Sierra Leone to generate 30 MW of power from waste

From the newsletter

Climate Fund Managers (CFM), a blended finance firm specialising in climate solutions, has invested $3.1 million in a waste-to-energy plant in Sierra Leone. It will co-develop the plant with an Independent power producer (IPP), Infinitum Energy. The plant will convert 365,000 tonnes of trash into power for 3.3 million people.

• Africa is in dire need of a waste management solution. The continent is projected to triple its waste generation to 516 million tonnes annually by 2050, a significant 49% increase from 2016.

• Sierra Leone is joining other African nations in turning waste into grid-scale energy. These include South Africa, Ethiopia, Ivory Coast, Democratic Republic of the Congo, Kenya and Zimbabwe. If successful, the country will cut back 94,000 tonnes of CO2 annually.

More details

• CFM and Infinitum Energy Group will expedite project development,Climate Investor Two (CI2)  potentially covering up to 75% of construction equity. A gender action plan and community program will ensure inclusive growth.

• Through a 25-year Power Purchase Agreement with the Electricity Distribution and Supply Authority (EDSA), the facility will provide 236.5 GWh of electricity annually, which will help in combating the country’s current reliance on fossil fuels for electricity generation and the current rate, which stands at only 22%. It will also help the country move closer to its goal of 92% electricity access by 2030.

• Unlike typical African waste-to-energy (WTE) projects, this one uses public capital to de-risk private investment, a model that could be replicated elsewhere. It mitigates risks for private investors. This approach is vital for scaling WTE and renewables continent-wide, as it bridges funding gaps and attracts commercial capital.

• Africa's WTE potential is vast, with studies indicating significant electricity generation capacity from waste. African countries could generate approximately 58 million MWh annually from waste, which is enough to provide power to many Africans. However, high costs and policy uncertainties have hindered widespread adoption. There is much progress in the commercial and industrial sector, specifically in the agricultural sector. In Kenya, sugarcane waste is converted and used as feedstock for boilers in tea factories to provide heat and electricity.

• In 2017, Ethiopia successfully commissioned the Reppie Waste To Energy facility in Addis Ababa, Africa’s first of its kind. It processes 80 % of the city's municipal waste to generate  25 MW. Kenya’s $6 billion Kakamega Waste-to-Energy Plant is under development to convert local waste into renewable power, while Nairobi County is planning a 45 MW facility at the Dandora dumpsite, one of the largest landfills in the world.

• Other projects of this nature include Ghana’s 400-kilowatt Hybrid-PV-Biogas-Pyrolysis-Plant, set to convert 12 tonnes of waste daily into bio-fertilizer and energy. Expected to be completed by 2026, the plant is the first of its kind in West Africa and could serve as a template for future projects. Morocco has launched feasibility studies to assess how waste-to-energy can complement its expanding solar and wind infrastructure, while Tunisia has piloted biogas production from organic waste.

• Despite progress, scaling WTE requires political will, stable policies, and clear regulations to attract investment. Moreover, scaling requires stable frameworks to address risks like feedstock consistency and community buy-in. Sierra Leone’s project, if successful, could serve as a catalyst for future ventures.

Our take

• Sierra Leone's WTE project, while a step forward, highlights Africa's frustratingly slow adoption of proven solutions. The continent isn't lacking in waste, it's lacking in decisive action and consistent policy. The fact that only a handful of nations are seriously leveraging this technology is a symptom of a larger problem: a disconnect between potential and implementation.

• African countries should not solely focus on solar and wind investments. Diversifying their energy mix to include dependable power sources like hydropower and waste-to-energy is crucial. The continent possesses abundant resources to sustainably meet its energy demands through a combination of these technologies.

• The CFM's funding model is the real story here, not just the plant itself. This is the blueprint Africa needs. Public capital de-risking private investment is the only way to break the inertia. We've seen pilot projects and feasibility studies for years; it’s time for scalable, replicable models, and this funding structure is it.