The new Norwegian Climate Investment Fund, managed by Norfund, invested about 600 mn NOK (60 mn USD) in equity in SAEL, an Indian solar, and agri waste-to-energy company. The investment will contribute to offsetting more than 2.8 million tons of CO2 emissions and improving air quality by reducing stubble burning.
Each year farmers in Northern India are forced to burn crop stubble in their fields to remove paddy residue, resulting in severe air pollution in the region. SAEL has developed a business model where crop residues are used as fuel in waste-to-energy projects. It is India’s largest agri waste-to-energy producer and currently has more than 20 projects both operating and under construction in solar and agri waste-to-energy space.
The Climate Investment Fund, managed by Norfund, announced at an event in New Delhi on 15 January that it will be investing equity in SAEL. The goal is to support the company’s ambition to grow its portfolio to 3GW over the next five years by adding 100MW of new biomass and 400MW of new solar capacity annually in addition to its existing portfolio of 600 MW.
By collecting the crop stubble to be used as fuel in our waste-to-energy plants, we contribute to combating one of our nation’s greatest health issues, while at the same time creating local employment and extra income for farmers and local entrepreneurs. This partnership with Norfund will fast track implementation of these projects, making us one of the leaders in this space”, says Jasbir Awla, Chairman and Managing Director of SAEL Limited.
“We are thrilled to be able to contribute with the necessary financing for SAEL to reach its ambitions and contribute to reducing climate emissions and local pollution while contributing to meet India’s energy needs”, said Mark Davis, EVP Renewable Energy in Norfund.
“This investment not only increases the access to clean energy and improves incomes for farmers but can also reduce stubble burning related air pollution. I am happy that Norway can contribute to this through our new climate investment fund,” says Norwegian Ambassador Hans Jacob Frydenlund.
For more information on Norfund visit www.norfund.no
