Two new portfolio companies in Kenya scaling up access to clean cooking

Agreements have been signed with producers offering clean cookstoves based on pellet and solar/biomass technology to accelerate access to clean cooking solutions across Kenya.

The agreements have been signed with ACE Hybrid Energy Kenya Limited and Better Cooking Company Limited, which trades under the name EcoSafi. The companies started their operations in Kenya in 2019 and 2020 respectively. MCFA will provide up to EUR 1.3 million to ACE Hybrid Energy and up to EUR 1.5 million to EcoSafi in results-based financing. This is expected to mobilise additional co-financing, at least doubling the total capital invested in clean cooking solutions by both companies by the end of project implementation.

ACE Hybrid Energy Kenya will sell its own-designed ACE One gasifier stoves to customers on Kenya’s Eastern coast. With the results-based financing provided by MCFA, the company aims to sell 13,000 stoves, which will provide up to 65,000 people in Kenya with clean cooking solutions by the end of 2028.

“The MCFA programme has singularly changed the funding landscape for the clean cooking sector, and the specific focus on future-proof hardware and data-driven approaches is immensely welcome. ACE is delighted to be able to work together with the MCFA team, and we look forward to rewarding the confidence shown in us with results,” says Ruben Walker, founder and CEO at ACE Hybrid Energy Kenya.

Since 2019, ACE has been selling its ACE One gasifier stoves mainly in West Pokot, a rural district close to the Ugandan border, but with MCFA financing, the company is now planning to expand to the counties of Mombasa, Kwale and Kilifi and to establish an assembly plant in the area. ACE One is a solar/biomass hybrid energy system, a forced-draft gasifier stove that can burn any type of solid biomass cleanly. The stove also includes PAYGo functionality and internet of things usage monitoring. Stove usage is monitored through fan hours and USB usage data collection, which is periodically retrieved through data syncing.

“ACE Hybrid Energy Kenya is an innovative company offering clean cooking stoves that can be used in off-grid settings. We are looking forward to supporting the company to expand its business operations and, together with our three other portfolio companies in Kenya, accelerate access to modern energy cooking solutions across the country,” says Heli Sinkko, Programme Manager at Nefco.

Better Cooking Company Limited, trading as EcoSafi, will provide Kenyans with efficient cooking stoves of their own design and a regular supply of pellet fuel made from agricultural waste. The company also has operations in Malawi, Uganda and Zambia. With the results-based financing provided by MCFA, the company aims to establish 25,000 sustainable clean cooking services in Kenya. This will provide up to 125,000 people in Kenya with access to clean cooking solutions by the end of 2028.

“EcoSafi provides an integrated stove, fuel, and technology solution. We are very excited to expand our business in Kenya and provide more customers with clean and efficient biomass stoves with the support of MCFA. Consumers deserve a clean, affordable, and sustainable alternative to cooking with charcoal,” comments Tom Prices, CEO at EcoSafi in Kenya.

The new BetterStove, to be supported through MCFA, is a forced-draft pellet stove of the company’s own design. The pellets the company provides are manufactured from a sustainable raw material called bagasse, a dry, pulpy, fibrous material that remains after crushing sugarcane to extract its juice. The resulting fuel is around half the cost of charcoal, which is currently still widely used. The stove can be run for up to 2.5 hours on a single batch of fuel. The stove is also PayGo enabled, using Internet of Things technology to track and report usage, to enable accurate tracking of climate impacts.

“We are excited to be announcing our partnership with Better Cooking to support the company in its expansion and accelerate access to clean cooking solutions in the western part of the country,” comments Aliona Fomenco, Investment Manager at Nefco.

The Modern Cooking Facility for Africa (MCFA) supports access to and scale-up of higher-tier clean cooking solutions. Both ACE Hybrid Energy Kenya and Better Cooking were selected via a competitive application process under the Kenya country programme as part of the first funding round (MCFA1). The companies will be funded by Sweden and Norway respectively. 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:

ACE Hybrid Energy Kenya:
Heli Sinkko, Programme Manager, Modern Cooking Facility for Africa, Nefco
Heli.Sinkko@nefco.int, +358 10 6180 659

Ruben Walker, Founder/CEO, African Clean Energy (ACE)
info@africancleanenergy.com

Better Cooking:
Aliona Fomenco, Investment Manager, Nefco
aliona.fomenco@nefco.int, +358 10 6180 647

Tom Price, CEO, EcoSafi
tom@ecosafi.com, +1-801-712-5371

About ACE Hybrid Energy Kenya

ACE Hybrid Energy Kenya is part of a group owned by the Netherlands-based African Clean Energy BV (or ACE), established in 2014. In addition to Kenya, ACE operates in Lesotho, Uganda and Cambodia. The ACE One energy system is an integral energy solution for off- grid households in the developing world. The device uses a combination of thermal and electric generation to provide a clean, smokeless cooking experience for users. The solar electricity it generates can also be used to charge phones and power lighting, saving customers money on associated energy expenses. Each unit can communicate its usage data through integration with a mobile device. Read more at www.africancleanenergy.com

About Better Cooking Company

Better Cooking Company Limited Kenya (trading as EcoSafi) is part of the Better Cooking Company, an American parent company, which also has a subsidiary in Uganda. EcoSafi is the exclusive licensee of the BetterStove. BetterStoves are 98% cleaner than charcoal and their fuel is half the price of charcoal and uses zero trees. EcoSafi is the first company to issue carbon offsets in Africa, under the strict new Gold Standard Metered and Measured Methodology, and it is the only ‘A’-rated cookstove project according to ratings agency BeZero. Read more at www.ecosafi.com

About MCFA

The Modern Cooking Facility for Africa is a multi-donor facility established and managed by Nefco – the Nordic Green Bank – with the aim to support the development of new markets for the clean cooking sector and accelerate access to high technology, modern and affordable cooking equipment for consumers in Sub-Saharan Africa. It combines results-based financing with catalytic grant financing for companies active in the clean cooking market to grow and scale up their businesses in programme countries.

The overall aim of the MCFA programme is to provide access to clean cooking solutions for approximately 4 million Africans. The current EUR 61.5 million MCFA programme was announced in November 2021 and is funded by the European Union, Norway and Sweden. Read more on www.moderncooking.africa

About Nefco

Nefco – the Nordic Green Bank – is an international financial institution based in Helsinki, Finland, owned by the five Nordic countries. The bank focuses on environmental and climate investments and works 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, Sweden and USAID. Read more on www.nefco.int

Photo: Woman in a rural village using ACE stove – African Clean Energy (ACE)