(Alliance News) - Kibo Energy PLC on Monday said it has inked a 10-year clean energy power purchase agreement on a waste-to-energy project in South Africa for an unnamed client.
Kibo is an Africa- and UK-focused energy project company which is listed in both Johannesburg and London. Kibo shares were flat at ZAR0.06 each in Johannesburg on Monday morning, and were up 12% to 0.18 pence each in London.
Kibo inked a 10-year take-or-pay conditional power purchase agreement to generate baseload electricity from a 2.7 megawatt plastic-to-syngas power plant in Gauteng.
The project is the first project under Sustineri Energy, a joint venture in which Kibo holds 65%, with the remaining 35% being held by Centurion, Pretoria-based Industrial Green Energy Solutions Pty Ltd.
Based on an optimised financial model, the joint venture expects ZAR388 million in earnings before interest, tax, depreciation and amortisation over the life of the project, of which Kibo will net ZAR252 million.
The plant will be constructed, commissioned and operated by the joint venture for an unnamed industrial business park developer.
The project will provide the client with cleaner electricity, by making use of a high temperature pyrolysis process, where selected non-recyclable plastics will undergo thermal degradation to produce high quality syngas, which will in turn feed gas engines to generate both electricity and heat energy.
Additionally, Kibo noted, there is potential to sell the heat energy generated as a by-product from the gas engines directly to customers inside the industrial park.
"Following the company's disinvestment from coal, we are excited to have signed our first waste to energy PPA that aligns to our strategy on advancing clean energy in the African market. The Project is a first in a pipeline of projects under the company's waste-to-energy portfolio, which we are proud to have worked on together with our partners," said Chief Executive Louis Coetzee.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Kibo Energy (KIBO)