Project Update - Early Works Instructed

RNS Number : 1436F

Ncondezi Energy Limited

12 November 2020

 

News Release  

Project Update: Early Works Instructed

12 November 2020: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to announce that contractors have been instructed to progress specified accelerated development works at the Ncondezi 300MW coal-fired power project and coal mine. In conjunction with this the Company has agreed, with its lead Strategic Partner, an early development works budget which is awaiting signatures. 

Subject to the relevant parties signatures being received it is expected that this funding will be provided by the Strategic Partner advancing sums to the subsidiary under a supplemental agreement to the Joint Development Agreement signed in July 2019 and that  the Company will pledge shares in the subsidiary as security for the repayment of such sums advanced. 

In addition, the Company's third party Power Market Outlook study is in advanced draft format currently under internal review, and on track to submit this month following updates on national generation planning from the Mozambican Government in October 2020. The Company's updated Feasibility Study is expected to be submitted at the same time.  

Ncondezi Chief Executive Officer, Hanno Pengilly said: "As part of our financing strategy to advance the Ncondezi Project we have been in discussions around our financing options and this is a key step forward towards those goals and to ensure that we can continue to advance the Project while the tariff negotiations are underway. Contractors have now been instructed on the early works and we expect to be able to update the market further in due course."

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 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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