This investment will be geared towards supporting eight small hydro projects across four mini-grids in Kenya. This investment might be the beginning of reliable, affordable electricity for over 10,000 individuals and businesses.
Hydrobox gears up for the mission to light up underserved regions in Kenya
26th November, 2024
Hydrobox, announced that it has raised $9 million in debt funding. FMO, the Dutch Entrepreneurial Development Bank, and EDFI Management Company through ElectriFI, an EU-backed impact investment facility made this investment in the Kenya-based energy startup.
Hydrobox is concerned with building and operating mini-grids in underserved regions. Hydrobox’s innovative approach combines run-of-river hydropower with solar photovoltaic (PV) systems to create resilient, off-grid mini-grids. The energy startup harnesses small local rivers to provide a sustainable, locally-sourced power solution that reduces reliance on fossil fuels. This dual energy strategy ensures continuous power supply despite seasonal fluctuations, supporting communities year-round.
This investment will be geared towards supporting eight small hydro projects across four mini-grids in Kenya. This investment might be the beginning of reliable, affordable electricity for over 10,000 individuals and businesses. These mini-grids serve a combination of anchor clients like factories and farms, small businesses like schools, hospitals, shops, and restaurants, and households, all through an independent grid that offers accessible, reliable power.
Hydrobox’s containerized hydropower plants are designed for efficiency and adaptability. The modular systems used in those plants save costs of construction and accelerates deployment timelines. It also ensures that the technology can be installed in remote, off-grid. Furthermore, the integration of Internet of Things (IoT) technology ensures real-time monitoring and management, enhancing operational efficiency and minimizing downtime.
“Our mini-grids integrate hydro and solar power, providing a reliable and sustainable energy solution for rural communities”. Thomas Poelmans, CEO and cofounder of Hydrobox said.
“Our partnership with reference investors FMO and ElectriFI serves as a quality label and recognition for the hard work our team has put in over the last few years. With strong partners on board and a substantial pipeline of upcoming projects in Kenya and the DRC, we are well-positioned to make a meaningful impact on energy access across Africa, aiming to reach 1,000,000 end-users by 2030. We thank everyone who has believed in and supported our journey,” Thomas added.
Michael Jongeneel, CEO of FMO, emphasized the importance of the private sector in promoting energy access.
“We believe a strong private sector is key to fostering economic and social development. Hydrobox’s innovative, locally-rooted model represents the kind of solution needed to make a tangible impact in rural communities.”
Rodrigo Madrazo, CEO of EDFI Management Company, added:
“Hydrobox’s combination of hydropower and solar PV exemplifies the adaptability required to build climate-resilient energy systems in underserved areas. We are proud to support this partnership and its transformative potential.”
Belgian entrepreneur, Thomas Poelmans and Kenyan entrepreneur, John Magiro partnered together to found Hydrobox. Presently, Hydrobox operates five power stations across three mini-grids in Kenya, with an additional 10 megawatts (MW) of projects in development across Kenya and the Democratic Republic of Congo (DRC).
Beyond delivering clean energy, Hydrobox’s projects aim to stimulate local economies. Hydrobox’s mission of providing electricity to businesses and households supports job creation, improved healthcare, and educational services. Moreover, the company prioritizes environmental sustainability by utilizing small, run-of-river hydropower systems that preserve local ecosystems.
