KIBO Energy – which is developing three thermal coal projects in Mozambique, Botswana and Tanzania – has changed its overall strategy and will get out of coal to focus on “renewable energy opportunities”.
In particular, Kibo intends pushing ahead with the development of a portfolio of “waste to energy” projects in South Africa where the company notes that: “The South African government’s recent announcement to allow private investors to establish up to 100 megawatts (MW) of generating capacity without requiring a licence/permit provides further impetus in this regard and will bring along significant new opportunities”.
The waste to energy projects will be developed through a joint venture with South African-based Industrial Green Solutions (IGES) and will convert plastic waste provided by waste disposal operators into syngas using Pyrolysis technology. The syngas will be then be stored on site and fed into gas engines to generate electricity.
According to Kibo CEO Louis Coetzee “… a Newco will be established in which Kibo will hold 65% for an equity loan contribution of R11.1m that will be used to develop the first eight megawatt project in several phases. IGES will hold 35% for an equity contribution valued on the basis of a seven-project development portfolio and development expenditure to date.”
Coetzee said the initial target was to generate more than 50MW of power for sale to industrial users and added “… the first late-stage project has access to land, key licences and approvals acquired with an offtake memorandum of understanding and power purchase agreement negotiations concluded”.
Kibo’s coal projects include a 65% stake in the Benga independent power project (IPP) in Mozambique which has the right to build a 150MW to 300MW power station; an 85% stake in the Mabesekwa IPP in Botswana which is currently at the feasibility stage and a 100% interest in the Mbeya coal to power project in Tanzania.
Coetzee said Kibo intends implementing “an appropriate disposal strategy to dispose of its coal assets or possibly repositioning these assets to make use of alternative fuel sources other than coal, given latest rapid advances in developing alternative fuel sources in this domain”.