Kibo Energy to supply Tete Steel and Vanadium

Kibo Energy PLC, the multi-asset, Africa focused energy company, says the Benga Project, located in the Tete province of Mozambique, is the Company’s highest development priority; it holds a 65% interest in the project with the remaining 35% held by a local company, Termoeléctrica de Benga.

The project was developed for a c. 150 MW PPA with local state electric utility Electricidade de Moçambique (‘EDM’). An updated Memorandum of Understanding was signed with EDM during 2020, which provides for its continued support and commitment to negotiate a PPA for power off-take for the national grid.

The project is now in the process of being upgraded to accommodate a c. 200 MW additional private commercial off taker in the form of the Tete Steel and Vanadium Project with Baobab Resources.

To date, the Defined Feasibility Study was updated and optimised to satisfy EDM and Baobab’s power off-take requirements with the incorporation of a grid impact assessment and integration studies as well as an updated technical and financial review of the project during the second half of 2020.

The MCIPP Project in Botswana sees Kibo assume a 35% equity interest in the total 761 Mt Mabesekwa Coal Resource while maintaining its 85% interests in the existing MCIPP project for the development of a 300 MW coal to power plant and participate as a 35%-40% partner with Shumba for the development of a second 300 MW power with electricity output directed solely to a petrochemical plant being developed by Shumba and other parties.

The project is aligned with Shumba’s progress and therefore assumes a low development priority in the Kibo portfolio.

The Mbeya Project, with its 120 Mt Coal Resource, developed to a 1,5 million tonnes per annum mine, holds seven mining rights over the coal resource that will provide fuel to the 300 MW MCPP thermal power plant. The MCPP Environmental Impact Assessment certification for both mine and power station remain valid.

The Company continues to work closely with the Tanzanian Government, partners, and other stakeholders to identify and investigate alternative commercial opportunities both within Tanzania and regionally.

Kibo entered into an agreement with South Africa-based Industrial Green Solutions to jointly develop a portfolio of Waste to Energy projects in South Africa with an initial target of generating more than 50 megawatts of electricity for sale industrial users.

The Agreement, which is subject to the satisfaction of certain conditions, is in line with Kibo’s strategy to integrate renewable energy into its project pipeline, which includes three utility-scale power generation and mining projects.

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