Spark+ Provides US $3.5 Million in Carbon Finance to TASC for the Distribution of 90,000 Cookstoves in Zambia
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LUXEMBOURG, June 12, 2023 — The Spark+ Africa Fund (“Spark+” or the “Fund”) has provided US $3.5 million in long-term carbon project financing to a Mauritius-based subsidiary of TASC (the “Company”). It is the Fund’s sixth transaction since it launched in March 2022.
The project finance debt will enable TASC to distribute 90,000 wood cookstoves to bottom of the pyramid households in rural Zambia who are otherwise unable to afford high-quality improved cookstoves. The stove distribution will generate several million tons of Emissions Reductions (ERs) via the inclusion of a new Voluntary Partnership Agreement (VPA) under TASC’s existing Gold Standard Programme of Activities (PoA). ERs generated by the project have been pre-sold at a fixed price via an Emission Reduction Purchase Agreement (ERPA) with a multinational company active in the voluntary carbon market.
Stoves will be supplied by BURN Manufacturing (“BURN”), a Kenyan manufacturing company that specializes in the design and manufacture of biomass, electric, and LPG cookstoves that save consumers time and money, improve health, reduce harmful pollution, and limit the use of wood and charcoal. In 2022, Spark+ invested in BURN via a long-term quasi-equity instrument.
Xavier Pierluca and Peter George, Co-Investment Directors, Spark+: “We are pleased to partner with TASC to benefit 90,000 households otherwise unable to afford high-quality efficient cookstoves. We are also glad to support the extension of the existing relationship between TASC and our portfolio company BURN, and are confident the targeted households will enjoy the many benefits of these life-improving appliances.”
Alick McIntosh, Chief Executive Officer, TASC: “TASC prides itself on implementing high-quality carbon projects with a focus on integrity and transparency. We are very excited about our collaboration with Spark+ Africa and the significant impact this project will have on the lives of many Zambians.”
Kanwal Rathi, EQ Investment Officer and member, Spark+ Investment Team: “We are very pleased to engage with TASC on this exciting carbon project in Zambia. It features unique co-benefits targeting the low income segment in remote areas, which are extremely relevant to the mandate of Spark+.”
Spark+ was advised by international law firm Morgan Lewis Bockius led by Boston-based partner Carl Valenstein, with support from London-based partner Ayesha Waheed, Philadelphia-based partner Kenneth Kulak, and Londonbased associate Opeyemi Atawo. Also supporting the transaction were Ibrahim Diallo and Alexander Johnson from the University of Michigan Law School’s International Transactions Clinic (“ITC”), with oversight by Clinic director David Guenther. TASC was advised by RWK Goodman led by London-based partner Paul Webb.
About clean cooking solutions: 900 million people in sub-Saharan Africa lack clean and modern energy for cooking. Without the electric stoves and piped natural gas prevalent in developed countries, they are forced to spend an estimated $35 billion annually on unhealthy and polluting open fires, charcoal, and kerosene. According to a 2020 World Bank report, this generates annual social, environmental, and economic costs of more than $330 billion in Africa, while the investment required by the private sector to deliver access to modern alternatives would be only $2.6 billion. Solutions that rely on LPG, ethanol, electricity, biogas, and processed biomass fuels, as well as more efficient biomass stoves, are being commercialized with technology-integrated business models and are enabling underserved consumers to adopt modern energy.
About Spark+ Africa Fund: Spark+ is the first impact investment fund launched by Spark+ General Partner (“GP”), a joint venture between its Switzerland-based investment advisor EQ, and Netherlands-based foundation SMC. Switzerland-based Woodman Asset Management acts as the Fund’s Alternative Investment Fund Manager (AIFM). The Fund was developed with support from the UN Foundation’s Clean Cooking Alliance and its investors include leading development finance institutions, pension funds, family offices, and foundations. www.sparkafricafund.com
About Enabling Qapital: EQ is an investment advisory company with strong ties in the impact investment sector and deep expertise in finance, with its founding partners unique skillsets and 100+ year proven track record. EQ is the exclusive advisor to the Enabling Microfinance Fund and has a global footprint of investment professionals across Europe, Africa, Asia, and Latin America who originate, execute, and monitor investments. EQ is the exclusive investment advisor to Spark+ and a shareholder in the GP. www.enabling.ch
About Stichting Modern Cooking: SMC is a Netherlands-based foundation governed by a management board which consists of clean cooking sector experts and impact investment professionals. SMC is the Fund’s TA partner and a shareholder in the GP. www.moderncooking.org
About TASC: TASC is a leading carbon project developer with extensive experience in cookstoves and other technologies. It has a mission to finance and develop high-impact climate mitigation projects by originating and managing quality CO2 emissions reduction projects, harnessing international sources of project-based carbon finance, and generating attractive returns on investment in the carbon market. www.tasc.je/
For more information, please contact:
Peter George: peter.george@enabling.ch
Xavier Pierluca: xavier.pierluca@enabling.ch
