Kibo Energy plc, the multi-asset Africa-focused energy company, announced that a definitive feasibility study (DFS) has been designed to confirm Benga Independent Power Project’s commercial and operational viability is progressing well ahead of schedule
Kibo’s 65 per cent owned Benga Independent Power Project in Mozambique includes a 150-300MW coal-fired power station, being advanced toward potential development with its joint venture partner, Termoelectrica de Mozambique de Benga SA.
Louis Coetzee, CEO of Kibo Energy said, “With its strong regional and governmental support, a DFS designed to confirm the project’s commercial and operational viability is progressing well ahead of schedule, whilst both PPA discussions with prospective off-takers and negotiations with potential coal suppliers are also advancing.”
Highlights
· Discussions regarding power purchase agreements (PPAs) with prospective off-takers continue to advance
· Negotiations with potential coal suppliers and private power off-takers progressing well; these will receive priority attention during Q1 2019
· 2019 work plan advancing including final grid integration study, DFS, geotechnical work, financial model, engineering, procurement, and construction (EPC) technical specifications, EPC benchmarking and award, and environmental impact assessment (EIA)
· Site visits included a productive meeting with the Ministry of Energy and Minerals on further development of the project
The company announced the renewal of a MoU with Mozambican state-owned electric utility, Electricidade de Mocambique (EDM), to advance the financing, construction and operation of this project. Additionally, negotiations with potential coal suppliers and private power off-takers are progressing well; these will receive priority attention during Q1 of 2019.
Benga aims to initially deliver a 150MW coal-fired power station and already possesses a suite of authorisations and agreements in addition to a lease title over land in the Tete province, Mozambique. By default, it will remain in compliance with relevant Mozambique legislation, which will include power, environmental and social responsibility objectives.
