Cold Storage Market: US Cold & Divert Drive Sustainability Shift

US Cold Storage, Divert Convert 2.5M Lbs of Unsold Food into Renewable Energy and Fertilizer 

WEST CONCORD, Massachusetts — August 17, 2026 — United States Cold Storage (US Cold) and circular economy firm Divert Inc. have announced that their operational partnership processed more than 2.5 million pounds of unsold food and beverage products across seven California facilities within its first 15 months, converting the material into renewable natural gas (RNG) and agricultural fertilizer. The development marks a significant sustainability milestone for the Cold Storage Market, which was valued at USD 159.92 billion in 2024 and is projected to reach USD 346.07 billion by 2030, expanding at a CAGR of 13.8%. 

The partnership channels unsold products from US Cold's refrigerated warehousing network to Divert's Integrated Diversion & Energy Facility in Turlock, California. There, proprietary High-Recovery Depackaging (HRD) technology and anaerobic digestion convert the material into renewable natural gas, nutrient-rich agricultural fertilizers, and recovered water — keeping value circulating locally rather than routing waste to landfill. 

The initiative reflects a broader industry shift among cold chain operators and food and beverage brands to comply with state-level landfill diversion mandates, meet corporate sustainability targets, and manage product disposals with greater accountability. Brands such as Oatly, whose products move through US Cold's network, are leveraging the partnership to extend their zero-waste-to-landfill commitments through the end of the supply chain. 

Key Highlights: 

• 2.5M+ pounds of unsold food and beverage products securely processed from seven US Cold facilities in California over 15 months 

• Over 8,500 MMBtu of renewable natural gas generated and delivered to the pipeline 

• ~450 metric tons of CO₂ equivalent emissions avoided, equivalent to approximately 40 trips around the equator by an average gasoline-powered vehicle 

• Divert's Turlock facility, at full capacity, can annually produce enough renewable energy to power more than 4,000 homes and generate sufficient liquid nitrogen fertilizer to support 112 million pounds of strawberries 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, the Divert–US Cold Storage partnership exemplifies an accelerating trend within the cold storage sector: the integration of circular economy infrastructure directly into refrigerated warehousing operations. NMSC analysts note that as state-level landfill diversion regulations tighten — particularly across California — cold storage operators face mounting pressure to adopt end-of-life product management solutions that are both compliant and commercially scalable. Partnerships of this nature are expected to become a competitive differentiator for large-scale refrigerated logistics providers, particularly as food and beverage brands increasingly extend their sustainability mandates beyond manufacturing into third-party logistics networks. 

Industry Outlook: 

The Divert–US Cold Storage collaboration signals a structural evolution in how cold chain operators approach unsold inventory and product disposal. With Divert reporting over 7,800 active customer locations across the food supply chain and the USDA estimating approximately 930 refrigerated warehouse locations nationally, the potential for scaling this model across the broader cold storage sector is substantial. 

As the global cold storage market advances toward its projected USD 346.07 billion valuation by 2030, sustainability performance is emerging as a core operational and commercial priority — not merely a compliance obligation. Cold storage providers that embed circular economy capabilities into their service offerings are positioned to attract food and beverage clients with ambitious environmental commitments, reinforcing long-term customer retention and regulatory resilience. 

Source: Biomass Magazine 

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Prepared By: Sanyukta Deb