Ncondezi Energy Ltd (AIM:NCCL, OTC:NCDZF)said it received an updated land use agreement from the Mozambique government concerning its project in Tete, Mozambique.
The power development company said the Direito do Uso e Aproveitamento da Terra (DUAT) agreement grants exclusive use for solar power plant operations at the preferred site.
“This is a critical permitting requirement for the project, reflecting both strong local support and the expedited process we are executing since announcing the positive feasibility study last October,” said Ncondezi chief executive Hanno Pengilly.
The company, which is developing a 300MW solar photovoltaic and battery energy storage system in Mozambique, said the DUAT covers 950 hectares, sufficient for up to 500MW.
“The Solar Project is strategically positioned from a transmission perspective, having access to existing grid networks with available capacity and multiple evacuation paths in Mozambique and the wider Southern African region,” Pengilly added.
Just before Christmas, Ncondezi signed a master services agreement with Synergy Consulting to provide financial and transaction advisory services for its 300MW solar project in Mozambique.
The agreement covered potential advisory services to accelerate the project up to financial close.