- Sector : Sustainable Agriculture
- Location : Costa Rica
Overview
The Subnational Climate Fund (SCF) is exploring a potential investment opportunity in an innovative circular bioeconomy initiative based in Provincia de Alajuela, Costa Rica. The project transforms agricultural residues from pineapple cultivation — notably leaves and stubble — into high-purity cellulose pulp and plasma-derived fertilisers through a modular plasma-assisted process. This approach offers a sustainable alternative to conventional wood-based cellulose production, addressing both agricultural waste challenges and the climate and biodiversity impacts associated with deforestation.
The project developer has initiated a pilot at a partner farm, currently advancing the technology to commercial-representative conditions, and has engaged with potential offtakers in the packaging, textile, and regenerative agriculture sectors. SCF’s involvement focuses on validating the market and economic viability of this model to support potential future investment.
The Challenge
Costa Rica’s pineapple sector generates significant fibrous waste which, if unmanaged, contributes to environmental degradation and foregone economic value. Traditional agricultural value chains capture limited downstream value from residues, while global demand for sustainable biobased materials — particularly high-purity cellulose — is growing. Rural economies in Latin America and the Caribbean face persistent barriers to climate-aligned industrial diversification, including constrained access to market data, financing structures and scalable manufacturing models.
SCF’s Involvement – Technical Assistance
The SCF Technical Assistance Facility has commissioned a pre-feasibility study to assess the economic and market a proposed agricultural biomass valorisation pilot. The study’s objectives are to:
- Unit Economics Validation incl. verification on technical assumptions, review the logic of the feedstock cost assumptions and comparison of CAPEX and OPEX assumptions on a high level.
- Market Context and Demand Mapping including the mapping of demand for high-purity cellulose and plasma-derived fertilizers in key target sectors, as well as the estimation of realistic pricing, volumes, and potential market barriers.
- Franchise Model and Governance Analysis incl. review of the proposed franchise structure and cashflow distribution, assessment of viability under varying offtake prices scenarios and operational costs, identification of key governance, financing and operational risks.
- VER Validation through identification of applicable VCM methodologies, establishment of preliminary baseline for avoided emissions, and estimation of VER issuance potential and MRV cost envelope.
- ES Study of Costa Rica’s monoculture pineapple farms, potential for recovered waste products to generate broader indirect impacts through diverse industries.
Outcomes from the pre-feasibility study will guide SCF’s assessment of potential pilot funding and inform design parameters for future investment instruments under the Fund’s blended finance model.
Our Target Impact
By validating this circular bioeconomy model, SCF aims to inform investment decisions that could catalyse:
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SDG 13 Climate Action
The project is projected to prevent approximately 5,000 tons CO2e/year through the prevention of biomass burning/decomposition and displacement of fossil fuel based fertilizers. The project will also indirectly avoid deforestation associated with cellulose production.
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SDG 8 Decent Work and Economic Growth
The project will create create 30 direct rural jobs, and increase revenue for farmers and cooperatives by reducing cost of fertilisers in the deploying region.
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SDG 5 Gender Equality
The project targets 40% female employment, supports women-led fertilizer cooperatives, and builds gender-focused training programs. The project will comply with SCF Gender Policy.
