Q&A with CEO and co-founder of Sistema.bio, Alex Eaton

BNP Paribas Asset Management Alts recently announced an investment in Sistema.bio’s newly created vehicle, FarmCarbon, focusing on climate finance to scale methane-reduction in smallholder agriculture. We recently spoke with their CEO and co-founder Alex Eaton who told us more about the company and their future plans.

Q: What does Sistema.bio do and what is your mission?

Sistema.bio works with farms — especially family farms — to provide biodigesters that convert agricultural waste into renewable energy: Biogas and organic fertiliser. This simultaneously addresses four major decarbonisation pathways: providing clean energy, managing agricultural waste (especially methane emissions), displacing chemical fertilisers, and improving soil health and regenerative-agriculture practices. We operate globally and our addressable market includes hundreds of millions of farms and around two billion people. In addition, we also produce carbon credits by destroying methane and other super-pollutants.

Q: Why do farmers choose Sistema.bio? What is the value proposition on the ground?

Farmers choose Sistema.bio because the technology and service work reliably, because the company puts farmers at the centre of its model, and because the economics make sense. We have been in business for more than 15 years, and thousands of farms have been clients for over a decade — a strong proof point for durability and performance. Farmers benefit from access to clean energy, high-quality fertiliser and better waste management, all supported by financing that integrates carbon-credit revenues. For many, the biodigester pays for itself by offsetting monthly energy and fertiliser costs while improving productivity. It’s a clear win for the farmer, for the climate, and for rural development.

Q: Which geographies are you focusing on?

We are doubling down in high-growth markets such as India, Mexico and Kenya, while forming strategic partnerships to expand into new territories. These include collaborations with the Swiss government in Peru, Malawi and Ghana, with Danone in Morocco and Mexico, and with Nestlé in northern India and Mexico, too. We also recently completed our first project in Indonesia, launched a major programme in Nepal, and piloted operations in Bhutan. In Latin America, we have expanded to Argentina and we maintain a large presence in Colombia, Mexico, Ecuador and Central America. Our focus is on disciplined expansion while building depth in core markets, which alone represent an 80–100 million-farm opportunity.

Q: What is your strategy to scale installations, especially in high-growth regions like India, Africa and Latin America — and what are the main bottlenecks you anticipate?

On the supply side, we have built a state-of-the-art factory in India and another in Mexico, with modular designs that allow for local assembly or pop-up manufacturing when needed. Supply-chain capacity is no longer the bottleneck. The real challenge lies in last-mile access — reaching remote, often fragmented farming communities.

To address this, we are deepening partnerships with cooperatives, corporates, governments and NGOs that already have networks of farmers. One example is a programme in Kenya selling digesters through the national police union, whose members are also small-scale farmers. The broader strategy is to combine manufacturing strength with distribution partnerships and financing models underpinned by carbon revenues. With this approach, the next five years are expected to mark the company’s transition from growth to full-scale deployment.

Q: How much does policy variation across countries affect your business?

Because Sistema.bio operates primarily in the voluntary carbon market rather than compliance markets, national policy differences have limited exposure risk. We are pragmatic and flexible, manufacturing in both Mexico and India to diversify supply-chain risks and mitigate potential trade disruptions. Broader policy shifts, such as changing clean-energy or regenerative-agriculture incentives in large economies, can influence demand trends – but the goal is to maintain a resilient model that is not overly dependent on one regulatory environment.

Q: Could you walk us through the carbon-credit business and how it feeds into scaling your installations?

Sistema.bio’s carbon business model is built on integrity, transparency and equity. The processes align with rigorous measurement, reporting and verification frameworks and high-quality registries such as the Gold Standard foundation. Once a biodigester is installed we measure avoided methane emissions, fertiliser displacement and soil improvements over time, generating verified carbon credits that can be sold to corporate buyers.

Revenues from these credits help offset farmers’ costs and create additional financing headroom, enabling faster scaling. The company’s credits have received an “AAe” rating from BeZero Carbon, among the highest in the voluntary carbon market.

Q: Which co-benefits do your projects deliver, and how do you account for them?

Because we work with family farms, our projects generate extensive co-benefits. On the social side, they reduce indoor air pollution and save time previously spent collecting fuel. They also create rural jobs and improve living standards. On the environmental side, they enhance soil health, reduce chemical fertiliser use and capture methane. By replacing wood or fossil fuels they also lower deforestation and air pollution.

Our impact has been validated through studies with the World Bank and International Finance Corporation (IFC), and we have brought to market some of the first “co-benefit credits” certified by Gold Standard — covering health, time and gender outcomes. In a voluntary market increasingly focused on high-integrity credits, our projects offer both measurable carbon impact and demonstrable social value.

Q: What do you look for in investors and strategic partners?

We look for partners with a long-term mindset and sector expertise. It’s important that they understand the 10-year-plus horizon of climate infrastructure. Alignment on mission and integrity is essential — we look for partners who are genuinely committed to decarbonisation, regenerative agriculture and small-farm impact. Credibility also matters: having globally recognised partners such as BNP Paribas AM Alts enhances co-financing potential and builds market confidence.

We believe blended-finance structures, combining private and public capital, are the most effective way to achieve scale. Private investors bring commercial discipline, while development institutions help de-risk early stages and enable layered capital structures.

Q: What have been your key achievements over the past year

Over the past year, we acquired Inclusive Energy. This added a digital Monitoring, Reporting and Verification (MRV) platform with remote sensors and analytics, allowing real-time monitoring of digesters and carbon credit generation. We also expanded our manufacturing footprint in India, strengthened partnerships with corporate and development actors, and secured US $15 million in new financing to accelerate growth.