The Netherlands and Namibia, 29 October 2020 – Climate Fund Managers (CFM) and Eos Capital announce a partnership between Climate Investor Two (managed by Climate Fund Managers), Kelp Blue and the Namibia Infrastructure Development and Investment Fund (NIDIF), managed by Eos Capital, for the commercial development of the world’s first large-scale kelp farm.
Investment of approximately USD 60 million (N$990 million) will be required over a five-year period. This will be funded by both international and local Namibian sources through CI2 and NIDIF, pending investment approvals. Kelp Blue will seek the necessary Namibian regulatory approvals and will liaise closely with local authorities.
Kelp Blue will cultivate giant kelp in nutrient-rich waters 3-10 kilometres off the coast of Namibia, near Lüderitz. The seaweed canopy will be sustainably harvested to produce alternative agri-food, bio-stimulant and textile products.
Kelp is a fast-growing seaweed and has the ability to sequester more CO2 than terrestrial forests while boosting marine biodiversity and improving fish stocks and generating additional ecological benefits, including counteracting ocean acidification and de-oxygenation.
Kelp Blue’s business model will add value across the entire kelp value-chain. The introduction of offshore engineering innovations and novel processing technologies will reduce overheads and increase scalable process efficiencies. Economic development will be promoted through the creation of value-added products in Namibia for local consumption and export.
Kelp Blue will also create employment opportunities in coastal communities and contribute to economic growth in outlying areas. Kelp Blue is directly aligned with the goals of the CI2 facility as it offers a viable alternative to existing water and waste management practices and current approaches to ocean system management. It is also aligned to Eos Capital and NIDIF’s shared mission of contributing to the growth of the Namibian economy. The business will contribute to the attainment of the United Nations’ Sustainable Development Goal Number 14: Life below water through the creation of marine ecosystems.
“We are proud to partner with Kelp Blue in its efforts to accelerate marine biodiversity resilience. As one of the early investments under the CI2 financing facility, this partnership speaks to our commitment to supporting the health and productivity of our blue planet. Kelp Blue has the potential to improve aquatic biodiversity, contribute to effective fisheries management and provide alternative revenue streams for coastal economies,” commented Andrew Johnstone, CEO of Climate Fund Managers. “We are committed to working with Kelp Blue to address the effects of climate change on marine and coastal resources, and build up the integrated marine resource management capacity of local decision makers and regulatory authorities,” he added.
Nicole Maske, Managing Partner of Eos Capital, said that, “In addition to the positive impact on our ocean and our local fish stocks, this is an exciting opportunity to add to the infrastructure and growth of Lüderitz, thereby enhancing prospects for the local community, and to secure inward investment into Namibia on an environmentally responsible basis.”
“We look forward to repaying the confidence that Climate Fund Managers and Eos Capital have placed in us by ensuring the success of this project, creating meaningful employment opportunities in Namibia and making a valuable contribution to the integrity and viability of ocean ecosystems”, commented Daniel Hooft, Founder of Kelp Blue.
About Kelp Blue
Kelp Blue is a sustainable oceanic aquaculture enterprise focused on addressing the challenges of climate change and restoring the health of marine ecosystems through commercially viable solutions.
Founded in 2020, Kelp Blue has its headquarters in The Netherlands and operations in Namibia. Kelp Blue’s management team delivers accelerated change by combining decades of experience and expertise from multiple industries.
Advisors on this transaction were J-Maynard and Terra Protein Equity Partners.
Visit kelp.blue for more information.
About Climate Fund Managers
Climate Fund Managers (CFM) is a new-generation fund management firm dedicated to securing a sustainable future through investing in positive climate outcomes across global emerging markets. CFM is a cooperative incorporated under the laws of The Netherlands, established as a joint venture between FMO, the Dutch entrepreneurial development bank, and Sanlam InfraWorks, part of Sanlam Group of South Africa).
CFM’s second financing facility, Climate Investor Two (CI2) has €75 million under management to date and is mandated to invest in water, sanitation and ocean infrastructure projects in emerging economies. CI2 will follow the proven “whole-life” financing approach of Climate Investor One (CI1), which has been acclaimed for its innovative approach to risk mitigation and private sector capital mobilisation. As with CI1, CI2 will deliver a funding solution based on the tactical structuring of public sector capital in a blending architecture, making use of a Development Fund, a Construction Equity Fund and a Refinancing Fund.
About Eos Capital
Eos Capital is an established Namibian private equity fund manager, founded in 2015 and 100% Namibian-owned. Eos Capital’s mission is to contribute to the growth of the Namibian economy, building on its strong local network and ability to add value to investments. Eos and its Funds are registered and regulated under Namibian law.
Eos Capital successfully raised its first fund, the Allegrow Fund, in 2015 with a committed capital of N$460m ($28m USD) and 7 portfolio investments to date. Investment sectors include consumer goods, general industrials and services, ranging from pharmaceutical manufacturing to education.
The Namibia Infrastructure Development and Investment Fund (NIDIF) is the second fund launched by Eos Capital, and had its first close of N$535m ($31.3m USD) in April 2020, with a target fund size of N$1bn ($58.5m USD). This fund will build a diversified portfolio of inflation-resilient, stable and high-quality infrastructure assets to provide long-term income to investors. Investment sectors include energy, water, biomass, education and skills development, healthcare, transport, logistics, and ICT. The GIPF is the anchor investor in NIDIF, with a commitment of N$500m to the fund.
Eos Capital is in the process of fundraising for its third fund, the Euphrates Agri fund, with a target size of N$500m ($30m USD). The fund’s mission is to create a Renaissance in Agriculture in Namibia, driving social outcomes, industrialisation in agriculture and attractive returns to investors.
Visit www.eoscapital.com.na to learn more.