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(Sharecast News) - Kibo Energy has initiated a process for requests for proposals to investigate the feasibility of replacing coal with renewable biofuel in its power projects, it announced on Thursday.
The AIM-traded firm said the decision followed an "extensive review" of its operations and assets, in which it decided to dispose of all of its coal assets while retaining the associated power projects through the introduction of biofuel technology.
Through the process, Kibo said it was intending to appoint an "experienced international biomass and biofuel consultant" to determine the economic and technical viability of using specific biomass, or 'bio-coal', technology as a feasible fuel source at industrial scale in its existing and already-developed utility-scale power projects.
The feasibility studies would investigate whether sufficient biomass could be sustainably produced and supplied as fuel for a 300 MW power plant over a 20-to-25-year power purchase agreement period.
Kibo said the biofuel technology, which would be the subject of the investigation, had already been subjected to "extensive" bench testing, and thus far had delivered positive results in all tests performed.
"By undertaking this evidence-based process, we believe we should be able to replace the traditional coal-mining activity with a 100% renewable energy source," said chief executive officer Louis Coetzee.
"Work completed to date indicates that our existing coal-fired power plants can be easily adapted to accept the new renewable fuel solution with only minor design changes on the energy-generation side."
Coetzee said pilot plant and laboratory tests showed "very positive results" in terms of delivering bio-coal at a quality and quantity comparable to and in most instances better than, typical fossil thermal coal.
"Should the full investigation into the process of replacing coal with bio-coal deliver the expected positive results, our existing coal-fired power plant projects will be converted into renewable base-load energy projects that are carbon neutral and in line with Kibo's sustainable, renewable energy strategy."
At 1227 BST, shares in Kibo Energy were up 4.59% at 0.19p.
Reporting by Josh White at Sharecast.com.
