7th Jun 2019 08:05
LONDON (Alliance News) - Kibo Energy PLC on Friday said, in collaboration with STEAG Energy Services, it has completed a definitive feasibility study at the Benga power plant project in Mozambique.
Kibo holds a 65% stake in Benga.
The study showed that the land is secure for the construction of a 150 megawatts coal-fired power plant, with water from the nearby Zambezi river suitable for treatment and use in the power plant.
Kibo said its recently-completed independent base case financial model - which is currently under review - indicated economic viability and confirmed all assumptions and expectations of the definitive feasibility study.
In parallel with the definitive feasibility study, Kibo said it has concluded substantive inhouse research on a renewable energy component combined with coal fired power plants. This research was aimed at finding solutions to increase electricity production with no additional greenhouse gas emission impact on the environment. The company said initial indications are "promising".
The energy company said it submitted both study reports to the Ministry of Mineral Resources and Energy and Electricidade de Mozambique early in May.
Looking ahead, Kibo said the next step in the project's development process is optimisation of the power plant design with STEAG Energy Services and existing original equipment manufacturer partners.
"The stars are aligning for our major new energy project in Mozambique, Benga, as we continue to advance in its development," said Kibo Chief Executive Louis Coetzee.
"Whilst in the past, we have labelled the project as a thermal coal power project, in reality, it could encompass much more, as our own research on renewable energy and storage options indicate," added Coetzee.
Kibo shares were trading 8.5% higher in London on Friday at 1.11 pence each, while in Johannesburg shares were untraded at ZAR0.35 each.
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