General Electric

RNS Number : 7121Z

Ncondezi Energy Limited

22 September 2020

 

News Release  

General Electric

22 September 2020: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) notes General Electric Company's ("GE") announcement yesterday regarding their intention to exit the new build coal power market.

The Company is in communication with GE and confirms that it has not  received any formal notification from GE regarding its future role in the Ncondezi 300MW coal-fired power project (the "Project") following the announcement. 

In August, the Company signed a Shareholders Agreement Term Sheet with China Machinary Engineering Corporation ("CMEC"), which confirmed CMEC's  intention to be the lead investor subscribing for a 60% equity stake in the Project and acting as the main Engineering Procurement and Construction ("EPC") and Operations & Maintenance ("O&M") contractor for the construction and operation of the Project. Should the Project need to replace GE in its role as the technology partner the Company is confident that in conjunction with  CMEC it can source a new technology partner and it is not envisaged that such a process would have a material impact on the Project.  Further updates will be made in due course.

All critical Project work streams, including the historical cost audit and tariff negotiations, continue to progress positively.

Enquiries

For further information please visit www.ncondezienergy.com or contact:

Ncondezi Energy	Hanno Pengilly	[phone]
Liberum Capital Limited NOMAD & Joint Broker	Scott Mathieson, Edward Thomas, Kane Collings	[phone]
Novum Securities Limited Joint Broker	Colin Rowbury	[phone]
Pimlico Advisory Ltd Investor Relations	Elizabeth Johnson	[phone]

Note:

The information contained within this announcement in relation to the proposed Placing and Subscriptions is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. If you have any queries on this, then please contact Hanno Pengilly, Chief Executive Officer of the Company (responsible for arranging release of this announcement) on [phone].

About Ncondezi Energy

Ncondezi is an African power development company with an advanced staged, integrated 300MW thermal coal power plant and mine project located in the Tete Province, Northern Mozambique.

The Company is focused on providing reliable, affordable and accessible baseload energy to Mozambique and secure against the effects of water drought and intermittency of new renewables. This project supports Mozambique's energy strategy of universal electricity access by 2030. According to the World Bank, only 30% of the Mozambican population had access to energy in 2017. The Ncondezi Project would provide 300MW of reliable and available power helping to close the infrastructure gap of the region and serving as a catalyst for economic development.

The power plant will be designed to be equipped with state-of-the-art emissions controls technologies that will reduce local air pollutants, minimizing the plant's impact on the environment and ensuring its compliance with the most stringent emission standards

In 2019, the Company entered into the Commercial and Industrial ("C&I") renewable and battery storage sector and in October 2019 announced its first investment in an off grid solar battery project. The Company has also secured the right to fund a US$5.5m C&I project development pipeline in Mozambique through a Relationship Agreement with a C&I developer. The move into the C&I solar and battery storage sector offers a significant opportunity for the Company to complement the existing large-scale baseload power project and access near-term low-risk annuity income streams which have significant growth potential.

 

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