Friday , July 12 2024

Kibo dispose coal project, eyes clean energy projects

…as coal rush fade away

Kibo Energy has announced intentions to refocus, dispose of coal energy projects to focus on renewable energy opportunities.

Kibo’s blueprint is in line with the company’s refocused strategy centred on sustainable renewable energy solutions.

The development comes following the positive results of an extensive due diligence process regarding the agreement with South Africa-based Industrial Green Solutions (Pty) Ltd (IGES).

“First, we are delighted to be progressing with this exciting opportunity to develop waste to energy projects within South Africa as momentum in the global clean energy revolution increases.

“Set against this background, we believe that it is appropriate to refocus our strategy to utilise our team’s expertise and contacts as well as partnerships in the energy sector to rapidly grow our renewable energy portfolio and capitalise on what, in our view, is a ubiquitous growth story that will run for many years,” said Louis Coetzee, Chief Executive Officer of Kibo.

He said shifting the company’s primary focus to renewable energy projects will provide the company with the opportunity to develop projects with much smaller CAPEX requirements and with a significantly shorter route to revenue generation that is associated with much less risk and access to a far wider and cheaper array of non-dilutive funding options.

However Kibo believes it will continue to play a key role in Africa’s energy dynamics, we also believe that a larger entity would be better placed to take our own coal-fuelled power projects to production.

“We hope to maintain exposure to the significant upside potential of these projects but have decided to step down from our role as their primary funder and developer.  We look forward to updating the market further on the agreement, the disposals and our refocused strategy,” Coetzee said.

According to the company’s directors, clean coal-fuelled power projects will continue to be necessary for a transitional period of some decades to support Africa’s rapidly increasing energy requirements.

Kibo has been developing three utility scale, coal-fuelled power projects, located in Tanzania, Botswana, and Mozambique.

The company’s decision comes as global governments gather pace on reducing reliance on carbon fuels within their energy strategies.

“With this background, the company undertook a review of operations to establish the best way to extract the substantial value it had created in its coal-fuelled projects for shareholders,” said Coetzee.

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