TIDMKIBO
RNS Number : 4991B
Kibo Energy PLC
07 June 2019
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 7 June 2019
Kibo Energy PLC ('Kibo' or the 'Company')
Update on Benga Power Plant Project
Kibo Energy PLC ("Kibo" or the "Company"), the multi-asset,
Africa focused, energy company, is pleased to provide a
comprehensive update on the Benga Power Plant Project in Mozambique
('Benga' or 'the Project'), further to the RNS published on 8 May
2019.
Highlights
-- Completed independent Base Case Financial Model - initial
findings demonstrate the economic robustness and viability of Benga
under Base Case DFS
-- Progressing Environmental Impact Assessment ('EIA') and
aligning it with the Base Case findings of the DFS
-- Internal research on renewable energy and storage options
indicate promising opportunities for optimisation in terms of plant
availability and limiting greenhouse gas emissions
-- Coal Supply Agreement ('CSA') Term Sheet with supplier advancing
-- Power Purchase Agreement ('PPA') Term Sheet with private
off-taker for 35-40% of generation capacity advancing
Louis Coetzee, CEO of Kibo Energy, commented, "The stars are
aligning for our major new energy project in Mozambique, Benga, as
we continue to advance in its development. Whilst in the past, we
have labelled the Project as a thermal coal power project, in
reality, it could encompass much more, as our own research on
renewable energy and storage options indicate. However, our current
priority is to complete term sheets for coal supply and power
purchase agreements; I am pleased to say that discussions are
progressing well for both. I look forward to updating shareholders
on further progress soon."
Full Details
The Company continues to advance its strategy focused on
constructing and operating a 150-300 MW coal-fired power plant with
fuel provided by local coal producers at its 65% owned Benga Power
Plant Project in Mozambique. To this end, it has completed a Base
Case DFS and grid integration solution in collaboration with STEAG
Energy Services. Both study reports were presented and submitted to
the Ministry of Mineral Resources and Energy ('MIREME') and
Electricidade de Moçambique ('EDM') early in May 2019.
A first round Base Case approach was followed in the DFS to
ensure feasibility and project viability under extreme conditions.
Essential information from the Base Case DFS is as follows:
-- Land is secured and suitable for first phase implementation of 150 MW.
-- A reliable water source is close to project site (Zambezi river).
-- Water quality tests revealed that the water is of acceptable
quality for treatment and use in the Power Plant.
-- Technology choice is a single 150 MW circulating fluidized
bed ('CFB') boiler which offers the following benefits:
o Fuel flexibility.
o Low emissions with inherent Air Quality Control Systems
('AQCS') equipment.
o Low unburnt carbon in ash residue, translating into maximum
combustion efficiency.
o No fuel milling and drying required prior to feed of CFB
boilers.
o Lower operating and capital costs compared to pulverized coal
boilers.
-- Base Case plant availability expectations of 85% and steam
cycle efficiency of 34% which is already on par / slightly above
international benchmark standards. (NOTE: It is expected that plant
availability could increase up to 91% and steam cycle efficiency up
to 36% during the optimization phase currently underway);
-- Proposed interconnection to grid is less than 5km away from the BENGA site.
-- Opportunity to access low cost fuel source.
Notably, and most recently, an independent Base Case Financial
Model has been completed and is under internal review. This
indicates economic viability with a healthy project IRR and
competitive electricity tariff, and confirms all assumptions and
expectations of the Base Case DFS. A sensitivity analysis around
key input variables of the Power Plant presented convincing
evidence of a robust project.
The EIA is in progress and currently being aligned with the Base
Case findings of the DFS.
In parallel with the Base Case DFS, Kibo has concluded
substantive inhouse research on a renewable energy component
combined with Coal Fired Power Plants. This research was aimed at
finding solutions to increase electricity production with no
additional greenhouse gas emission impact on the environment;
initial indications are promising.
Additionally, discussions in relation to the CSA with a
Mozambique coal producer are progressing well, with a fully
developed Term Sheet in the final review stage by both parties. A
PPA with a private off-taker is also advancing, with a Term Sheet
for 35-40% of total generated power currently under review by both
parties. Productive technical and PPA engagement with EDM for the
balance of the plant's production capacity, under the existing MOU,
is ongoing and proceeding. The development framework negotiation
with MIREME has gained momentum after the presentation of the Base
Case DFS recently.
Following industry leading practice, the next step in the
Project's development process is optimisation of the Base Case
Power Plant design with STEAG Energy Services and existing original
equipment manufacturer ('OEM') partners. The option of adding solar
and storage capacity to effectively service the internal energy
demand of the Power Plant will be investigated in this optimisation
programme. The aim is to further enhance the stated plant
availability and steam cycle efficiency, whilst further limiting
the emission of harmful gasses into the environment.
The results of this work programme will be incorporated into an
optimised DFS report, which will be utilised to update the current
Base Case Financial Model into an optimised model. This combined
body of knowledge will be the basis of the technical specifications
for the Engineering Construction and Procurement ('EPC')
contract.
**ENDS**
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.kibo.energy or
contact:
Louis Coetzee info@kibo.energy Kibo Energy PLC Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate and Designated
Adviser on JSE
----------------------- ------------------------ --------------------------
Ben Tadd / +44 (0) 20 3700 SVS Securities Limited Joint Broker
Tom Curran 0093
----------------------- ------------------------ --------------------------
Jason Robertson +44 (0) 20 7374 First Equity Limited Joint Broker
2212
----------------------- ------------------------ --------------------------
Andrew Thomson +61 8 9480 2500 RFC Ambrian Limited NOMAD on AIM
----------------------- ------------------------ --------------------------
Isabel de Salis +44 (0) 20 7236 St Brides Partners Investor and Media
/ 1177 Ltd Relations Adviser
Gaby Jenner
----------------------- ------------------------ --------------------------
Notes
Kibo Energy PLC is a multi-asset, Africa focussed, energy
company positioned to address the acute power deficit, which is one
of the primary impediments to economic development in Sub-Saharan
Africa. To this end, it is the Company's objective to become a
leading independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled
power projects: the Mbeya Coal to Power Project ('MCPP') in
Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in
Botswana; and the Benga Independent Power Project ('BIPP') in
Mozambique. By developing these projects in parallel, the Company
intends to leverage considerable economies of scale and timing in
respect of strategic partnerships, procurement, equipment, human
capital, execution capability / capacity and project finance.
Additionally, the Company has a 60% interest in MAST Energy
Developments Limited ('MED'), a private UK registered company
targeting the development and operation of flexible power plants to
service the Reserve Power generation market.
Johannesburg
07 June 2019
Corporate and Designated Adviser
River Group
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDUBANRKNANRRR
(END) Dow Jones Newswires
June 07, 2019 02:30 ET (06:30 GMT)
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Apr 2024 to May 2024
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From May 2023 to May 2024