(Alliance News) - Kibo Energy PLC said on Thursday a subsidiary has signed an agreement to expand its portfolio of reserve power plant sites in the UK.
MAST Energy Developments Ltd, in which Kibo owns 60%, already has a portfolio of 100 megawatts worth of reserve power projects.
It has now signed an agreement with Balance Power Projects Development Ltd to build an unspecified number of further sites, which are all "shovel ready".
Kibo Chief Executive Louis Coetzee said: "Having already worked with Balance to acquire the Bordersley five-megawatt plant, we are delighted to strengthen our relationship with a formal agreement. This will provide MAST with a steady flow of shovel ready sites, enabling it to rapidly build an initial portfolio of 100 megawatt reserve energy projects in the UK.
"We hope to replicate the success we have had with Bordersley, which, from its acquisition on June 20, is on track for commercial commissioning at the end of the first quarter of 2020.
"This will see us utilise not only our partnership with Balance, but also our other partners including global player Statkraft Markets GmbH for power purchase agreements and AB Impianti SRL for plant development including the engineering, procurement, and construction and funding," Coetzee continued.
"MAST is progressing at a tremendous pace; we are delighted to be on that journey with its team and look forward to 2020 with confidence."
Kibo shares were 8.3% lower in late trade in London on Thursday at 0.37 pence each, and closed 20% lower in Johannesburg at ZAR0.80.
By George Collard; georgecollard@alliancenews.com
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Kibo Energy (KIBO)