Africa focused energy company, Kibo Energy, has signed a binding term sheet with Baobab Resources to supply circa 200 MW of energy to its Tete Steel and Vanadium (TSV) project in Mozambique.
Mozambique – Under the terms of the agreement, which is valid until 30 September 2020 (or such extended date as may be agreed upon in writing between the parties), Baobab Resources agrees to exclusively deal and negotiate with Kibo with regard to entering into the proposed PPA.
Located approximately 36km away from Kibo Energy’s Benga power plant project, TSV is recognised as a key development project in Mozambique
Louis Coetzee, CEO of Kibo Energy, said: “We are delighted to have secured this strategically important agreement with Baobab Resources. This PPA will be one of a number of supply agreements we are targeting for Benga, in line with our commitment to creating reliable, sustainable and affordable electricity in Mozambique and we look forward to providing further updates in due course as these agreements progress.
“It is envisaged that the c. 200MW requirement will be developed as part of the existing Benga power project, and talks are currently underway with our JV-partners in Benga, to determine whether the latest addition to the Benga portfolio will have any impact on the economic interest of each JV partner, given Kibo Energy’s added efforts in increasing the utilisation of Benga.”
Key development project
Kibo Energy emains focused on developing the Benga Power Plant Project in Mozambique with its joint venture partner, Termoeléctrica de Benga S.A, which will now comprise a thermal power plant with min capacity of 350 MW, as well as planned renewable energy projects.
Located approximately 36 km away from Benga, TSV is being developed to produce 500 000 tonnes of construction steel per annum and is construction-ready with all licences, concessions, and agreements in place. This is recognised as a key development project in Mozambique and is set to be the anchor industry for the Revuboe Industrial Free Zone, Mozambique’s newest and largest industrial zone.