Ncondezi Energy Limited Project Update
RNS Number : 4117T
Ncondezi Energy Limited
25 March 2021
25 March 2021: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to provide an update on the
integrated Ncondezi 300MW coal fired power project and coal mine in
Tete, Mozambique (the "Project").
-- Positive tariff negotiations continue
-- The next step is receipt of formal feedback from
Electricidade de Moçambique ("EDM") and the Government of
Mozambique following submission of agreed studies in December
-- China Machinary Engineering Corp ("CMEC") has reiterated its support for Project
Ncondezi Chief Executive Officer, Hanno Pengilly said: "We are
at an advanced stage in our negotiations with both EDM and the
Government. All the requested information has been delivered and
further questions have been answered. We are now awaiting formal
feedback from both EDM and the Government which will drive the
Project timetable for the next critical milestones.
The Project remains the most advanced baseload power project in
the area with the ability to supply the required power to the grid,
inline with current Government generation policy targets. The
Project also benefits from strong partner support as demonstrated
by CMEC's commitment to certain early works budget. This has
ensured that the work necessary for the Project to meet Chinese
investment standards has continued during the negotiations.
Finalising the tariff will unlock all the remaining milestones
and while we aim to provide updates as regularly as possible, we
must balance this with the sensitive nature of such negotiations.
We continue to believe the Project is in a very strong position as
it is technically sound, has a financing plan in place and able to
provide a commercially attractive tariff. We look forward to
providing further updates in due course."
E nqu iries
For further information please visit www.ncondezienergy.com or
Ncondezi Energy: Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited: Scott Mathieson, Edward Thomas, +44 (0) 20 3100
NOMAD & Joint Broker Kane Collings 2000
Limited +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
Ltd +44 (0) 777 56 55
Investor Relations Elizabeth Johnson 927
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
In 2019, the Company entered 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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(END) Dow Jones Newswires
March 25, 2021 03:00 ET (07:00 GMT)