Africa focused energy company, Kibo Energy, announced that it has signed a binding term sheet with an investment consortium consisting of several high net worth entities and individuals, including two of the company’s largest shareholders, for up to £1 million ($1,240,908).
During the second half of 2020, the company says it will continue to advance its diverse energy project portfolio comprising 1,255MW generation capacity approaching commercialisation.
The projects address the acute power deficits in sub-Saharan Africa and the UK and will incorporate sustainable power options.
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In Mozambique the company says the primary focus is on securing two PPA’s where it hopes to deliver 350MW to 400MW from the following projects:
- Benga Power Plant Project (Benga) in Mozambique, in which it has a 65% interest and is backed by both the government and the local energy company Termoeléctrica de Benga S.A. To this end, a supply agreement is being targeted, which would deliver about 150MW to EDM.
- As per the announcement dated 18 May 2020, the company is also advancing its agreement with Baobab Resources Ltd (Baobab) to supply approximately 200MW energy to its Tete Steel and Vanadium Project (TSV Project). Located approximately 36km away from Benga, the TSV Project is recognised as a key development project in Mozambique. In this regard the company says it is on schedule to finalise a PPA with Baobab at the end of September 2020.
In Tanzania, the fully developed Mbeya Coal to Power Project (MCPP) comprising a 39Mt mineable reserve and a 300-600MW power plant is also making headway, Kibo Energy stated.
While the company continues to explore private and power pool off-take agreements it says it has also actively taken all the necessary proactive steps to ensure that it can participate in any tender process for further coal fired power projects by the national utility.
The company’s CEO, Louis Coetzee, said: “Following the recent EGM, some of the major shareholders in Kibo entered into discussions with the company regarding the projects that Kibo have within its portfolio and the costs associated with the further development of these. These discussions delivered strong support for the Kibo project portfolio and development strategy, culminating in the funding term sheet set out below.
Coetzee continued: “With the knowledge that we have the support of the majority of our shareholders, and the strong belief we have in the exciting potential that our diverse portfolio of energy assets offers, we are pleased to announce this £1 million term sheet. “
He noted that the endorsement from a consortium of highly experienced investors will enable the continued development of the company’s projects, “which are all approaching commercialisation.”
“In particular, our project in Mozambique is making vast strides forward, where we realistically expect the delivery of two PPAs before the end of 2020 for up to 400MW; at the start of this year our expectation was for one PPA for 150MW. There is a lot of work still to be done, but our team is focused on delivering on it and we look forward to providing further updates in due course,” Coetzee concluded.