Update on Benga Power Plant Project

RNS Number : 5564T

Kibo Energy PLC

21 March 2019

 

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

("Kibo" or "the Company")

Dated: 21 March 2019

Kibo Energy PLC ('Kibo' or the 'Company')

Update on Benga Power Plant Project

Kibo Energy PLC ("Kibo" or the "Company"), the multi-asset energy company, is pleased to provide an update on the Benga Power Plant Project in Mozambique ('Benga'), further to the RNS published on January 30, 2019.

Highlights

·     Definitive Feasibility Study ('DFS') completed ahead of schedule and final review in progress

·     Coal Purchase Agreements ('CPA') with coal producers in advanced stage and progressing well

·     Meeting with EDM (Mozambique's publicly owned electricity company) - planned for April 2019 to present final DFS and engage in further Power Purchase Agreement ('PPA') negotiations under the terms of existing MOU (See RNS of 12 December 2019)

·     PPA discussions with potential private off-takers in advanced stage and progressing well

·     Assessing integration of renewable technologies at the project

Louis Coetzee, CEO of Kibo, said: "We are encouraged by the rapid progress of the Benga project as well as the quality work performed by the project team and consultants. The fact that we are already discussing commercial power off-take and being able to progressively integrate the outcomes with the technical work of the DFS allows us to align the power station design accurately with off-takers' requirements.  Additionally, the integration of renewable technologies is an exciting add-on to the project.  We are confident that this, combined with Kibo's focus on clean-burning coal fired power generation, will put the Company on the forefront of development in this regard."

Further Details

The Company is advancing the development of its 65% owned Benga Power Plant Project in Mozambique in Joint Venture with Mozambique energy company Termoeléctrica de Benga S.A.

The strategy for the project is to construct and operate a 150-300 MW coal-fired power station with feedstock provided by regional coal producers. To this end, the Company has completed a DFS, which included an initial Grid Integration Study.  This has been reviewed during a clarification meeting with STEAG Energy Services, and final reviews are in process.

Additionally, discussions in relation to CPA's with coal producers are progressing well, with a fully developed term sheet with one producer currently under review.  A meeting is planned for early April 2019 with EDM to present the final DFS and further engage on PPA negotiations, building on the existing MoU, which was recently renewed and expanded.  Finally, PPA discussions with potential private off-takers are in an advanced stage and progressing well.

Kibo is also investigating the practical integration of renewable energy and associated technologies within the future Benga Power Station.  In this regard, the potential use of solar energy combined with energy storage solutions as an integrated solution for power back-up is being investigated.

**ENDS**

 

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

For further information please visit www.kibo.energy or contact:

Louis Coetzee	[e-mail]	Kibo Energy PLC	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate and Designated Adviser on JSE
Ben Tadd / Tom Curran	[phone]	SVS Securities Limited	Joint Broker
Jason Robertson	[phone]	First Equity Limited	Joint Broker
Andrew Thomson	[phone]	RFC Ambrian Limited	NOMAD on AIM
Isabel de Salis / Gaby Jenner	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

Notes to editors

Kibo Energy PLC is a multi-asset, Africa focused, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company's objective to become a leading independent power producer in the region.

Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project ('MCPP') in Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in Botswana; and the Benga Independent Power Project ('BIPP') in Mozambique. By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will benefit from its robust and experienced international blue-chip partnership network across its project portfolio, which includes: SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.

Additionally, the Company has a 60% interest in MAST Energy Developments Limited ('MED'), a private UK registered company targeting the development and operation of flexible power plants to service the Reserve Power generation market.

Johannesburg

21 March 2019

Corporate and Designated Adviser

River Group

 

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