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.


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 
                  --------  ---------------  ------------------------------------  -----------------  ---------------- 
   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 
                                                                                                            of gas 
                                                                                                           and grid 
                                                                                                          - December 
                                                                                                           - March 
                  --------  ---------------  ------------------------------------  -----------------  ---------------- 
                                                       Rochdale (4.4 MW)                Advanced           Renewed 
                                                                                         project         and updated 
                                                                                       development         planning 
                                                                                                          - Q1 2023 
                                                                                                           close - 
                                                                                                            end Q2 
                                             ------------------------------------  -----------------  ---------------- 
                                                       Hindlip Lane (7.5                Concept            Updated 
                                                              MW)                         stage            EPC and 
                                                                                                        O&M contracts 
                                                                                                          - Q3 2023 
                                                                                                           close - 
                                                                                                           Q4 2023 
                                             ------------------------------------  -----------------  ---------------- 
                                                       Stather Road (2.5                Concept           Determine 
                                                              MW)                         stage            date at 
                                                                                                          which grid 
                                                                                                         is available 
                                                                                                          - Q1 2023 
                                                                                                           Rest of 
                                                                                                           TBD once 
                                                                                                          the above 
                                                                                                           has been 
                  --------  ---------------  ------------------------------------  -----------------  ---------------- 
    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 
                                                of synthetic                                              Financial 
                                                    oil.                                                   close - 
                                                                                                           Q3 2023 
                  --------  ---------------  -----------------  -----------------  -----------------  ---------------- 
                                                                     Phase 2          Pre-concept        Milestones 
                                                                     (targeted            stage            TBD once 
                                                                      20 MW)                               Phase 1 
                                                                                                           has been 
                  --------  ---------------  -----------------  -----------------  -----------------  ---------------- 
    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 
                                                                                                          of first 
                                                                                                           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 
                                                                                                          - Q2 2023 
                                                                                                           of Power 
                                                                                                         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 
                                                                                                          - Q2 2023 
                                                                                                          of green 
                                                                                                         gas supply 
                                                                                                          - Q2 2023 
                                                                                                           close - 
                                                                                                         Q2/Q3 2023 
                  --------  ---------------  ------------------------------------  -----------------  ---------------- 
   Katoro Gold     20.88%       Precious                                   katorogold.com 
                              and strategic 
                  --------  ---------------  ------------------------------------------------------------------------- 


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.


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.


For further information please visit www.kibo.energy or contact:

 Louis Coetzee     info@kibo.energy                Kibo Energy PLC          Chief Executive 
 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 
                  ------------------------------  -----------------------  ---------------------- 
 Zainab Slemang    zainab@lifacommunications.com   Lifa Communications      Investor and Media 
  van Rijmenant                                                              Relations Consultant 
                  ------------------------------  -----------------------  ---------------------- 


01 February 2023

Corporate and Designated Adviser

River Group

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