Agreement to Develop World’s First Cocoa Waste-to-Energy Plant in Côte d’Ivoire Signed

By Wallace Mawire

  Climate Fund Managers B.V (“CFM”), a climate-focused blended finance investment manager operating across Africa, Asia and Latin America, and Société Des Energies Nouvelles (“SODEN”), an Ivorian independent power producer (IPP) specialising in biomass, have signed a USD 3 million Development Funding Agreement to co-develop the Divo Biomass Project - the world’s first grid-connected cocoa waste-to-energy power plant (“the Project”).

 Located in Divo, a major cocoa-producing region 200km north of the capital Abidjan, the 76 MW facility is being developed as a Public-Private Partnership. To date, SODEN has invested over EUR 2 million to advance the Project to the current stage of concession negotiations with the Government of Côte d’Ivoire, which began in August 2024 and are expected to conclude soon. The plant will convert 600,000 tonnes of agricultural waste per year - primarily cocoa pod husks, bean shells, and rubber trees that have reached the end of their economic life - into renewable baseload electricity for the national grid, delivering climate mitigation, clean energy access and broad-based socio-economic development.

Once operational, the project will generate 550 GWh/year of clean electricity, enough to serve over 1.4 million people,avoid 300,000 tonnes of CO₂ equivalent emissions annually over 30 years starting in 2029,create over 3,900 jobs - including 3,500 during construction and 440 permanent roles,support approximately 36,000 smallholder cocoa farmers through new income streams and to create EUR 6.8 million in local economic value per year for 30 years.

 The project is being financed through CFM’s EU-supported Climate Investor Two (“CI2”) fund, a blended finance facility focused on water, waste, and oceans infrastructure in emerging markets. Blended finance involves the strategic use of public capital to remove or reduce investment risk, enabling private capital to participate at a risk-return profile that meets its requirements.

 CI2 comprises a Development Fund, which absorbs early-stage risk and a Construction Equity Fund that mobilises private investment into construction. The USD 3 million commitment to the Divo Project comes from the Development Fund, with up to USD 35 million in equity envisioned from the Construction Equity Fund at financial close in 2026.

 The development funding will support a range of preparatory activities, including technical design, permitting, environmental and social studies, concession negotiations with the Government of Côte d’Ivoire, and finalisation of a long-term power purchase agreement with the State, which will act as the offtaker.

Darron Johnson, Regional Head of Africa at CFM, said: “This project demonstrates the vital role of blended finance in bringing complex, first-of-its-kind infrastructure to life in frontier markets like Côte d’Ivoire. By using public capital to fund early-stage development, we can unlock private capital at scale - delivering not only clean energy and rural livelihoods, but also setting a precedent for future investment in the country.”

Yapi Ogou, CEO of SODEN, said: “The Divo plant offers an innovative and scalable solution to Côte d’Ivoire’s energy and climate goals. Each year, cocoa production leaves behind millions of tonnes of waste that goes unused and provides no economic value to farmers. By harnessing this untapped resource to generate clean, reliable energy, we’re turning a national challenge into an opportunity for sustainable growth, rural prosperity, and a more resilient energy system. We’re delighted to welcome CFM as a strategic partner - their technical, financial, and ESG expertise is already adding real value to the development process, and we look forward to bringing the project to life together.”

Francesca Di Mauro,the Ambassador of the European Union to the Republic of Cote d’Ivoire said: “The investment in Divo Biomass Plant, part of the EU’s broader Global Gateway strategy, illustrates our comprehensive approach to tackling critical challenges such as climate change, deforestation, and rural job creation. By integrating a circular economy approach – generating renewable energy from cocoa waste - the Divo project exemplifies innovation in clean energy. The investment is part of a broader Team Europe Initiative on low carbon (over EUR 1.5 billion in investments). We are excited by this transformative project that promises significant environmental, social, and economic benefits for local communities and the region.”

 Côte d’Ivoire produces over 45% of the world’s cocoa. For every tonne harvested, more than 13 tonnes of waste, such as cocoa pod husks and bean shells, are left to rot at the farm gate. This releases harmful methane, contributes to plant disease and represents a missed economic opportunity for farmers.

 The Divo Project will convert this waste into renewable electricity, reducing emissions and creating a new income stream for cocoa farmers. By sourcing feedstock from existing agricultural waste streams and end-of-life rubber trees, the project avoids the need for land conversion or deforestation, while making productive use of underutilised biomass. The project also supports forest conservation by replacing traditional wood-based fuels and generating value from waste. In addition, its agroforestry elements are expected to improve soil health and crop yields, reducing the need to clear additional forest in search of fertile land.

 The Divo Project has been under development since 2016. In 2018, it received a USD 996,000 grant from the U.S. Trade and Development Agency to support feasibility studies. While Côte d’Ivoire has initiated other agricultural biomass projects using palm oil waste, the Project is the first to industrially process cocoa waste at scale and supply the national grid.

 As part of the development phase, CFM will support the implementation of an Environmental and Social Management System aligned with IFC Performance Standards, including a Child Labour Monitoring and Remediation System and a community development programme tailored to local priorities.