Project detail - FASOBIOGAZ S.A.R.L.

FASOBIOGAZ S.A.R.L.

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Who is our client

FMO is investing into Fasobiogaz SarL (“Fasobiogaz”), an SPV established under the laws of Burkina Faso with a repayable grant of EUR 0.2 million. The Sponsor is Catalyse Energy B.V., a Dutch company that invests in this and other renewable energy projects.

Funding objective

FMO’s repayable grant of EUR 0.2 million will add to an amount invested by its shareholders of EUR 1.5 mln and a grant from RVO to complete two biodigesters in Ouagadougou, Burkina Faso. The biodigesters will receive organic waste from a slaughterhouse and a brewery nearby and use the gas to produce electricity that is sold to the national electricity company SONABEL. The organic material that remains in the biodigesters is taken out and sold as fertiliser.

Why we fund this project

This is a greenfield renewable energy development in a low-income sub-Saharan country and the first privately owned larger biogas project in the country. Fasobiogaz will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa at a lower price than current thermal power stations. Also, it will produce organic fertiliser in country that can replace imports. The FMO repayable grant with be repaid after 5 years if the client reaches certain financial targets and if those targets are not met, it will become a grant.

Environmental and social rationale

Part of the grant will be used to pay for a consultant that will assess the compliance with the IFC Performance Standards and prepare a plan how compliance can be achieved.

Region
Africa
Country
Burkina Faso
Sector
Energy
Signing date
7/13/2020
Total FMO financing
EUR 0.20 MLN
Fund
Access to Energy Fund
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)