Kibo Energy PLC - UK Subsidiary Secures Third Reserve Power Site
Kibo Energy PLC (Incorporated in
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
28 October 2020
Kibo Energy PLC ('Kibo' or the 'Company')
Option with Lease Heads of Agreement for the Installation of a 6 MW Synchronous Gas-powered Standby Generation Facility in
Kibo Energy PLC ('Kibo' or the 'Company'), the multi-asset
· HOT to install a 6 MW flexible gas power project in the
· Expands existing portfolio of
o 100% interest in 5 MW gas fuelled Bordesley power generation plant, currently under development and scheduled for commissioning in Q1 2021
o 100% interest in the acquisition of a 9 MW flexible gas power project
· Proven and significant market demand with blue-chip off-taker already secured
· Power generation can be controlled remotely, maximising efficiencies, and will match times of peak demand within the local network when called upon by the National Grid
· Project development subject to successful listing of Sloane, to be renamed Mast Energy Developments Plc ('MED'), on the Standard List of the London Stock Exchange:
o Admission is progressing well with the appointment of all the relevant advisers finalised and first submission of the prospectus to the FCA made
o Targeting listing before the end of 2020, opening the way for rapid growth during 2021 utilising funds raised by MED as part of its listing
o Kibo to retain a strategic interest of at least 51%
"Following the LSE Admission, Sloane will be in a position to develop its portfolio at scale and pace, as opposed to on a project-by-project basis and advance significantly towards imminent revenue generation. With the listing progressing on track and due to be completed by the end of this year, this is an exciting period for both Sloane and Kibo. We look forward to providing further updates on progress in due course as we focus on realising meaningful value for all stakeholders."
Installation of a 6 MW flexible gas power project
· Near shovel-ready project:
o Lease hold site with planning and permitting in place for the installation of a 6 MW synchronous gas-powered standby generation facility with ancillary infrastructure.
o The installation will comprise a 3 by 2 MW gas reciprocating configuration. The specific level of noise from the generators shall not increase the existing ambient sound level by more than 1dB at any nearby noise sensitive educational receptor existing at the date of permission.
o The proposed scheme will feed its power into the local distributive network operated by the local distribution network operator rather than into the transmission network operated by the National Grid, thereby having the key benefit of avoiding transmission losses.
o Natural Gas will be delivered to the generators onsite via a connection to the local gas distribution network. The primary function of the proposed development is to provide electrical generation into the local distributive network when called upon by the National Grid. Times of generation will match times of peak demand within the local network and generation can be controlled remotely.
· Guaranteed income:
o Revenue will be created by selling electricity generated to the blue chip off-taker in terms of the contractual arrangements Sloane/MED already have in place.
· Rapidly growing target market:
o Increasing volatility arising from structural shift from fossil fuels to renewable sources and rising spend on gas & electricity is resulting in tight capacity margins during peak times.
· Project development subject to successful listing of Sloane:
o Costs of EPC Scope of Works are estimated as
· Sloane LSE admission:
o This project installation will be in line with the proposed Listing Admission, which will facilitate development of a portfolio of flexible power plants in the
· This project installation will provide additional revenue opportunity, building upon the revenue potential of Bordesley (6 MW) and the previously announced 9 MW project (see RNS of
The acquisition is an important step toward solidifying Sloane's strategic intent to establish itself as a significant presence in the Reserve Power market, with the ultimate objective of developing a reserve power portfolio in aggregate of 300 MW generating capacity.
Through the acquisition, Sloane will:
· Solidify the creation of a strategic platform from which it can significantly accelerate the development of its project portfolio by developing multiple sites simultaneously;
· Significantly improve and enhance the commercial integrity and investment attractiveness of the Sloane reserve power portfolio by establishing early revenue creating opportunity;
· Enhance the current reserve power portfolio, which includes the near-term Bordesley project, currently under development, and a 9 MW flexible gas power project.
· Mitigate investment risk materially through the planned installation of a synchronous 6 MW gas-powered standby generation facility to be connected to Balance of Plant as well as gas and grid connections.
The HOT provides for an option/lease agreement for a period of 30 years, (commensurate to the project life), to be entered into by
· Sloane being successfully admitted to trading on the London Stock Exchange
· The completion of due diligence by Sloane on the Vendor
· All applicable necessary, regulatory, statutory, board and other approvals or consents having been obtained by the parties
Progress on Admission of Sloane
The admission process, announced on
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.kibo.energy or contact:
| || |
Kibo Energy PLC
Chief Executive Officer
| || |
+27 (0) 83 4408365
JSE Corporate and Designated
+44 (0) 20 7392 1494
ETX Capital Limited
| || |
+44 20 3440 6800
RFC Ambrian Limited
NOMAD on AIM
| || |
+44 (0) 20 7236 1177
St Brides Partners Ltd
Investor and Media Relations
Kibo Energy PLC is a multi-asset,
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project ('MCPP') in
Additionally, the Company has a 60% interest in MAST Energy Developments Limited ('MED'), a private
Corporate and Designated Adviser
Quick facts: Kibo Energy PLC
Market Cap: -
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE