Divert and United States Cold Storage Partner to Convert Unsellable Food into Renewable Energy
Divert, Inc., a leader in circular economy solutions aimed at eliminating food waste, has announced a strategic partnership with United States Cold Storage (USCS), a premier provider of refrigerated warehousing and logistics. The collaboration focuses on an innovative food recycling program that diverts food and beverage products that can’t be sold or donated—turning them into renewable energy and nutrient-rich soil amendments.
This partnership represents a major step forward in sustainable operations, enabling food logistics and cold storage sectors to take meaningful action against landfill waste, greenhouse gas emissions, and food waste inefficiencies.
Shared Vision for Sustainability and Circular Economy Impact
The goal of this collaboration is clear: to reduce environmental impact while simultaneously supporting regulatory compliance and improving operational efficiencies.
“This collaboration represents a meaningful step in advancing our sustainability objectives by reducing environmental impact, strengthening compliance, and driving greater efficiencies across our operations,” said Sara Cook, Sustainable Development Manager at United States Cold Storage. “We are proud to collaborate with Divert, a company that shares our commitment to innovation and environmental stewardship, and we look forward to building a long-standing relationship.”
USCS, which operates dozens of cold storage facilities across the country, is beginning this initiative at its California-based locations—a state known for progressive environmental regulations, particularly around organic waste.
Turning Unsellable Food into Renewable Energy at Divert’s Facility
Under this program, food and beverage items that are unsellable and not suitable for donation—due to damage, spoilage, or expiration—are collected from USCS sites and transported to Divert’s Integrated Diversion & Energy Facility in Turlock, California.
Divert’s facility is specifically designed to handle food and beverage waste using a combination of proprietary depackaging technology and anaerobic digestion. Here’s how it works:
- Products are depackaged, separating food contents from packaging material.
- The organic material is then subjected to anaerobic digestion, a natural process where microorganisms break down the waste in an oxygen-free environment.
- The result is carbon-negative renewable energy, which can be used to power homes or businesses, and nutrient-rich soil amendments that benefit agricultural operations.
By diverting waste from landfills, the facility helps reduce methane emissions, a powerful greenhouse gas released when organic waste decomposes in landfills.
Meeting Regulatory Goals and Driving Operational Benefits
One of the key drivers of this program is compliance with California Senate Bill 1383 (SB 1383), a landmark law that requires the state to reduce organic waste disposal by 75% by 2025 and recover at least 20% of edible food that would otherwise be thrown away.
Through its partnership with Divert, USCS is not only complying with this legislation but also positioning itself as a leader in sustainable cold storage logistics. The program creates a repeatable, scalable model that can be expanded to other facilities in the USCS network.
“Creating reliable and flexible diversion pathways to support our customers across the food value chain represents a massive opportunity to drive environmental and operational impact,” said Andrew Johnston, Vice President and General Manager of Industrials at Divert. “Our collaboration with USCS demonstrates how the cold storage industry can turn a challenge into a value-generating solution—meeting compliance requirements, reducing emissions, and unlocking positive ESG and business outcomes.”
Data-Driven Decisions for Better Waste Management
In addition to the environmental benefits, Divert’s system offers data and analytics that help USCS improve its resource management decisions. By understanding what types of products are being wasted, in what quantities, and at which locations, USCS can identify inefficiencies in its supply chain and reduce food waste at the source.
This intelligence layer transforms what is typically a waste management challenge into a source of operational insights and continuous improvement.
A Model for the Food and Logistics Industry
Divert’s work extends far beyond this single partnership. The company works with a wide network of food manufacturers, retailers, distributors, and logistics providers across the United States. Its mission is to reshape the food value chain so that waste is minimized, and all materials are either recovered, reused, or repurposed.
By collaborating with USCS—a company that plays a central role in food distribution—Divert demonstrates how the logistics sector can be an active participant in building a more sustainable food system.
As other states and companies face growing pressure to address food waste and climate impact, partnerships like this offer a scalable, effective model for sustainable transformation.
Looking Ahead: Expanding the Program and Its Impact
While this program currently focuses on USCS’s California operations, both companies have expressed interest in expanding the initiative to more regions. With increasing regulatory pressure and stakeholder expectations around Environmental, Social, and Governance (ESG) performance, the demand for such solutions is only expected to grow.
This collaboration marks a milestone in sustainable logistics—where environmental responsibility meets innovation, and waste is no longer seen as a liability, but a resource for a cleaner, more circular future.
About Divert
Divert is a circular economy company on a mission to prevent food from being wasted through nationwide infrastructure and innovative technologies. Founded in 2007, the company provides an end-to-end solution that leverages data to prevent waste, facilitates edible food recovery to provide to people in need, and transforms unsold food products into renewable energy to power communities. T
hrough this integrated approach to reducing wasted food–Prevent, Provide, Power™–Divert works with customers across the U.S. to reduce wasted food and positively impact people and the environment. Divert is a portfolio company of Ara Partners, a global private equity firm that is decarbonizing the industrial economy. For more information on Divert, Inc., please visit www.divertinc.com and follow the company on LinkedIn, X, Threads, Instagram, Facebook, and YouTube.
About Ara Partners
Ara Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington, D.C., and Dublin.
Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of December 31, 2024, Ara Partners had approximately $6.2 billion of assets under management. For more information about Ara Partners, please visit www.arapartners.com.
About United States Cold Storage
United States Cold Storage, Inc. (USCS), Camden, NJ, is a premier provider of public refrigerated warehousing (PRW) and related logistics services throughout the USA. With roots dating back to 1899, USCS has long served a diverse customer base with requirements ranging from primary storage to fully integrated third-party logistics.
The company offers more than 424 million cubic feet of temperature controlled warehouse and distribution space in 40 facilities located in 13 states including California, Delaware, Florida, Georgia, Illinois, Indiana, Nebraska, North Carolina, Pennsylvania, Tennessee, Texas, Utah and Virginia. USCS is the third largest PRW Logistics provider in North America. It is a subsidiary of the U.K.’s John Swire & Sons Ltd.
