Sistema.bio's FarmCarbon facility reaches $53 million first close

Sistema.bio announced on 17 March that FarmCarbon, its carbon finance facility, has reached a $53 million first close. The close was led by BNP Paribas Asset Management Alts (BNPP AM Alts), British International Investment (ex CDC) and Shell Foundation. FarmCarbon is a facility rather than a funding round.

How FarmCarbon works

Sistema.bio supplies biodigesters and biogas technology to smallholder and family farmers, along with training and financing. FarmCarbon prefinances biogas projects and recovers the value of the future emissions reductions, which buyers purchase under multi-year agreements. It focuses on methane from livestock waste. Alexander Eaton is CEO and co-founder.

Scale

The facility aims to mobilise more than $1 billion over the next decade. It is set to finance more than 90,000 Sistema.bio digesters, with projected emissions reductions above 9 million tonnes of CO2 equivalent. Its first project holds an ex-ante AAe rating from BeZero Carbon and the Core Carbon Principles label. Sistema.bio operates in more than 35 countries across Africa, Asia and Latin America. Jonathan Berman, CEO of the Shell Foundation, said: "Farmers need to increase their incomes."

Use of funds

The money will prefinance biogas project development, so farmers receive the value of future carbon credits upfront. It will also cover digital measurement, reporting and verification, pre-validation, and legal and financial structuring.

At a glance

• Company: Sistema.bio (FarmCarbon)
• Raised: $53 million
• Round: First close of a carbon finance facility
• Investors: BNP Paribas Asset Management Alts, British International Investment, Shell Foundation
• Experience: 15 years in operation
• Markets: More than 35 countries across Africa, Asia and Latin America
• Key figure: More than 90,000 digesters to be financed