Kibo Energy CEO Louis Coetzee
Aim- and AltX-listed Kibo Energy announced on Wednesday that its 60%-owned subsidiary MAST Energy Developments (MED) has started negotiating joint development agreements (JDAs) for two flexible power plants.
This should provide early revenue for Kibo, with the sites – 5 MW, 11 kVA and 20 MW, 33 kVA – planned to be operational by the fourth quarter of this year and the first quarter of next year, respectively.
MED and Kibo are evaluating client engineer and engineering, procurement and construction (EPC) services providers for both sites, as well as conditional offers for debt financing from two financial institutions.
MED has also been granted extended exclusive rights until March 31 to finalise an outstanding planning parameter on a third 6 MW, 11 kVA site.
The company is also progressing with due diligence on a nonexclusive 84 MW portfolio of sites.
Meanwhile, Kibo is also making progress with its 65%-owned Benga independent power project, in Mozambique, which includes a 150 MW to 300 MW coal-fired power station.
A definitive feasibility study (DFS) that is expected to confirm Benga’s commercial and operational viability has progressed ahead of schedule, says Kibo CEO Louis Coetzee.
Power purchase agreement discussions with prospective offtakers continue to advance, while negotiations with potential coal suppliers and private power offtakers are also progressing and will receive priority attention this quarter.
The company’s “aggressive” 2019 work plan for Benga includes advancing final grid integration, the DFS, geotechnical work, financial modelling, EPC technical specifications, EPC benchmarking and award, as well as an environmental-impact assessment.
Benga is located in the Tete province, near various thermal coal producers, which could be a source of feedstock.
As an investment opportunity, it is defined by the urgent requirement for power by the mining industry in the region, notably the major mining operations, as well as the general need for energy in Mozambique.