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Kibo Energy has announced that its primary focus going forward will be on renewable energy opportunities.

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In line with its refocused strategy centred on sustainable renewable energy solutions and following the positive results of an extensive due diligence process regarding the agreement with South Africa-based Industrial Green Solutions (IGES), the company will now proceed to conclude the transaction to jointly develop a portfolio of Waste to Energy projects in South Africa.

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In addition, the company intends to appoint specialist advisors to assist the company in developing and 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.

It will be the objective of this disposal strategy to ensure that maximum value is realised from these projects, in which significant value was created over several years.

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Louis Coetzee, CEO of KIBO said:

“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.

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“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.

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Notwithstanding our firm belief that clean coal 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.”