Climate-focused blended finance investment manager, Climate Fund Managers (CFM), has invested USD 3.1 million to co-develop a 30MW municipal waste-to-energy project in partnership with Infinitum Energy in the West African country of Sierra Leone.
The waste-to-energy project will be located in Sierra Leone’s capital Freetown and aims to address critical waste management and energy access challenges in the West African country.
CFM backed the project through its EU-supported Climate Investor Two Fund. The investment by CFM will help enable the project to advance critical activities such as detailed waste studies, permitting, early-stage works and accelerating the path to financial close for construction.
Furthermore, upon completion of the development phase, CFM via its Climate Investor Two fund will have the right to fund up to 75% of the required construction equity funding for the project.
“This waste-to-energy project exemplifies our commitment to creating scalable solutions that address climate, social, and economic challenges in Africa. By transforming Freetown’s waste into a sustainable energy source, we’re not only reducing emissions but also catalysing economic opportunities and improving community health,” said Darron Johnson, Regional Head of Africa at CFM.
“This partnership underscores the importance of blended finance to absorb early-stage project risks and develop innovative infrastructure solutions in emerging markets,” Johnson added.
Waste-to-energy project to improve energy access and waste management in Sierra Leon
Currently, around 22% of Sierra Leone’s population has access to electricity, with approximately 40% of that energy coming from costly and environmentally damaging fossil fuels. The waste-to-energy project aims to expand energy access in the country while offering a more sustainable alternative.
The project also seeks to tackle significant waste management issues in Freetown, Sierra Leone’s capital, where rapid urbanisation and insufficient infrastructure have led to widespread challenges. Illegal dumpsites have become a major concern, contributing to serious health risks, obstructing waterways and increasing flood risks, as well as releasing harmful substances into the environment.
Once operational, the waste-to-energy project will process an estimated 365 kt of municipal solid waste a year, reducing reliance on environmentally harmful dumpsites and improving public and environmental health. An estimated 250 direct jobs will be created, and support 1,500 positions in the local waste management value chain.
Additionally, the project will provide reliable energy access to more than 3.3 million people and directly avoid over 94,000 tonnes of CO2 equivalent emissions annually.
“Infinitum is proud to partner with CFM on this landmark project. By leveraging proven technology and a robust public-private partnership model, we are addressing two critical issues facing Freetown: waste management and reliable energy access. Together, we are demonstrating what is possible when private sector innovation and Government collaboration come together to pave the way for a cleaner, greener future for Sierra Leone,” said Lindsay Nagle, CEO of Infinitum Energy.
