DEG supports transformation process of Brazilian company

• Equity investment in Combio Energia S.A.
• Renewable energy for industrial steam generation
• Push for more sustainable industrial production

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is investing approximately USD 10 million in the Brazilian company Combio Energia S.A. (“Combio”) to support its growth alongside the Brazilian private equity company SPX Capital. The total investment volume amounts to USD 45 million.

Combio specialises in developing sustainable steam generation units for the industrial sector. Steam plays a central role in many industries, providing the heat required for a wide range of production stages in hard-to-abate sectors like food and beverages, mining and chemicals. However, its production requires high temperatures, which are usually generated using fossil energy.

Combio provides an alternative: it allows companies to replace fossil energy sources with biomass and renewable electricity as a more sustainable option for heat generation. In total, Combio’s customers avoid emissions of some 670,000 tonnes of CO2e per year.

Signing the investment agreement on the occasion of the current COP30 Climate Change Conference in Belém, Brazil, Monika Beck, member of the Management Board of DEG, commented: “Companies that invest in the sustainable transformation today are not only securing their own futures but also opening up new business potential. At DEG, we have a very deliberate focus on working with companies that see this transformation as an opportunity.”

“Welcoming a world-class investor such as DEG to Combio underscores the company’s exceptional quality and the relevance of its mission, while marking an important milestone for SPX’s private equity business and a validation of our long-term strategy,” said Edson Peli, Partner at SPX.

“DEG’s investment marks an important step in Combio’s trajectory. Partnering with a global leader in sustainable finance reinforces the strength of our model and provides even greater confidence to the industrial clients we support. With DEG at our side, we are better positioned to scale our projects and advance our purpose of enabling the decarbonization of hard-to-abate sectors” says Paulo Skaf Filho, Combio’s CEO.

DEG has operated in Latin America since its founding. Specialised in supporting the private sector, the KfW subsidiary now has 4 locations across the continent, including a Brazilian office in São Paulo. DEG works with private enterprises all around the world, providing long-term financing, advice and transformation expertise to help them become more sustainable and resilient.