number to significantly increase to atleast 200 artisanal fishermen and women using each ColdHub. That is atleast 800 users, using the 4 ColdHubs.
- For-Profit
- 14
- 5-10 years
Our team has extensive knowledge in smallholder agribusiness, rural logistics, distribution, business processes and technical skills in clean energy, solar cells, batteries, air conditioning, cold room design, and refrigeration. We have clear roles, responsibilities, and time commitments needed to be successful. We have diverse professional background as such, we are able to quickly identify and respond to challenges that are likely to arise as the project is being implemented.
We operate a simple pay-as-you-store revenue model. Fishermen, wholesalers and retailers pay 300 Nigerian Naira (equivalent of US$1.00) to store one 20kg bag of fresh fish per day. All Hubs are owned by ColdHubs Ltd and operated by a lady manager, who monitors the loading and unloading of the fish bags, collects user fees, and builds relationships in the market.
Our revenue model is positions us for long term sustainability and profitability because it meets the income, harvest, lifestyle and behavior of small scale artisanal fisher men and women. Normally, a 20 kg bag of fresh bonga fish is sold for about US$20 and above during the peak harvest period and from US$40 and above during the off-peak period.
Due to lack of storage facilities in the market, fishermen, wholesalers and retailers are forced to sell the same 20kg bag at give away prices of between US$8-10 during the peak season and US$10-15 off-peak period. This is a significant loss.
We are applying to Solve, to showcase the ColdHubs advantage as a technology and service to store and preserve fish and other aquatic food, while building economic opportunities for coastal communities. We anticipate that our application will receive validation comments from the Solve community, refine our deployment approach based on feedback received from the Solve community, network with interested individuals and companies and possible receive funding to advance our work.
The key barrier for our technology's success is attracting equipment financing to deploy more units within rural communities. There is also the challenge of daily management of cash, as a cash based business. We will like Solve to connect us to funding opportunities and impact investors.
- Organizational Mentorship
- Technology Mentorship
- Impact Measurement Validation and Support
- Media Visibility and Exposure
- Grant Funding
Stats
ColdHubs has saved 5,722 tons of food from spoilage and increased the household income of 320 small farmers, retailers, and wholesalers.
Solver Team
Organization Type:
For-profit
Headquarters:
Owerri, Nigeria
Stage:
Growth
Working in:
Nigeria
Employees:
14
Website:
http://www.coldhubs.com/
CEO