Combio Renewables (IFC-49089)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
Mogi Guacu and Campinas (state of Sao Paulo), Balsa Nova (state of Parana)
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 9, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ComBio Energia S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 72.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 72.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 81.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 1, 2024

Disclosed by Bank Mar 8, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the IFC, the proposed IFC investment is a corporate loan of  up to US$72 million with defined use of proceeds  for (i) the purchase and installation of four boilers for two Ingredion facilities (at Mogi Guaçu - https://maps.app.goo.gl/gY8AgpafNa5i5Vts9 and Balsa Nova - https://maps.app.goo.gl/9fvjBYwM8Cw1qQkk9 (Ingredion supplies food ingredients such as sweeteners, starches and biomaterials to food and beverage companies); and (ii) installation of a new boiler at Pirelli’s facility in Campinas - https://maps.app.goo.gl/j8946myLKVusyD8z8 (Pirelli is an Italian multinational tire manufacturer). 

ComBio operates two boilers of 100 tonnes/hour capacity each at Mogi Guaçu, state of São Paulo which were commissioned in September 2023 next to a production facility owned by Ingredion and two boilers of 50 tonnes/hour capacity commissioned in September 2023 at another production facility owned by Ingredion in the city of Bolsa Nova, state of Paraná. ComBio is currently undertaking construction works for the installation of one boiler of 30 tonnes/hour capacity in Pirelli’s industrial facility located in the city of Campinas, state of São Paulo which is expected to start operations in early 2025.  

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

As stated by the IFC, sourcing of biomass for the boilers is considered low risk, as 30% is sourced from existing eucalyptus plantations in regions of low risk for habitat conversion. Some of these plantations overlap with Legally Protected Areas (LPAs) for which specific mitigation measure are required. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, ComBio Energia S.A., established in 2008, is one of the leading providers of renewable thermal energy solutions from biomass in Brazil. ComBio’s business model consists in installing biomass boilers inside its clients’ facilities, managing its operations and maintenance, and sourcing of the feedstock from renewable and sustainable sources. The Company’s biomass powered steam boilers provide a renewable and cost-effective alternative for industrial clients, reducing CO2, sulfur and nitrogen air emissions in comparison to existing diesel-based boilers.

ComBio is a private company domiciled in Brazil. Approximately 67% of the shares of the Company are held by the five founding shareholders. The remaining is held by two private equity funds (Lightrock and SPX Capital), with a combined approximately 31% stake in the Company, and five executives who joined as shareholders through the Company’s Long-Term Incentive Program.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - ComBio Energia SA Client Energy
ComBio Energia SA Client Energy contracts with Ingredion Brasil Ingredientes Industriais Ltda. Buyer Agriculture and Forestry
ComBio Energia SA Client Energy contracts with Pirelli Pneus Ltda. Buyer Industry and Trade
Lightrock Undisclosed Finance invests in ComBio Energia SA Client Energy
Pirelli & C SpA Parent Company Industry and Trade owns Pirelli Pneus Ltda. Buyer Industry and Trade
SPX Capital Undisclosed Finance invests in ComBio Energia SA Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - ComBio Energia SA:

Nicole Barbosa - Legal Manager
Phone: +55 11 3030-0040
Email: juridico@combioenergia.com.br
Address: Rua Fradique Coutinho, 30 – São Paulo – SP - Brasil
Website: www.combioenergia.com.br

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works