Pre-investment Technical Assistance by LDN TAF





Business model

OTAGO’s current business model is based on the production and sales of eco-friendly charcoal-briquette and renewable biomass options, providing employment opportunities to local communities in Cambodia. To scale up the sustainable charcoal business, OTAGO wants to drive transformational change in charcoal-affected landscapes by recycling and adding value to wood residues of sustainably managed plantations and from community managed forests into certified sustainable charcoal.

OTAGO’s sustainable charcoal production, which covers approx. 30% of Phnom Penh’s demand, will reduce pressure on the Cambodian natural forests caused by the production of unsustainable charcoal and will avoid further land degradation in charcoal-affected landscapes.

Investment need

Otago currently receives a mix of grants and patient capital, and initially looks to scale up its current operations with an investment of US $3 million to implement its expansion plan (infrastructure, production equipment, etc.).

Technical assistance

  • Develop a business model able to offer a plug-and-play solution to recycle plantations’ wood residues into sustainable charcoal in Cambodia;
  • Explore feasibility of an (agro-)forestry plantation business model for more sustainable charcoal production in Cambodia;
  • Assessment of the scalability and replicability of the business model, both in Cambodia and internationally;
  • Internal policy development for the prevention of sexual harassment and initiate gender sensitization trainings. Furthermore, a new staff position will be defined to encourage women to speak up concerning gender-sensitive issues.

Technical assistance support from the LDN TAF does not constitute a commitment from the LDN Fund, or Mirova, to finance directly or indirectly the project described above. Any such commitment shall be subject to inter alia, a detailed technical, financial and legal due diligence of the company and the project, as well as all required LDN Fund investment committee approvals and satisfactory documentation.