July 14, 2022
Norfund and KLP to invest in CrossBoundary Energy to expand the company’s C&I portfolio across Africa.
Norfund and KLP, Norway’s largest pension company, will together invest USD 40 million in equity in CrossBoundary Energy (CBE), a leading developer, owner, and operator of commercial and industrial renewable energy systems in Africa. The investment will be made through the joint company KLP Norfund Investments AS.
This commitment will allow CrossBoundary Energy to further scale its investments in renewable energy solutions for commercial and industrial businesses across Africa.
The $40M 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.
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 benefitting from cheaper, cleaner, and more reliable power.
We believe that distributed renewables are playing a critical role in driving towards the clean and sustainable growth of the commercial and industrial sector across Africa. The cost savings offered by renewable energy, coupled with the reliability of battery energy storage systems, allow companies like CrossBoundary Energy to provide the business sector with immediate cost savings whilst significantly reducing their emissions.
Kristoffer Valvik, Investment Manager, Norfund
CrossBoundary Energy is currently delivering a portfolio of $188M 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 a number of market-leading companies present in Africa, including Unilever, Diageo, Rio Tinto, Heineken, and AB InBev.
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 seek to deliver an operational portfolio of over $300M in assets within the next 5 years.
Pieter Joubert, President and Chief Investment Officer, CrossBoundary Energy
