Kibo Energy's subsidiary 'moving quickly' on UK plant acquisitions

Kibo Energy on Wednesday reported that its UK subsidiary is negotiating development agreements at two gas-fired sites which are anticipated to be operational by the end of the first quarter of 2020, while operations in Mozambique are ahead of schedule.

Subsidiary MAST Energy Developments Limited (MED), which targets the development and operation of flexible power plants to service the reserve power generation market, has completed due diligence on two flexible power plants totalling 25.2Mw, with exclusive rights on a third 6Mw site extended until 31 March.

Kibo and MED are currently evaluating client engineer and EPC service providers for both sites that due diligence has been completed for, as well as evaluating conditional offers for debt financing that have been received from two financial institutions.

Louis Coetzee, chief executive of Kibo Energy, said: "MED is moving quickly, building a portfolio of flexible power plants, which will provide early revenue. I am impressed with the MED team's focus as they look to provide a valuable source of power, which blends with the intermittent supply currently being delivered by renewables into the UK energy mix."

Meanwhile, in Mozambique, the definitive feasibility for the Benga coal-fired power station is "well ahead of schedule" and the priority now to sign agreements with coal suppliers and electricity buyers, according to Kibo.

The 150-300Mw coal-fired power Benga development is 65% owned by Kibo, with the remaining stake is held by local power group Termoeléctrica its partner.

"We are delighted with the rapid progress being made at the Benga project, which we anticipate will help alleviate the critical energy shortages in Mozambique. With its strong regional and governmental support, a DFS designed to confirm the project's commercial and operational viability is progressing well ahead of schedule, whilst both PPA discussions with prospective off-takers and negotiations with potential coal suppliers are also advancing," said Coetzee.

Kibo Energy's shares were down 5% at 1.90p at 1109 GMT.