CrossBoundary Energy (CBE) has completed a US$40 million equity investment received from Norfund, the Norwegian Investment Fund for developing countries, and KLP, Norway’s largest pension company, through their joint company KLP Norfund Investments AS.
The leading developer, owner, and operator of commercial and industrial renewable energy systems in Africa, will leverage this commitment to further the acceleration of its investments in renewable energy solutions for commercial and industrial businesses across Africa.
The $40 million commitment is a continuation of Norfund and KLP’s earlier investments in the C&I sector and endorses the scale and maturity of the distributed generation sector in Africa. The secured funding is in addition to $40 million in equity invested in CrossBoundary Energy by ARCH Emerging Markets’ Africa Renewable Power Fund in 2020.
CrossBoundary Energy provides tailored, fully financed renewable energy solutions to its corporate customers allowing them to avoid upfront capital expenditure and technical risks, whilst still benefiting from cheaper, cleaner, and more reliable power.
The renewable energy company is currently delivering a portfolio of $188 million in projects for 30 corporate customers across 14 countries in Africa, comprising 150 MWp of solar PV assets, 50 MWh of battery energy storage assets, and 12 MW of wind assets. CrossBoundary Energy is the renewable energy provider of choice for several market-leading companies present in Africa, including Unilever, Diageo, Rio Tinto, Heineken, and AB InBev.
Pieter Joubert, President and Chief Investment Officer, CrossBoundary Energy noted: “We are very excited to welcome Norfund and KLP as investors. Their commitment is aligned with our belief that the business sector across Africa should be able to benefit from cheaper, cleaner and more reliable power. This investment validates CrossBoundary Energy’s position as a trusted provider of customer-centric renewable energy solutions to the African business community. We look forward to drawing on Norfund’s significant experience as we seek to deliver an operational portfolio of over $300M in assets within the next 5 years.”
Kristoffer Valvik, Investment Manager, Norfund, said the investment firm believes that distributed renewables are playing a critical role in driving toward the clean and sustainable growth of the commercial and industrial sectors across Africa.
“The cost savings offered by renewable energy, coupled with the reliability of battery energy storage systems, allows companies like CrossBoundary Energy to provide the business sector with immediate cost savings whilst significantly reducing their emissions, and creating employment in the renewable energy sector. CrossBoundary Energy has secured a leading portfolio of high-quality assets and we are excited to support them as they continue to scale.”
Aage Schaanning, Group Chief Financial Officer, KLP, added that they are pleased to support the further development of CrossBoundary Energy’s portfolio of distributed renewable energy systems and are confident that its strong business practices will boost sustainable economic development on the African continent and deliver stable and predictable returns for KLP’s owners.
In his comment, William Barry, Managing Director, ARCH ARPF, stated: “We are extremely pleased with the progress made by CrossBoundary Energy following our investment in 2020, with their portfolio growing ten-fold over the last two years. CrossBoundary Energy has established itself as a pioneer and clear market leader in the commercial and industrial renewable energy sector across Africa, and we look forward to supporting the next phase of growth enabled by Norfund and KLP’s investment.”
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