Kibo Energy to supply electricity to Tete Steel and Vanadium

Kibo Energy PLC, the multi-asset, Africa focused, energy company, has provided an update on its Mozambique projects, notably the Benga Power Plant Project (BPPP) and the Baobab Power Station Project (Baobab Project).

Significant progress has been made as Kibo looks to deliver 350 MW to 400 MW; a supply agreement is being targeted for BPPP that would deliver a total of c.150 MW to Mozambique utility Electricidade de Moçambique (EDM), whilst the Company has a binding term sheet with Baobab Resources Ltd (Baobab) to supply c. 200MW energy to Baobab’s Tete Steel and Vanadium Project in Mozambique from the proposed Baobab Project.

HIGHLIGHTS

• Grid Impact Assessment and Integration Study on BPPP completed, reviewed and submitted to EDM – this forms an important part of the DFS optimisation and financial model integration for BPPP
• Technical and Financial Feasibility review of the Baobab Project completed
• Integration study to assess feasibility of 400 MW combined project for the Baobab Project and BPPP commissioned, based on positive findings from technical and financial review of the Baobab Project
• PPA discussions / negotiations with both EDM and Baobab on schedule for completion by the end of this year and the beginning of Q4 respectively.

Louis Coetzee, CEO of Kibo Energy, commented, “We are extremely pleased with the progress being made in Mozambique, which will eventually culminate in at least two Power Purchase Agreements totalling c.350 – 400 MW. Our development options currently remain open as to whether we construct one power plant to fulfil both supply agreements or two separate plants to service Baobab and EDM independently and we look forward to finalizing the integration study to better assess and define the optimal approach in this regard. Either way both agreements will continue to progress at pace, unencumbered by the other, so that we can realise meaningful value for our shareholders and our power clients.”