Mexico City-based Sistema.bio launched in 2010 to give smallholder farmers across Mexico a way to recycle animal waste into biofuel for cooking, heating, electrification and nutrient-rich fertilizer. Sistema’s modular, prefabricated biogas digesters are capable of processing between 1,000 to 10,000 gallons of waste.
The company has deployed 100,000 units on small farms in 35 countries in Latin America, Africa and India, and says it has cut more than one million tons of carbon emissions per year.
ElectriFi, the EU-funded energy impact initiative for emerging economies, led the $15 million bridge round, which will provide working capital for the company ahead of an expected Series C round next year.
Catalytic capital
Biofuels are a promising growth market in agriculture-dependent regions. Investors in the bridge financing included KawiSafi Ventures, Chroma Impact Investment, AXA Investment Managers Alternatives, Blink CV and EcoEnterprises Fund. Triodos, FMO and EcoEnterprises extended their current lending facilities; BIX Capital and Shell Foundation provided junior catalytic capital that was co-funded with UK government aid.
Chroma’s Manoël Ancion said that in supporting the startup, her firm was “investing in a future where agriculture plays a key role in the global fight against climate change and poverty.”
Decarbonizing agriculture
Livestock operations small and large account for up to 17% of all greenhouse gas emissions, according to one calculation. Sistema.bio helps farmers document the carbon mitigation and sequestration benefits from regenerative farming with sensors and data tracking. This year it partnered with French energy company ENGIE to deploy its biogas digesters in Zambia. It also launched a program in India that seeded 400,000 tons of carbon credits.
The startup aims to reach more than one million farmers globally by 2025.