Energy for Future Generations for Renewable Energy Co.
This summary covers investments by Agropal Investments Company of the West Bank and Gaza and Oosterhof-Holman BioEnergy BV of the Netherlands in Energy for Future Generations for Renewable Energgy Co. in the West Bank and Gaza. The investors have applied for guarantess of €1.35 million ( $1.7million equivalent ) from the MIGA-administered West Bank and Gaza Investment Guarantee Fund for a period of up to 10 years against the risks of trasfer restriction, expropriation, and war and civil disturbance.
This is a pilot project involving the establishment of a biogas plant that will provide renewable energy and bio fertilizers to local farmers. An educational center will provide training and include a research lab for the biogas plant and other activities. The project is located in Al Dahyria, a village 26 kilometers south of Hebron City, south of West Bank.
Environmental Categorization
This project is a category B MIGA's Policy on Environmental and Social Sustainability as it has potentially limited adverse social or environmental impacts. Cow and chicken manure will be sourced from local farmers and pumped directly into two digesters. The outputs will be bio-fertilizer and biogas, which will be converted into electrical and thermal energy. Key potential impacts are related to community and workers' healthy and safety; air, soil, and water pollution; and liquid and solid waste management. The potential impacts are largely reversible and readily addressed through mitigation measures. The company has provided MIGA with an environmental impact assessment.
Development Impact
With demand for electricity increasing by 7 percent annually, the Palestinian Energy Authority is prioritizing the renewable energy sector. The Energy Authority is planning to have 10 percent of electricity generated from renewable energy sources, and this pilot project will help meet that objective while helping to reduce emissions from diesel generators. The project will also support agricultural development by providing local farmers a source of high-quality fertilizer, as imports are prohibited. The project is the first of its kind in the Palestinian Territories and thus there will be substantial knowledge transfer and the creation of nearly 30 jobs.
MIGA’s support for this project is aligned with the agency’s objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association.
The project is underwritten through MIGA’s Small Investment Program.