The Norwegian Climate Investment Fund, managed by Norfund, is investing equity capital in SAEL, a solar and agri waste-to-energy company. The investment will contribute to avoid 7,9 million tons of CO2 emissions and increase air quality by reducing stubble burning.
Chandigarh, 18 January 2023: Each year farmers in Northern India burn agri stubble in their fields to remove paddy residue, resulting in severe air pollution with devastating health effects in the region. SAEL Industries Limited has developed a business model where crop residues are used as fuel in waste-to-energy projects. SAEL is an emerging renewable company in India with presence across solar and agri waste-to-energy projects.
The Norwegian Climate Investment Fund, managed by Norfund, is now investing equity in SAEL. The goal is to support the company’s ambition to grow its portfolio to 3GW over the next five years by adding 100MW of new biomass and 400MW of new solar capacity annually in addition to its existing portfolio of 600 MW.
Speaking on the partnership, Ms Ylva Lindberg, Executive Vice President on Strategy and Communications, Norfund, said, “We are thrilled to be able to contribute with the necessary financing for SAEL to reach its ambitions and contribute to reduce climate emissions and local pollution, while contributing to meet India’s energy needs.”
“India succeeding in its green transition is key for the world to succeed in combating global warming, and I am happy that Norway can contribute to this through our new climate investment fund,” said Norwegian Ambassador Hans Jacob Frydenlund.
Fine particle matter (PM 2.5) levels rise with the yearly burning of crop stubble and contributes to some of the world’s worst air quality. High levels of PM 2.5 have been linked to health effects such as asthma and decreased lung function, and the burning of crop stubble also contributes to reduced soil quality, requiring increased use of chemicals which causes other health issues.
“By collecting the crop stubble to be used as fuel in our waste-to-energy plants, we contribute to combat one of our nation’s greatest health issues. At the same time, we are creating local employment and generating extra income to farmers and local entrepreneurs. We are happy to have Norfund partnering with us in these efforts. This partnership with Norfund will fast track implementation of these projects making us one of the leaders in this space” said Jasbir Awla, Chairman and Managing Director of SAEL Limited.
The investment is estimated to contribute to the avoidance of 7,9 million tons of CO2 annually, based on the current Indian energy mix.
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