TIDMKIBO
RNS Number : 4685O
Kibo Energy PLC
01 February 2023
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: 7am 01 February 2023
Kibo Energy PLC ('Kibo' or the 'Company')
Operational Update: 2023
Kibo Energy PLC (AIM: KIBO; AltX: KBO), the
renewable-energy-focused development company, is pleased to provide
an operational update, following an eventful but productive year of
dedicated hard work amidst extraordinary challenges.
In accordance with the Company's existing operational policy,
the Kibo Executive Management team conducted an extensive review of
the Company's project portfolio at the end of 2022, which included
an operations review. The key elements of said operational review
are discussed below.
Portfolio
The Kibo Group strategy, as previously announced in a Company
RNS dated 19 April 2021, is focused on developing, owning and
operating sustainable energy solutions that can immediately and
progressively address the acute energy challenges in sub-Saharan
Africa, the United Kingdom and Ireland. The Company achieves this
by acquiring and developing energy assets that can be brought into
production within an 18-to-24-month timeline. This strategy is
evident from the comprehensive project portfolio set out in the Q4
2022 Corporate Presentation on the Company's website and which
should be read in conjunction with this RNS.
The table below indicates the status of Kibo's Project Portfolio
to date. This does not include project opportunities that are
currently the subject of advanced due diligence and commercial
consideration.
Kibo Group Project Portfolio
Entity Kibo Strategic Projects Development High-Level
Equity Domain Status Indicative
Milestone
-------- --------------- ------------------------------------ ----------------- ----------------
MAST Energy 57.86% Reserve Pyebridge (9 MW) Operational
Developments Power and generating
(UK) revenue
-------- --------------- ------------------------------------ ----------------- ----------------
Bordesley (5 MW) Advanced Financial
project close -
development Q1 2023
Installation
of gas
and grid
connection
- December
2023
Commercial
operation
- March
2024
-------- --------------- ------------------------------------ ----------------- ----------------
Rochdale (4.4 MW) Advanced Renewed
project and updated
development planning
consent
- Q1 2023
Financial
close -
end Q2
2023
------------------------------------ ----------------- ----------------
Hindlip Lane (7.5 Concept Updated
MW) stage EPC and
O&M contracts
- Q3 2023
Financial
close -
Q4 2023
------------------------------------ ----------------- ----------------
Stather Road (2.5 Concept Determine
MW) stage date at
which grid
connection
is available
- Q1 2023
Rest of
milestones
TBD once
the above
has been
established
-------- --------------- ------------------------------------ ----------------- ----------------
Sustineri 65% Waste CHP project Phase 1 Advanced Feasibility
(SA) to Energy to supply (2.7 MW project study update
base-load + study development on oil
electricity on synthetic stage production
generation oil production) addition
in South - Q1 2023
Africa with
4 revenue Completion
streams: of integration
electricity, study and
gate fees finalization
and potentially of off-take
from heat agreement
and steam for oil
output as production
well as the - Q2 2023
production
of synthetic Financial
oil. close -
Q3 2023
-------- --------------- ----------------- ----------------- ----------------- ----------------
Phase 2 Pre-concept Milestones
(targeted stage TBD once
20 MW) Phase 1
has been
executed
-------- --------------- ----------------- ----------------- ----------------- ----------------
National 51% Long Simultaneous Projects
Broadband Duration 12.3 MW in development concept to be announced
Solutions Energy and commercial as off-take
(SA) Storage development agreements
are finalized
with
finalization
of first
agreements
expected
during
Q1 2023
-------- --------------- ------------------------------------ ----------------- ----------------
36.32 MW target for Under
development development
-------- --------------- ------------------------------------ ----------------- ----------------
Mbeya Power 100% Biofuel 300 MW short-term Original Completion
Project ("MPP") conversion to renewable project. of concept
(TZ) energy biofuel Fully permitted study for
with Bankable conversion
Feasibility of MCPP
Study completed project
to
bio-coal
- Q2 2023
Completion
of Power
Purchase
Agreement
with TANESCO
- Q3 2023
-------- --------------- ------------------------------------ ----------------- ----------------
UK Portfolio 100% Waste Southport (10 MW, Completion
to Energy 2MW long duration of front-end
energy storage and engineering
and design
5.5m m(3) bio-methane) (FEED)
study -
Q1 2023
Submission
of
environmental
permit
application
- Q2 2023
Submission
of green
gas supply
scheme
application
- Q2 2023
Financial
close -
Q2/Q3 2023
-------- --------------- ------------------------------------ ----------------- ----------------
Katoro Gold 20.88% Precious katorogold.com
and strategic
minerals
-------- --------------- -------------------------------------------------------------------------
Notes
The notes below address the most recent announced initiatives in
the interest of providing additional context.
Waste to Energy
The plastic-to-syngas project in South Africa, Sustineri, as
announced in an RNS dated 17 January 2023, has commenced with an
optimisation and integration study into the production of synthetic
oil from non-recyclable plastic waste, thereby adding a potential
accelerated additional revenue stream to the project. Since
synthetic oil is formed as part of the plastic-to-waste pyrolysis
process to produce syngas, the production thereof would require a
slight amendment to the process as was designed in the feasibility
study phase for syngas in the electricity generation process. This
implies that the Project can be developed for execution in two
distinct phases, with a first phase being the production of
synthetic oil and a second phase the production of syngas and
electricity.
The decision to pursue the production of synthetic oil as part
of phase 1 is expected to have a positive impact on the Project's
profitability and provides the Company with the opportunity to
generate revenue much earlier than initially projected.
Additionally, it provides an opportunity to construct and
commission the pyrolysis plant and related infrastructure earlier,
thereby facilitating early revenue. Finally, it also contributes
materially to de-risking the Project and will make the Project
significantly more attractive to a wider spectrum of interested
funders, thereby reducing the funding risk and improving the
ability to secure said financing.
As the optimisation study is already underway, it is believed
that a technical conclusion may already be reached by end of Q1
2023. As the major project technical and commercial milestones have
already been achieved, this will allow the accelerated completion
of the funding discussions and commencement of project
execution.
Biofuel
The Company, after determining the technical feasibility of the
production of bio-coal from biomass, is currently determining the
commercial viability of this process under a variety of industrial
scale applications. In this regard, the company is undertaking both
due diligence investigations and participating in advanced
discussions on several projects.
Apart from potentially providing a sustainable fuel source for
the Mbeya Power Project and subsequently potentially for the two
remaining 300MW projects in the Kibo portfolio (i.e. MCIPP and
Benga) as well, there is an opportunity to source and/or cultivate
biomass to produce bio-coal at strategically placed biofuel
production plants for various leading international companies in
the manufacturing industry. The Company is working closely with
these manufacturers, who operate a significant number of
manufacturing plants in Southern Africa, to complete extensive
feasibility studies at identified operating plants. To this extent
the Company has already determined and agreed on a roll-out plan to
supply some of these operating plants with their total fuel
requirement in the form of biofuel, completely replacing their
current dependence on coal.
Immediate and Short-Term Focus
In executing the Company's strategy referred to above, the
Company continues to actively execute the following strategic work
streams:
-- Exit coal by a disposal process of its coal assets, all of
which are in southern and eastern Africa (RNS dated 16 June 2021).
This process is still underway, and the Company has entertained
various approaches/offers since and is currently considering a
definitive term sheet in this regard which, should it be agreed,
the Company expects to announce. The Company's various coal assets
are however faced with some fundamental challenges, of which the
following are the most important:
o Funding for the construction of new coal mines is not readily
available, especially for thermal coal deposits;
o All the Kibo coal assets are situated in very remote areas
with very little to no existing infrastructure, far away from any
export port (more than 800 km) and with no significant local coal
market; and
o The Kibo coal assets are thermal coal deposits and, although
thermal coal is in big demand now, it does not command a premium
price, which makes such deposits less attractive for exporters,
especially when considered in conjunction with the above two
points.
-- Convert its African electricity-generating asset fuel supply
from coal to biofuel technology, subject to proven technical and
commercial feasibility (RNS dated 25 August 2022).
-- Identify and secure South African and United Kingdom Waste to
Energy ("WtE") and flexible/reserve-power projects (RNSs dated 18
May 2021 and 19 April 2021, respectively).
-- Enter the Long Duration Energy Storage ('LDES') market,
comprising Battery Energy Storage Systems ('BESS') integrated with
utility-scale and microgrid renewable energy solutions (RNS dated
17 May 2022).
-- Realise shareholder value with the continuation of its
spinout strategy, whereby the Company's WtE and biofuel projects to
be potentially held in a new AIM-listed vehicle. Ultimate
Sustainable Energy LTD ('USE'), is being prepared for listing on
AIM via an initial public offering ('IPO'). (See RNS dated 29
September 2022). In this regard, as part of planning and
preparation of the IPO referred to above, the Company has
identified a Nomad and Broker and is in advanced negotiations
towards agreeing engagement and mandate letters with a view of
completing the IPO during Q2 2023.
Corporate Update
At the start of the new year, in an RNS dated 11 January 2023,
the Company announced the appointment of Beaumont Cornish Limited
('BCL') as its new Nominated Adviser (NOMAD). The Company
furthermore welcomed Ajay Saldanha as an independent non-executive
director to its Board of Directors. Ajay Saldanha (aged 47) is an
experienced banking and investment professional with more than 20
years of experience in the power, energy and utilities sector.
The Company is currently sufficiently funded through its
existing financing facilities, assuming deferral or otherwise
settlement in equity of the bridge loan facility announced on 16
February 2022 and GBP660,000 Convertible Loan Instrument held by
Kibo executive management and directors, to cover operational
expenditure for the short to medium term while the Company actively
pursues various funding opportunities. These include equity, debt
and project financing, to fund the ongoing development of the
various projects within the Kibo Group Project Portfolio and to
bring the advanced projects, as outlined above, to Financial Close
as soon as possible. Most of the projects included in the Project
Portfolio are in advanced stages of development and Kibo is working
towards achieving Financial Close for all the advanced projects
during the course of 2023, with the specific exclusion of the Mbeya
Power Project where Financial Close can realistically only be
achieved during 2024.
Louis Coetzee, Chief Executive Officer and Non-Executive
Chairman of Kibo Energy, says: "We are pleased with the progress we
have made since announcing our re-focused strategy to pivot to
renewable/alternative energy in 2021. In following this strategy,
Kibo has built a robust and diversified project pipeline and
bolstered its project development capacity. This diversified
portfolio sufficiently de-risks the Kibo strategy execution from
Management's perspective and has successfully propelled the Company
to a position where it currently has the realistic expectation of
seeing several projects in revenue generation status over the next
12 to 24 months.
The Company has furthermore strengthened its in-house capability
significantly with management and project teams that have extensive
skills, knowledge and experience in the renewable energy sector. In
this regard, the Company has also recently concluded negotiations
with a well-respected international executive in the long-duration
energy storage industry to join the Kibo team in heading up the
Company's renewable energy and long-duration storage business
division. Further announcements will be made in this regard as soon
as a commencement date has been finalized.
2023 promises to be an eventful year for Kibo and we look
forward to providing the market with further updates in due
course."
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 PLC Chief Executive
Officer
James Biddle +44 207 628 3396 Beaumont Cornish Nominated Adviser
Roland Cornish Limited
------------------------------ ----------------------- ----------------------
Claire Noyce +44 20 3764 2341 Hybridan LLP Joint Broker
------------------------------ ----------------------- ----------------------
Damon Heath +44 207 186 9952 Shard Capital Partners Joint Broker
LLP
------------------------------ ----------------------- ----------------------
Zainab Slemang zainab@lifacommunications.com Lifa Communications Investor and Media
van Rijmenant Relations Consultant
------------------------------ ----------------------- ----------------------
Johannesburg
01 February 2023
Corporate and Designated Adviser
River Group
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END
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