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.
· 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.”
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.
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
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