26th Aug 2020 12:16
(Alliance News) - Kibo Energy PLC said Wednesday it has made "significant" progress with its Mozambique power project portfolio.
Kibo is looking to deliver 350 megawatt to 400 megawatt; a supply agreement is being targeted for Benga power plant project that would deliver a total of about 150 megawatts to Mozambique utility Electricidade de Moçambique, whilst the company has a binding term sheet with Baobab Resources Ltd to supply about 200 megawatts energy to Baobab's Tete steel and vanadium project in Mozambique from the proposed Baobab project.
Kibo Chief Executive Louis Coetzee said: "We are extremely pleased with the progress being made in Mozambique, which will eventually culminate in at least two power purchase agreements totalling about 350 to 400 megawatts.
"Our development options currently remain open as to whether we construct one power plant to fulfil both supply agreements or two separate plants to service Baobab and EDM independently and we look forward to finalising the integration study to better assess and define the optimal approach in this regard. Either way both agreements will continue to progress at pace, unencumbered by the other, so that we can realise meaningful value for our shareholders and our power clients."
Shares in Kibo Energy were down 7.4% in London on Wednesday at 0.23 pence each. In Johannesburg, they were flat at ZAR0.09.
By Paul McGowan; [email protected]
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