14th Jul 2022 08:28
Kibo Energy PLC - Galway, Ireland-based company with energy projects in Africa and UK - Extends to 20 years from 10 years the waste-to-energy power purchase agreement that was first announced back in February. The agreement outlines the construction, commissioning and operation of a 2.7 megawatt plastic-to-syngas power plant to generate baseload electricity for an industrial business park developer in Gauteng province, South Africa. The project is the company's first under its joint venture, Sustineri Energy, in which Kibo Energy holds 65% and Industrial Green Energy Solutions (Pty) Ltd holds the balance.
Commenting on the extension, Kibo Energy Chief Executive Louis Coetzee says: "It signifies a confidence in the project and significantly increases its attractiveness to prospective debt and project funders. We already saw significant interest from potential debt and project funders, prior to the term extension and we believe that the term extension will make the already advanced process of securing debt and project funding significantly smoother and quicker."
The extension is expected to increase projected earnings before interest, tax, depreciation and amortisation from the project to ZAR953 million from ZAR388 million. Of the increased amount, ZAR619 million is attributable to Kibo. The construction phase is scheduled to commence during the first quarter 2023, with project commissioning 11 to 14 months thereafter.
London current stock price: 0.12 pence, up 17% on Thursday
12-month change: down 49%
Johannesburg current stock price: ZAR0.04
12-month change: down 60%
By Artwell Dlamini; [email protected]
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