(Alliance News) - Energy firm Kibo Energy PLC on Tuesday said it has signed an agreement with South Africa-based Industrial Green Solutions Pty Ltd for the joint development of a portfolio of waste-to-energy projects in South Africa.
Under the agreement's terms, the partners will form a new company known as Newco Energy Pty Ltd that will hold the project portfolio. Kibo will own 65% of Newco, and Industrial Green the remaining 35%.
Newco will initially develop a phased eight-megawatt project for an undisclosed industrial client in Pretoria, South Africa, which will be followed by six other projects at different sites, up to 50 megawatts in power generation.
For the first project, Kibo will fund Newco, starting with an amount of ZAR11.1 million, or GBP560,000, as an equity loan.
The initial project pipeline with use pyrolysis technologies to convert waste non-recyclable plastics to syngas for the generation of energy.
"This opportunity to enter the South African waste-to-energy market in strategic partnership with Lesedi and IGES, is a win-win for all parties. For Kibo, today's agreement is in line with our strategy to integrate sustainable environmentally friendly energy generation into our portfolio, which could shortly include waste-to-energy projects in the UK currently the subject of a due diligence investigation. The 50 megawatt project pipeline also positions Kibo squarely in the new and exciting renewable energy industry in South Africa and places us firmly on a programme to production and revenue in the short to medium term," said Chief Executive Officer Louis Coetzee.
Shares in Kibo Energy were flat at 0.29 pence on Tuesday in London, while its Johannesburg shares were up 7.1% at ZAR0.15.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kibo Energy (KIBO)