BAKAS Renewable Energy Pvt. Ltd. receives financing of Rs.260 Million!

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NMB Bank and Business Oxygen Pvt. Ltd are financing Bakas Renewable Energy Pvt. Ltd.

Bakas Renewable Energy Pvt. Ltd. is a company promoted by forestry and environmental professionals. The company is working towards the utilization of dried leaves, mills throw away sawdust, and farms burn away agriculture residue to turn them into fuel pellets. Biomass pellets can be a clean and cheap energy source, and an alternative to firewood, petroleum products, LPG and coal — all of which are unsustainable and harmful to health. Bakas Renewable Energy is planning to produce nearly 20,000 metric tonnes of biomass pellets every year for the Nepali market from its plant in Province 2.

To take forward this initiative, Bakas has collaborated with NMB Bank and Business Oxygen Pvt. Ltd., Nepal’s first international Private Equity Fund with a climate focus promoted by International Finance Corporation (IFC) of the World Bank Group.

The project has a total investment of Rs. 260 million, with an equity investment of Rs50 million from Business Oxygen Pvt. Ltd., debt financing of Rs160 million from NMB Bank and remaining Rs.50 million investment will come from promoting shareholders.

“This is one of our exciting projects that assists adaptive resilience and will help the economy with clean energy in numerous ways including being a substitute for coal”, stated the CEO of BO2, Siddhant Raj Pandey, at a virtual signing ceremony.

Similarly, Santosh Mani Nepal, the Chairman of Bakas added, “This project is highly relevant to Nepal. It helps emission reduction caused by forest fires, reduces industrial use of coal and fossil fuels as well as provides employment to the poor and vulnerable people living in neighborhoods of the forest area”. Bakas is the first company to produce biomass pellets on an industrial scale in Nepal, and is also a proven technology globally for domestic heating, electricity generation and outdoor heating.

Sunil KC, CEO of NMB Bank shared his thoughts on NMB’s association with the project “We are delighted to be associated with the project of BO2. As a part of the steering committee of Partnership for Carbon Accounting Financial from Asia and a member of Global Alliance for Banking on Values, our business model focuses on sustainable and value based banking projects encompassing renewable energy projects, M/SMEs, agribusinesses and projects focused on environmental preservation. The Bank is certain that projects such as these will translate in providing long term sustainable livelihood at the grassroots and we look forward to be a part of many such projects in the future.”

What are your thoughts on this initiative? Will this guide Nepal to the path of sustainability and clean & green economy? Do share your thoughts!!