Sistema.bio (Follow on)
- Business model
- Waste to Energy
Investment name: Sistema.bio
Contract signature date: Dec 2020
Region: Sub Saharan Africa
Country: Kenya, India, Latin America
Sector: Waste to Energy
Total ElectriFI Financing: USD 600,000 (EUR 492,000)
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Sistema.bio manufactures, sells, installs, finances and services a range of modular biogas digesters and accessories design for smallholder farmers. Since its inception in 2010 the company has installed over 13.500 units from hubs in Latin America, Kenya and India. Designed to serve farms from two to 200 cows, the product range varies in size from a single 6m³ biodigester, to a number of interconnected 40m³ units. With the biogas produced, an average household of five can do all its cooking with the smallest unit. Besides cooking, the larger systems can also be used for water or space heating and mechanical/electrical appliances such as a chaff cutter, water pump or milking machine.
After an initial equity investment of USD 2 million in 2019, EDFI ElectriFI will now invest another USD 600,000 (convertible note) alongside existing investors Engie RDE and Co Capital, as well as new investors. This current financing is considered a bridge round to a further capital increase in 2021, to enable the company to continue its scale up and international expansion principally in Kenya and India.
Why does ElectriFI want to fund the project:
EDFI ElectriFI supports Sistema.bio because of the high E&S impact of its biodigesters. By replacing solid fuel with clean renewable energy cooking solutions while ensuring sustainable waste management, and the production of biofertilizer. Sistema.bio therefore positively impacts the health of its numerous beneficiaries. Finally, the company has proven best-in-class technology, and a very complete service offering including financing and thorough after-sales and quality management.
Environmental and Social Rationale:
The Project is rated category B.
Activities come with minimal environmental and social risks and potential negative impacts. Key environmental and social policies and procedures were developed. IFC Performance Standards 1 to 3 may be applicable.