CrossBoundary Energy Raises US$40M

The Norwegian Investment Fund for Developing Countries (Norfund) and KLP, Norway’s largest pension company, through their joint company KLP Norfund Investments, have completed a US$40 million equity investment in CrossBoundary Energy (CBE), a developer, owner, and operator of commercial and industrial renewable energy systems in Africa.

The $40M commitment supports the size and maturity of the distributed generation industry in Africa and is a continuation of Norfund and KLP’s past investments in the C&I sector. The secured funding is in addition to the $40 million in equity that the Africa Renewable Power Fund of ARCH Emerging Markets will invest in CrossBoundary Energy in 2020.

We are thrilled to welcome Norfund and KLP as investors, says Pieter Joubert, President and Chief Investment Officer of CrossBoundary Energy. Their dedication is in line with our conviction that the commercial sector in Africa should have access to less expensive, greener, and more dependable power. This investment confirms CrossBoundary Energy’s standing among the African business community as a reliable supplier of customer-focused renewable energy solutions. As we work to provide an operating portfolio with over $300 million in assets within the next five years, we look forward to leveraging Norfund’s extensive experience.

CrossBoundary Energy will be able to ramp up its investments in renewable energy solutions for commercial and industrial organizations across Africa thanks to this pledge.

For its business clients, CrossBoundary Energy offers customized, fully financed renewable energy solutions that let them avoid up-front capital expenses and technical concerns while yet enjoying the advantages of less expensive, cleaner, and more dependable power.

For 30 corporate clients spread across 14 countries in Africa, CrossBoundary Energy is now producing a portfolio of $188 million worth of projects. These projects include 150 MWp of solar PV assets, 50 MWh of battery energy storage assets, and 12 MW of wind assets. Unilever, Diageo, Rio Tinto, Heineken, and AB InBev are just a few of the market-dominating businesses present in Africa who choose CrossBoundary Energy as their renewable energy supplier.

“We believe that distributed renewables are playing a vital role in fostering the clean and sustainable growth of the commercial and industrial sector across Africa,” says Kristoffer Valvik, Investment Manager at Norfund. Companies like CrossBoundary Energy are able to offer the business sector immediate cost savings while significantly reducing their emissions and creating jobs in the renewable energy sector thanks to the cost savings provided by renewable energy and the dependability of battery energy storage systems. CrossBoundary Energy has acquired a premier portfolio of top-notch assets, and we are eager to assist them as they expand.

“We are really delighted with the progress made by CrossBoundary Energy following our investment in 2020, with their portfolio rising tenfold over the previous two years,” says William Barry, Managing Director of ARCH ARPF. In the commercial and industrial renewable energy industry across Africa, CrossBoundary Energy has established itself as a pioneer and undisputed market leader. We are eager to assist the next stage of expansion made possible by Norfund and KLP’s investment.

KLP Norfund Investments AS (KNI), the largest pension fund in Norway, is a joint venture between Norfund Investment Fund for Developing Countries (Norfund) and KLP. Norfund is the manager of KNI.