TIDMKIBO
RNS Number : 5082B
Kibo Energy PLC
14 February 2022
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 14 February 2022
Kibo Energy PLC ('Kibo' or the 'Company')
Kibo inks Ten Year Clean Energy Power Purchase Agreement on
South Africa Waste to Energy Project
Kibo Energy PLC (AIM: KIBO; AltX: KBO), the energy focused
development company is pleased to announce that it has entered into
a 10-year take-or-pay conditional Power Purchase Agreement (`PPA')
to generate baseload electricity from a 2.7 MW plastic-to-syngas
power plant. The plant will be constructed, commissioned and
operated for an Industrial Business Park Developer (the "Client")
in Gauteng, South Africa ("the Project"). The Project, is the first
project under Sustineri Energy, a joint venture in which Kibo
Energy PLC holds 65% and the balance of 35% is held by Industrial
Green Energy Solutions PTY LTD ('IGES').
The Project will provide the Client with cleaner electricity, by
making use of a high temperature pyrolysis process, where selected
non-recyclable plastics will undergo thermal degradation to produce
high quality syngas, which will in turn feed gas engines to
generate both electricity and heat energy. Additionally, there is
potential to sell the heat energy generated as a byproduct from the
gas engines directly to customers inside the industrial park.
Project Highlights
-- Compelling financials: based on the optimised financial
model, an EBITDA of c. ZAR 388 million over the life of project is
expected, for an installed capacity of 2.7 MW, of which an amount
of c.ZAR 252 million is attributable to the Company. There is
potential to expand the project to c. 8 MW installed capacity in
the future.
-- Internal Rate of Return ("IRR"): an IRR between 11% - 14% p/a
is projected on the initial installed capacity of 2.7 MW.
-- Reducing plastic pollution to produce sustainable energy: by
using selected and specific high calorific plastic as fuel
feedstock, which can under prevailing legislation no longer be
dumped at landfill sites, the Project will play an important role
and make a significant contribution towards the advancement of
clean energy generation.
-- Addressing the energy supply issues: the Project will assist
in alleviating the energy supply crisis faced in South Africa by
providing alternative base load supply.
-- Partnerships with industry leaders: Lesedi (
https://lesedins.co.za/ ), a leading EPC and Engineering company,
has been appointed as the Engineering, Procurement and Construction
(EPC) and Operations and Management (O&M) contractors.
-- 2022 development timelines: the CAPEX requirement for the
Project is expected to be c. ZAR 180 million with Financial Close
expected during Q3 2022.
-- Construction and Commissioning: the Construction Phase is
scheduled to commence during Q4 2022 with project commissioning 11
to 14 months thereafter.
NOTE: All the financial numbers stated above remain subject to
change until such time as actual production figures are available,
following a suitable period of steady state operation.
Louis Coetzee, Chief Executive Officer of Kibo, commented :
"Following the Company's disinvestment from coal, we are excited to
have signed our first waste to energy PPA that aligns to our
strategy on advancing clean energy in the African market. The
Project is a first in a pipeline of projects under the Company's
waste-to-energy portfolio, which we are proud to have worked on
together with our partners, IGES.
In the process of getting the PPA ready for signature, the
Company has also been doing a large amount of work on procuring
funding for the Project and has received a higher than expected
level of interest from various institutions, for the provision of
project and debt funding at very competitive commercial terms. With
the signed PPA now in hand, the Company finds itself in a very good
position to advance these discussions with a view on finalising
appropriate funding arrangements for the Project in an expeditious
manner."
This PPA will guarantee revenue generation over the next 10
years, with the potential to realise significant additional revenue
from the sale of heat and other by-products as well, and with the
potential to expand up to a facilty of 8 MW after 24 to 26 months.
"
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
**ENDS**
For further information please visit www.kibo.energy or
contact:
Louis Coetzee info@kibo.energy Kibo Energy Chief Executive Officer
PLC
Andreas Lianos +357 99 53 1107 River Group JSE Corporate and Designated
Adviser
------------------------- ------------------ ----------------------------
Claire Noyce +44 (0) 20 3764 2341 Hybridan LLP Joint Broker
------------------------- ------------------ ----------------------------
Damon Heath +44 207 186 9952 Shard Capital Joint Broker
Partners LLP
------------------------- ------------------ ----------------------------
Bhavesh Patel +44 20 3440 6800 RFC Ambrian NOMAD on AIM
/ Stephen Allen Ltd
------------------------- ------------------ ----------------------------
Isabel de Salis info@stbridespartners.com St Brides Partners Investor and Media Relations
/ Oonagh Reidy Adviser
------------------------- ------------------ ----------------------------
Notes
Kibo Energy PLC is a multi-asset, UK & Africa focused,
energy company. Its main focus at present is on the developing
renewable and waste to energy markets of the UK and Southern
Africa, where the company is developing a diversified portfolio of
energy projects.
Additionally, the Company has a 55.42% interest in MAST Energy
Developments Plc ('MED') an LSE listed UK company targeting the
development and operation of flexible power plants to service the
UK Reserve Power generation market.
Johannesburg
14 February 2022
Corporate and Designated Adviser
River Group
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