New portfolio company in Tanzania scaling up access to clean cooking through biogas solutions

The third agreement with a clean cooking provider in Tanzania has been signed. The new portfolio company, ENGIE Energy Access Tanzania, will receive approx. EUR 1.3 million in MCFA funding to expand access to sustainable cooking solutions by providing farmers in rural areas with innovative biogas solutions.

Engie Mobisol UK Ltd, herein referred to as ENGIE Energy Access Tanzania, aims to provide access to biodigester technology, combined with biogas stoves, mainly to dairy farmers in rural areas in Tanzania, to address the challenges of poverty, food security and climate change. The company is a subsidiary of the ENGIE group and has been active in the Tanzanian market since 2019.

The company is well known for its solar home systems in Tanzania, and it is well placed to expand its business to biodigesters. The approx. EUR 1.3 million of results-based financing to be provided by MCFA will mobilise additional co-financing, at least doubling the total capital invested by the end of the project.

ENGIE Energy Access Tanzania will provide customers in provinces with the highest concentration of dairy farmers with an innovative biodigester technology through a PAYGo business model, enabling them to convert agricultural waste into biogas and fertiliser. The aim is to provide 2,700 clean cooking stoves combined with 1,600 biodigesters in various sizes, benefitting some 13,000 people in Tanzania by early 2029.

“We are proud to deepen our commitment to sustainable energy access in Tanzania by introducing clean cooking solutions through biogas technology. This initiative complements our existing off-grid solar operations – both SHS and mini-grids – and will enable us to deliver even greater impact for rural communities by improving health, reducing emissions and turning agricultural waste into opportunity. Together with MCFA and our partners, we are unlocking a cleaner, more resilient future for thousands of Tanzanian families,” says Joao Ferreira, Regional Country Director for Southern Africa at ENGIE Energy Access.

The MCFA project in Tanzania will be implemented together with a consortium member, Good Farmland Management Kenya Ltd, a Kenyan subsidiary of Sistema.bio, which manufactures high-quality biodigesters. The biogas kit includes a hybrid reactor, a stove and all the accessories necessary for farmers to begin utilising biogas within weeks of installation. Manure breaks down anaerobically, producing biogas that can be used for clean cooking and thermal processes to meet household needs. The digester produces a biofertiliser that can replace chemical alternatives. The kit is composed of prefabricated components optimised for reliability, packaging, transportation and easy installation.

The biodigester technology is guaranteed for ten years and is expected to last over 20 years. The majority of farmers are expected to recover their investment within 12 to 24 months. MCFA is also financing three other projects using Sistema.bio solutions in Mozambique, Zambia and Zimbabwe.

“ENGIE Energy Access Tanzania has been successful in the off-grid solar sector in the country and we see good potential for the company to expand its product portfolio by offering these advanced clean cooking products in collaboration with Good Farmland Kenya in rural areas in Tanzania,” comments Kari Hämekoski, Senior Programme Manager at Nefco.

The Modern Cooking Facility for Africa (MCFA) supports access to and scale-up of higher-tier clean cooking solutions. Engie Mobisol UK was selected via a competitive application process under the Tanzania country programme as part of the first funding round (MCFA1). The selection process included a two-stage third-party evaluation of applications by independent experts and a detailed due diligence process carried out by Danish Energy Management A/S in consortium with LFS Advisory.

For further information, please contact:

Kari Hämekoski, Senior Programme Manager at Nefco
kari.hamekoski@nefco.int, +358 10 618 0660

Emma Yrjölä, Programme Officer at Nefco
emma.yrjola@nefco.int, +358 106180826

Joao Ferreira, Regional Country Director for Southern Africa at ENGIE Energy Access
Joao.m.ferreira@engie.com, + 258 85 392 4946

About ENGIE Energy Access

ENGIE Energy Access is the leading Pay-As-You-Go (PAYGo) and mini-grids solutions provider in Africa. The company develops innovative, off-grid solar solutions for homes, public services and businesses, providing customers and distribution partners with access to clean, affordable energy. The PAYGo solar home systems are financed through affordable instalments and the mini-grids promote economic development by enabling productive use of electricity and facilitating business opportunities for entrepreneurs in rural communities. ENGIE Energy Access aims to remain Africa’s leading clean energy company and currently has over 1,800 employees and operations in nine countries across Africa: Benin, Cote d’Ivoire, Kenya, Mozambique, Nigeria, Rwanda, Tanzania, Uganda and Zambia. The company has already reached 3 million customers and impacted more than 15 million lives so far. Read more on: www.engie-energyaccess.com

About Nefco

Nefco – the Nordic Green Bank – is an international financial institution based in Helsinki, Finland, owned by the five Nordic countries, focusing on environmental and climate investments to work with concrete actions to accelerate the green transition. Nefco also manages external funds in the climate and energy space. It is accredited by the European Union and the Green Climate Fund and is the Facility Manager for the Beyond the Grid Fund for Africa, a EUR 126 million multi-donor results-based financing facility funded by Denmark, Germany, Norway and Sweden. Read more on www.nefco.int

Photo: ENGIE Energy Access team installing biodigesters in rural Tanzania – Sistema.bio