Xylo Group is a biomass-to-energy project developer with a pipeline of opportunities to generate renewable energy to the corporate and industrial market in Uganda, Tanzania and Zambia. The Jinja Combined Heat and Power (CHP) Project is the first of these projects and will use woody biomass to produce green thermal (steam) and electric energy for the Nile Breweries (AB InBev) brewery in Jinja.

Our Development Partner

Xylo Group

We Invest

USD 2m Development Funding from DF1 & DF2 & Expected Construction Equity Funding of USD 6.25 from CEF1 and USD 18.75 from CEF2

Estimated Project Impact

Annual avoided GHG emissions (tCO2eq/year)  Estimated at 48,975 tCO2e/year

Total installed capacity (MW) 11MW thermal, of which 3MW will be electrical supply, and the remainder used for steam generation.

Total renewable energy generated (GWh/year) 15 GWh/year

CI2 E&S Rationale

This opportunity to invest in the construction and operation of the Jinja CHP Project has been classified as Category B+ in accordance with CI1 and CI2’s E&S risk categorisation; this is equivalent to the International Finance Corporation (IFC) E&S risk category B. Adverse E&S risks and/or impacts are limited, generally site-specific and largely reversible which can be effectively managed in line with available international standards. IFC Performance Standards (PS) 1-4 are applicable, and the key E&S impacts and risks relate to occupational health and safety, third-party labour and working conditions (including in the supply chain), and sustainable water use and waste management. The project does not require any resettlement nor pose any risks to biodiversity, and there are no indigenous peoples in the project area of influence. IFC PS5-7 are therefore not applicable, and IFC PS8 (cultural heritage) is not triggered beyond the standard requirement for ‘chance find’ procedures.

Funding Objective

The CI1 and CI2 investments will be used for the construction and operation of the Jinja CHP Project. The Project will use sustainable biomass to replace the current fossil fuel-generated electricity and steam at the AB InBev brewery in Jinja, resulting in permanent decarbonization and operational cost savings. The Jinja Project is estimated to produce 15,000MWh of electricity and 70,000 tonnes of steam per annum, replacing corresponding usage of heavy fuel oil (HFO) boilers, diesel fuel generators, and grid-supplied electricity. The gross greenhouse gas (GHG) emission reduction from the Project is estimated to be approximately 48,975 tCO2e per annum. The net emission reduction, subject to final design, are estimated to be 44,000 tCO2e per annum based on forecasted emissions from the plant (leakage, diversion, etc)





Business Model


Environmental & Social Category



Renewable Energy

Project Location

Why Climate Investor Two Wants to Invest in This Project

Our pioneering biomass-to-energy endeavour in Jinja, Uganda, epitomises a transformative approach to addressing the region’s energy deficit. Spearheaded by the Xylo Group, the Jinja Project harnesses renewable biomass resources to generate thermal and electric energy, fostering economic growth and environmental sustainability. Currently only 42% of Ugandans have access to electricity and, of that, only 18.9% is from the national Ugandan grid, with the remaining 23.1% of the population relying on solar home systems, mini-grids, or small power generating devices. A large proportion of industrial users thus supplement any grid-tied connections with their own generating capabilities, usually with non-renewable sources such as diesel-powered generators. HFO is the largest source of carbon emissions within the Jinja brewery, and as such the project achieves decarbonization in a commercially sustainable manner for the brewery and the project developers. This business model, once proven, is available for replication at other thermal energy intensive industries. The Jinja CHP (and the Xylo Group pipeline of projects) represent an attractive opportunity for Climate Fund Managers (CFM), via its managed funds CI1 and CI2, to contribute to positive climate change mitigation benefits as well as the circular economy.