Kibo Energy has entered an agreement with South Africa-based Industrial Green Solutions to jointly develop a portfolio of waste-to-energy projects in South Africa with an initial target of generating more than 50 megawatts of electricity for sale to industrial users.
The Agreement, which is subject to the satisfaction of certain conditions, is in line with Kibo’s strategy to integrate renewable energy into its project pipeline, which includes three utility-scale power generation and mining projects.
Louis Coetzee, CEO of KIBO says:
“This opportunity to enter the South African waste to energy market in strategic partnership with Lesedi and IGES, is a win – win for all parties.
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“For Kibo, this Agreement is in line with our strategy to integrate sustainable environmentally friendly energy generation into our portfolio, which could shortly include waste to energy projects in the UK currently the subject of a due diligence investigation.
“The 50 MW project pipeline also positions Kibo squarely in the new and exciting renewable energy industry in South Africa and places us firmly on a programme to production and revenue in the short to medium term.
“For IGES, the company gains a partner in Kibo with a track record not only in project development but also in project finance. For South Africa, the Pyrolysis technology provides a perfect solution to the disposal of plastics in the country, which up until now is high cost and subject to cumbersome procedures and under most recent legislation prohibits the disposal of plastics with a CV (Calorific Value) of more than 20 in landfill facilities.
“In addition, Newco will enable South African industry to operate independently from the National Utility, Eskom and secure stable power supplies. With the above in mind, we are keen to get started at the earliest opportunity and I look forward to providing further updates on our progress.”
- Under the terms of the Agreement, Kibo will own 65% of Newco Energy, which will hold the Waste to Energy Project Portfolio, with IGES holding 35%
- Newco will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50 MW
Initial Project Pipeline comprise seven projects in place, and will utilise Pyrolysis technologies to convert waste non-recyclable plastics to syngas for the generation of energy:
- Pyrolysis technology to be supplied by a local international technology firm in the form of a waste to energy conversion plant;
- Syngas to be stored on site and fed into gas engines to generate electrical power; and
- Off takers for all seven projects have been identified with PPA negotiations underway
Project 1 – Most Advanced in Project Portfolio and Involves the Development, Construction and Operation of a c. 8 MW Base Load Waste to Energy Generation facility:
- MOU for the supply of energy signed with industrial client in Centurion (Pretoria, South Africa) – 10-year “Take or Pay” PPA negotiated subject to independent review;
- Fuel feedstock supply agreement signed with waste management operator for 100% of project’s fuel requirement – intention to operate from a 9 – 12-month stockpile;
- Land acquisition and waste licensing completed, air emissions license submitted and grid connection approval process underway;
- Capacity to be scaled up from c. 2 MW to 8 MW, in 4 x 2 MW phases over three years;
- Project development duration for first phase of 2 MW expected to be no longer than 16 months including construction;
- Kibo will fund NEWCO, commencing with an amount of R11,145,000 as an Equity Loan to Newco for the development of this first project; and
- Kibo will be developing the project portfolio with Lesedi Nuclear Services as strategic partner for EPC and Operations and Management services