Kibo Energy #KIBO – MAST Energy Developments agreement with Balance Power Projects to build pipeline of reserve power plant sites

Kibo Energy PLC, the multi-asset, Africa focused, energy company, is pleased to announce an update on its 60% owned subsidiary, MAST Energy Developments Limited (‘MED’), a private UK registered company targeting the development and operation of flexible power plants to service the UK reserve power generation market.

Overview

·    Agreement with Balance Power Projects Development Ltd to build pipeline of shovel ready reserve power plant sites

·    MED on track to roll-out an initial portfolio of 100 MW of reserve power projects in the UK

Louis Coetzee, CEO of Kibo Energy, commented, “Having already worked with Balance to acquire the Bordersley 5 MW plant, we are delighted to strengthen our relationship with a formal agreement.  This will provide MED with a steady flow of shovel ready sites, enabling it to rapidly build an initial portfolio of 100 MW reserve energy projects in the UK.

“We hope to replicate the success we have had with Bordersley, which, from its acquisition on 20 June 2019, is on track for commercial commissioning at the end of Q1 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 S.R.L for plant development including the EPC and funding.

“MED is progressing at a tremendous pace; we are delighted to be on that journey with its team and look forward to 2020 with confidence.”

Details

MED is focused on developing a portfolio of small-scale reserve power generation projects, initially in the UK.  In line with this, MED has signed a Site Development Agreement (‘SDA’) with Balance Power Projects Development Ltd (‘Balance’) to fulfil MED’s strict selection criteria to ensure top of the line performance and precise planification of building its power plants.

Under the terms of the SDA, Balance shall identify potential sites for projects, undertake feasibility analysis and, if MED agrees, take the necessary steps to secure and make ready the site for the commencement of plant development.  Each project will be put into a Special Project Vehicle (‘SPV’), which will be 100% owned and run by MED. 

Balance is a UK based developer of gas-based peak power plants, delivering low-cost power capable of rapidly responding to an increasingly volatile energy market. It manages the process from initial development through to commercial operation for its partners, working closely with landowners, land agents, distribution network operators and financial institutions to meet the growing demand in the sector.

**ENDS**

For further information please visit www.kibo.energy or contact:

Notes

Kibo Energy PLC is a multi-asset, Africa focused, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company’s objective to become a leading independent power producer in the region.

Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana; and the Benga Independent Power Project (‘BIPP’) in Mozambique.  By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance.

Additionally, the Company has a 60% interest in MAST Energy Developments Limited (‘MED’), a private UK registered company targeting the development and operation of flexible power plants to service the UK Reserve Power generation market.