NDF - Financing for climate change and development projects

NCF 7: Shifting the Market to Clean and Efficient Stoves and Fuels

Photo: Differ AS
Photo: Differ AS
Photo: Differ AS
Photo: Differ AS
The project aims to establish local production of renewable biomass pellets and clean biomass stoves and their wholesale and retail distribution in Cambodia.

Shifting the Market to Clean and Efficient Stoves and Fuels
Ref: NDF C96

Nordic Partner: Differ AS
Other Nordic Partner: Prime Cookstoves AS
Local Partner: C-Quest Capital (Cambodia) Co., Ltd
Other Partner: C-Quest Capital Malaysia Global Stoves Limited
Total Project Cost: EUR 1,134,667
NCF Financing: EUR 499,450
Agreement Signed: 10 July 2018
Project type: Mitigation
Duration:  30 months

Differ AS (Norway), Prime AS (Norway), C-Quest Capital Malaysia Global Stoves Limited (Malaysia) and its fully owned Cambodian subsidiary, C-Quest Capital Cambodia Co., Ltd. (Cambodia) are joining forces to shift the market to clean and efficient stoves and fuels in Cambodia. This shift will mitigate climate change by reducing greenhouse gas emissions from the displacement of non-renewable biomass. The NCF grant helps put in place a business partnership, leveraging private sector risk capital, which will cover the entire supply chain of bringing cleaner biomass stoves and sustainable fuels to market in Cambodia. All four partners are currently active in the nascent clean stove and sustainable fuel sector in Cambodia. In this market, growth is limited by lack of local production/assembly of cleaner stoves, lack of locally produced sustainable fuel that works with the stoves and consequently also lack of scalable facilities to facilitate long-term demand. This grant will help fund local production of pellet fuel, local assembly of stoves manufactured by Prime, and the expansion of CQC Cambodia’s FASTFire stove and fuel distribution business to enable scaled distribution of the locally produced stoves and pellets.

Expected key results
  • The project aims to produce and sell 6,925 clean and efficient biomass stoves, as well as 1,606 tonnes of pellet fuel, reaching 34,625 beneficiaries
  • During the grant period, we expect the business concept to create 15 full-time jobs, related to pellet fuel production, stove assembly and stove/fuel sales. In addition to the full-time jobs, the stove/fuel distribution business activity will create 50 part-time sales agent jobs, which will most likely be filled mostly by women. All the people filling these full-time and part-time jobs will improve their skills through technical and business training the Partners provide.
  • The business concept not only generates revenues for the Partners but also provides additional income to the SMEs producing the pellets.
  • Cleaner stoves and fuels will reduce smoke emissions from cooking, decreasing the burden of disease associated with household air pollution and improving the well-being of household members, especially for women and children.
  • The project will bring access to affordable, reliable, sustainable and modern energy via cleaner cook stoves and renewable biomass fuels essential to addressing energy poverty and ensuring sustainable energy security for Cambodians.
  •  The reduction of non-renewable biomass, such as charcoal, will reduce CO2 emissions and local natural resource degradation