The Modern Cooking Facility for Africa (MCFA) has announced that it has signed agreements with ACE Hybrid Energy Kenya Ltd and Better Cooking Company Ltd to provide up to EUR 1.3 million and EUR 1.5 million respectively in results-based financing. This is expected to mobilize additional co-financing, at least doubling the total capital invested in clean cooking solutions by both companies by the end of project implementation.
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 Company, which trades under the name “EcoSafi”, were selected via a competitive application process under the Kenya country program as part of the first funding round (MCFA1).
Expand sales and distribution in Kenya
ACE Hybrid Energy Kenya will sell its own-designed ACE One gasifier stoves to customers on Kenya’s Eastern coast.
The MCFA program 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, said 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.
With up to EUR 1.3 million in MCFA financing, the company plans to expand to the counties of Mombasa, Kwale, and Kilifi, and establish an assembly plant in the area.
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.
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 (IoT) 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, said Heli Sinkko, Programme Manager at Nefco.
Biomass pellets and cookstoves
Trading as EcoSafi, Better Cooking Company will provide Kenyans with efficient cooking stoves of its design and a regular supply of biomass pellet fuel made from agricultural waste. The company also has operations in Malawi, Uganda and Zambia.
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, commented Tom Prices, CEO at EcoSafi in Kenya.
With up to EUR 1.5 million in 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.
The new BetterStove, to be supported through MCFA, is a forced-draft pellet stove designed by the company.
The pellets the company provides are manufactured from sustainable raw 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, commented Aliona Fomenco, Investment Manager at Nefco.
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.
