Kibo Energy subsidiary acquires 4.4MW Rochdale gas power project

Kibo said MAST, which it holds a 55% stake in, has entered into a sale and purchase agreement to acquire a 100% interest in Rochdale Power from Balance Power Projects for the installation of the flexible gas power project in Dig Gate Lane, Rochdale.

The AIM-listed group said the acquisition costs of the freehold amounted to £90,000, with the property rights amounting to £132,000, funded from MED's current working capital budget.

Kibo added that "proven and significant market demand" with a "blue-chip off-taker" had also already been secured.

Chief executive Louis Coetzee said: "With increasing supply/demand volatility, the reserve power market is the fastest growing energy sector in the UK and accordingly there is significant demand for flexible power projects of this kind and at increasingly attractive economics.

"We anticipate that the net profit stream from the Pyebridge, Bordesley and Rochdale facilities, totalling 18.4 MW, will be c. £92,000 per month by Q2 2022, the time at which we expect all three sites to be fully operational and in steady state production."

As of 1015 BST, Kibo shares were up 4.57% at 0.23p.