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Kibo Energy boosted as it completes DFS at Benga power plant ahead of schedule

The energy firm said in an update that a final review of the DFS was now in progress, with negotiations over coal purchase agreements with producers at an “advanced stage”

Coal
Kibo owns 65% of the 150-300 megawatt coal-fired Benga development

Kibo Energy PLC (LON:KIBO) shares were boosted in early deals on Thursday after it completed a definitive feasibility study (DFS) at its Benga power plant in Mozambique ahead of schedule.

The energy firm said in an update that a final review of the DFS was now in progress, with negotiations over coal purchase agreements (CPA) with producers at an “advanced stage”.

READ: Kibo Energy explains rationale behind recent Sanderson transaction

The developments follow an update in January when the company said the DFS was progressing faster than planned and the priority was now to sign agreements with coal suppliers and electricity buyers.

Kibo owns 65% of the 150-300 megawatt coal-fired power Benga development with local power group Termoeléctrica its partner.

The firm added that a meeting with EDM, Mozambique’s state-owned electricity company, was planned for April to present the DFS and negotiate a power purchase agreement (PPA) for electricity generated from the plant, adding that advanced PPA discussions were also ongoing with private providers.

The company was also assessing the integration of renewable technologies at the plant.

Louis Coetzee, chief executive of Kibo, said the PPA discussions and the DFS technical work would allow the company to “align the power station design accurately” with eh requirements of the power purchasers.

“We are confident that this, combined with Kibo's focus on clean-burning coal-fired power generation, will put the Company on the forefront of development in this regard."

Shares were up 8.9% at 0.79p.

Quick facts: Kibo Energy PLC

Price: 0.4284 GBX

LSE:KIBO
Market: LSE
Market Cap: £5.34 m
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