Kibo Energy to construct and operate a waste-to-energy plant in South Africa

Kibo Energy PLC on Monday said it had secured a 10-year clean energy power purchase deal on a waste-to-energy plant in South Africa for an unnamed client.

Kibo is a Johannesburg and London-listed energy project firm with a focus on Africa and the United Kingdom. On Monday morning, Kibo shares were unchanged at ZAR 0.06 per share in Johannesburg but were up 12% to 0.18 pence per share in London.

Kibo has signed a 10-year take-or-pay conditional power purchase deal with a 2.7 megawatt plastic-to-syngas power plant in Gauteng to provide baseload electricity.

The project is the first under Sustineri Energy, a joint venture in which Kibo owns 65 percent, and Centurion, Pretoria-based Industrial Green Energy Solutions Pty Ltd owns the remaining 35 percent.

The joint venture estimates ZAR 388 million in earnings before interest, tax, depreciation, and amortization throughout the project's life, of which Kibo will net ZAR 252 million, according to an optimized financial model.

The joint venture will build, commission, and run the plant for an undisclosed industrial business park developer.

The client will receive cleaner electricity as a result of the project's use of a high-temperature pyrolysis process, in which non-recyclable plastics are thermally degraded to produce high-quality syngas, which will then be fed into gas engines to generate both electricity and heat energy.

Following an exhaustive evaluation of its operations, Kibo Energy PLC recently announced that it will refocus its business towards renewable energy options.

Following favorable due diligence results, Kibo said it will move through with a previously announced transaction to jointly develop a portfolio of waste-to-energy projects in South Africa, in accordance with its refocused strategy.

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