The Inter-American Development Bank (IDB) has approved a loan of $5.5 million to support the largest scrap materials recycling company in Honduras to purchase and install photovoltaic solar panels on the roof of its recycling plant in San Pedro Sula.
The investment will enable Inversiones Materiales S.R.L. (Invema) to install over 3,600 solar panels, equivalent to about 1MW of zero-emission generating capacity for self-supply. In addition, the project includes investments in recycling equipment that will allow Invema to further process the Pet Plastic bottles it already collects from the streets, landfills, and waterways of Honduran communities to produce Pet bottles with up to a 100 percent recycled content.
“More and more, companies in the region are looking for new ways to invest in sustainability and clean energy,” said Kelle Bevine, Chief of Strategy Management in the IDB’s Structured and Corporate Financing Department. “Through this project, the IDB continues to support early movers in the solar rooftop market in Central America and beyond through highly innovative financing structures.”
The project, which is being co-financed by the Canadian Climate Fund for the Private Sector in the Americas, will reduce greenhouse gas emissions by about 20,000 tons of CO2 over 25 years by replacing grid electricity with electricity generated from on-site solar power. In addition, the energy efficiency improvements will reduce demand on the electrical grid and fuel consumption while lowering emissions.
“Through these investments, Invema is able to cut down its electricity costs while adding value to its recycling operation and moving up in the value chain; investing in solar and in new recycling technologies will allow us to diversify production lines while reducing our carbon footprint,” said George Gatlin, CEO of Invema.
The IDB loan to Invema is part of the Climate and Clean Energy Facility that offers $100 million in financing for companies in the region making investments in energy efficiency and self-supply renewable energy projects. The Facility was established by the IDB with support from a combination of donor resources: Nordic Development Fund, Clean Technology Fund and Scaling Up Renewable Energy Program (SREP). Through this Facility, the IDB has conducted over 60 investment-grade energy appraisals for companies like Invema to identify investment opportunities in clean energy.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
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