A pioneering renewable energy project is brewing in the cocoa fields of Divo, Côte d’Ivoire. Climate Fund Managers (CFM) and Ivorian IPP SODEN are co-developing the Divo Biomass Project—a 76 MW waste-to-energy power plant that will convert cocoa pod husks and agricultural residues into clean, grid-connected electricity.
Project Snapshot 📊
- Location: Divo, 200 km from Abidjan, a cocoa-producing heartland
- Capacity: 76 MW
- Annual Generation: 550 GWh
- CO₂e Avoided Annually: 300,000 tonnes (2029 onwards)
- Jobs Created: Over 3,900 (3,500 construction + 440 permanent)
- Smallholder Support: ~36,000 cocoa farmers to benefit from new income streams
Blended Finance in Action 💸
With EUR 2 million already invested by SODEN and a $996k USTDA grant behind it, the project secured a $3 million development commitment from the EU-backed Climate Investor Two (CI2) fund.
At financial close in 2026, up to $35 million in equity is expected from CI2’s Construction Equity Fund. The project is a textbook example of blended finance: public funds absorb early-stage risk, unlocking private capital at scale.
Why It Matters 📈
Côte d’Ivoire produces over 45% of the world’s cocoa, yet most of its cocoa waste (13 tonnes per harvested tonne) is discarded, releasing methane and inviting plant disease. The Divo plant will:
- Power over 1.4 million people
- Generate EUR 6.8 million/year in local economic value
- Promote agroforestry and reduce pressure on forests
Modelling Renewable Biomass Projects 📉
From a financial modeller’s lens, the project stands out:
- Feedstock Forecasting: Cocoa pod husk volumes must be matched with seasonal cycles and farmer aggregation schemes.
- PPA Structuring: A long-term agreement with the state will underpin bankability, demanding DCF models with accurate tariff escalation and capacity factors.
- E&S Risks: Labour standards (especially child labour monitoring) and land use need to be priced into sensitivity analyses.
Blended finance instruments must be reflected accurately in the WACC assumptions and capex phasing. For instance, if 35% of capex is equity and the rest is concessional debt, IRR and debt service ratios must reflect the weighted risk profile.
Cocoa, Climate, and Clean Energy 🌼⚡
More than a power plant, the Divo project is a circular economy solution for Côte d’Ivoire’s rural energy and climate resilience goals. It champions:
- Diversified farmer incomes
- Reduced emissions and deforestation
- Scalable infrastructure in a high-impact sector
This project, under development since 2016, sets a new benchmark for biomass innovation in West Africa. With the right financial model and risk-sharing frameworks, it could pave the way for similar agricultural waste-to-energy ventures across the continent.
Finteam 