Kenyan Renewable Energy Developer Secures $40M Danish Investment for Continental Expansion
CrossBoundary Energy, a Nairobi-headquartered renewable energy developer, has successfully closed a $40 million equity-style financing round led by Impact Fund Denmark, positioning the company to significantly expand its clean energy infrastructure across African markets.
The funding injection will enable CBE to accelerate deployment of integrated solar and battery storage systems specifically designed for businesses operating in regions characterized by unreliable or inadequate electricity infrastructure. The company’s distinctive zero-capital expenditure approach allows corporate clients to access renewable energy through extended power purchase agreements, eliminating prohibitive upfront investment requirements.
This financing structure addresses a critical barrier to renewable energy adoption across Africa, where businesses frequently face substantial capital constraints despite requiring reliable power solutions for operations.
Thomas Hougaard, Managing Director at Impact Fund Denmark, emphasized the investment’s alignment with broader sustainable development objectives, stating the partnership contributes to “sustainable development, reducing carbon emissions, and improving quality of life across Africa.”
The Danish fund’s participation reflects growing international development finance interest in African renewable energy solutions, particularly models that combine commercial viability with developmental impact.
CBE’s current flagship project exemplifies the company’s capacity to execute large-scale renewable energy solutions in challenging environments. The company is constructing what it describes as Africa’s first solar and battery baseload facility, supported by the continent’s largest commercial and industrial power purchase agreement with Kamoa Copper SA in the Democratic Republic of the Congo.
This groundbreaking project will provide stable electricity supply to operations ranked as the world’s fifth-largest copper mine, potentially enhancing both production efficiency and broader regional economic development. The mining sector application demonstrates renewable energy’s viability for energy-intensive industrial operations traditionally dependent on fossil fuel generation.
CrossBoundary Energy has assembled a substantial renewable energy portfolio valued at over $285 million in solar assets, reflecting significant market presence across the continent. The company currently operates approximately 24 projects spanning mining, commercial, manufacturing, telecommunications, real estate, and petrochemical sectors across multiple African countries including Zimbabwe, Kenya, Sierra Leone, Nigeria, Egypt, and Ghana.
This geographic and sectoral diversification positions CBE as a continental leader in commercial and industrial renewable energy solutions, addressing the varied energy needs of different industries and economic contexts.
The investment reflects Impact Fund Denmark’s enhanced commitment to sustainable development, particularly in African markets. Previously known as Investment Fund for Developing Countries (IFU), the organization recently rebranded as Impact Fund Denmark to reflect its strengthened commitment to driving sustainable global development through high-impact solutions.
In 2024, the fund invested DKK 2.4 billion, representing an 80% increase from previous levels, with investments focused on renewable energy, sustainable agriculture and forestry, health, and financial inclusion. These investments are projected to create 20,000 jobs and provide healthcare services to 33 million people.
As an independent development finance institution owned by the Government of Denmark and established in 1967, Impact Fund Denmark has invested in 1,300 companies across 100 countries in Africa, Asia, Latin America and parts of Europe, committing approximately USD 3.64 billion in capital.
CBE operates as part of the larger CrossBoundary Group ecosystem, which includes CrossBoundary Access focused on rural electrification through mini-grids. The Access division recently raised $25 million and plans to deploy $150 million over two years to bring clean energy to one million people in Africa through solar-powered mini-grids.
This multi-faceted approach allows the CrossBoundary organization to address both large-scale commercial energy needs through CBE and rural electrification challenges through its Access division, creating comprehensive coverage of African energy access requirements.
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