CrossBoundary Energy Gains $40 Million Investment from IFDK to Boost Clean Energy in Africa

Key Takeaways

CrossBoundary Energy (CBE) has received a $40 million investment from Impact Fund Denmark to expand clean energy projects in Africa.
The investment supports sustainable development by addressing climate change and enhancing energy access for businesses.
CBE is constructing Africa’s first solar/BESS baseload plant for Kamoa Copper SA, boosting local economic impact.

Investment to Boost Clean Energy Initiatives

CrossBoundary Energy (CBE) has secured a significant investment of $40 million from Impact Fund Denmark (IFDK) to accelerate its portfolio of clean energy projects across Africa. Thomas Hougaard, Managing Director and Co-Head of Green Energy and Infrastructure at IFDK, emphasized the alignment of this investment with their mission to combat climate change and support fragile regions in Africa. By partnering with CBE, IFDK aims to foster sustainable development, reduce carbon emissions, and enhance the quality of life for local communities.

Energy availability remains a critical challenge for businesses in Africa, particularly in regions with unreliable electricity grids. CBE’s deployment of solar photovoltaic (PV) systems combined with battery energy storage systems (BESS) provides a solution. This approach allows companies to access necessary energy without upfront capital expenditures thanks to flexible power purchase agreements (PPAs).

Pieter Joubert, CBE’s President and Chief Investment Officer, highlighted that their unique zero-CapEx model lowers entry barriers for African businesses in need of stable and affordable power. By reducing the financial strain associated with energy provision, companies can reinvest in their core operations, further driving economic growth and achieving their targets.

Currently, CBE is working on what will be Africa’s first solar/BESS baseload plant, recently commissioned through a major PPA with Kamoa Copper SA, the continent’s largest copper mine located in the Democratic Republic of the Congo. This renewable energy project is set to significantly enhance the mine’s production capabilities while benefiting the surrounding community.

Tom Roberts, Associate Principal at CBE, noted the importance of the investment from IFDK in enabling CBE to fulfill its commitments to clients like Kamoa Copper. He praised the swift collaboration with IFDK, which facilitated the transaction completion within three months despite complex legal considerations.

This investment follows a series of financial boosts for CBE, including a recent doubling of funding from Norfund to $80 million and a $495 million guarantee framework arranged with the World Bank’s MIGA. This framework serves to protect CBE’s assets against transfer restrictions and currency inconvertibility, enhancing the company’s growth prospects in the region.

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