CrossBoundary Energy (CBE) has secured a US$40M to build its rapidly expanding portfolio of clean energy projects in Africa.
The equity-like capital investment was from a new partner, Impact Fund Denmark (IFDK).
According to Thomas Hougaard, Managing Director and Co-Head of Green Energy and Infrastructure at Impact Fund Denmark, “By supporting CrossBoundary Energy, we are contributing to sustainable development, reducing carbon emissions, and improving the quality of life for communities across Africa. We also see significant growth opportunities on the continent, where innovative energy solutions can unlock economic potential and drive inclusive progress.”
CrossBoundary Energy is currently constructing the first solar/BESS baseload plant in Africa after signing Africa’s largest commercial and industrial PPA with Kamoa Copper SA, the world’s fifth-largest copper mine in the Democratic Republic of the Congo. Providing renewable energy to the mine will bolster the mine’s output and increase its economic impact in the region.
Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy, said, “Our zero-CapEx model lowers the barrier to entry for African businesses seeking stable, clean, and cost-effective power. Once companies’ balance sheets are freed up to invest in their core value-generating activities rather than power provision, they can reach and exceed their targets, unlocking further economic value in the regions in which they operate.”
Energy access is frequently cited as a major hindrance to African businesses. In countries with weak or unreliable electricity grids, the deployment of solar PV and battery energy storage systems (BESS) can rapidly bring additional power capacity to sectors that require clean and stable electricity. Flexible power purchase agreements (PPAs) enable African enterprises to access these energy solutions without the need for CapEx outlay.
Tom Roberts, Associate Principal at CrossBoundary Energy, said, “The investment from IFDK is crucial for CBE to provide its service offering to clients like Kamoa Copper. IFDK’s dedicated collaboration enabled us to successfully navigate cross-border legal complexities to close the transaction within 3 months. We look forward to an ongoing partnership with IFDK.”