Kibo Power Purchase Agreement on SA waste-to-energy project extended to 20 years
Kibo Energy PLC, the renewable energy focused development company, announced that it has extended to 20 years its conditional 10-year take-or-pay Power Purchase Agreement ('PPA'), first announced in the Company's RNS dated 14 February 2022. The PPA outlines the construction, commissioning and operation of a 2.7 MW plastic-to-syngas power plant to generate baseload electricity for an industrial business park developer (the 'Client') in Gauteng, South Africa (the 'Project'). The Project is the Company's first under its joint venture, Sustineri Energy, in which Kibo Energy PLC holds 65% and Industrial Green Energy Solutions Pty Ltd ('IGES') holds the balance of 35%.
The extended term period to 20 years will improve the already compelling Project highlights, as per the Company's RNS dated 14 February 2022, including:
- Strong financials: An increase in the projected EBITDA from c. ZAR 388 million to c. ZAR 953 million, of which an amount of c. ZAR 619 million is attributable to the Company;
- Improved Internal Rate of Return ('IRR'): An increased projected IRR of 15-18%, up from 11-14%; and
- Commencement of construction and commissioning: The Construction Phase is scheduled to commence during Q1 2023 with project commissioning 11 to 14 months thereafter.
