Kibo Energy to develop a portfolio of Waste to Energy projects in South Africa.
(KIBO ) said it has entered into an agreement with South Africa-based Industrial Green Solutions to jointly develop a portfolio of Waste to Energy projects in South Africa.
The African focused energy firm said the agreement, which is subject to the satisfaction of certain conditions, is in line with the firm’s strategy to integrate renewable energy into its project pipeline, which includes three utility-scale power generation and mining projects.
Under the terms of the deal, Kibo will own 65% of Newco Energy (Pty) Ltd ('Newco'), which will hold the Waste to Energy Project Portfolio, with IGES holding 35%. The portfolio’s initial target is to generate more than 50 megawatts of electricity for sale to industrial users.
The initial project pipeline will comprise seven projects and will utilise Pyrolysis technologies to convert waste non-recyclable plastics to syngas for the generation of energy.
The pyrolysis technology is to be supplied by a local international technology firm in the form of a waste to energy conversion plant while the syngas is to be stored on site and fed into gas engines to generate electrical power. The firm said off takers for all seven projects have been identified with Power Purchase Agreement ('PPA') negotiations underway.
Shares in Kibo Energy have increased by nearly 50% in value since the beginning of 2021. The stock was trading 3.45% higher this morning at 0.3p following the announcement.
To begin with, Newco will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW.
An MOU has been agreed on the supply of energy signed with an industrial client in Centurion which includes a 10-year "Take or Pay" PPA negotiated subject to independent review.
Kibo outlined that the capacity for this initial project is to be scaled up from c. 2 MW to 8 MW, in 4 x 2 MW phases over three years while the project development is expected to last for the first phase of 2 MW for no longer than 16 months including construction, it noted.
"This opportunity to enter the South African waste to energy market in strategic partnership with Lesedi and IGES, is a win - win for all parties,” said Louis Coetzee, CEO of KIBO.
“For Kibo, today's Agreement is in line with our strategy to integrate sustainable environmentally friendly energy generation into our portfolio, which could shortly include waste to energy projects in the UK currently the subject of a due diligence investigation.
The 50MW project pipeline also positions Kibo squarely in the new and exciting renewable energy industry in South Africa and places us firmly on a programme to production and revenue in the short to medium term,” Coetzee added in this morning’s statement.
Kibo said its efforts to enter the market comes at a time when electricity is in short supply in South Africa and that, despite the efforts of the management of National Utility, ESKOM, rolling blackouts have remained an integral part of the industrial landscape in the country.
‘Furthermore, several current coal-fired power plants will come to the end of their economic lifespan in the next ten years, further curtailing energy supply. An indicative near-term energy requirement of 11,800MW was recently envisaged by the President of South Africa,’ it said.
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