Kibo Energy PLC (LON:KIBO) said an independent Base Case Financial Model has been completed for its 65%-owned Benga Power Plant in Mozambique, with initial findings demonstrating the economic robustness and viability of the project.
The AIM-listed firm also noted that internal research on renewable energy and storage options indicate promising opportunities for optimisation in terms of plant availability and limiting greenhouse gas emissions.
The company added that it continues to advance its strategy focused on constructing and operating a 150-300 MW coal-fired power plant at Benga with fuel provided by local coal producers.
It pointed out that talks over a Coal Supply Agreement term sheet with a supplier, and over a Power Purchase Agreement term sheet with a private off-taker for 35-40% of generation capacity are both advancing.
Louis Coetzee, Kibo Energy CEO commented, "The stars are aligning for our major new energy project in Mozambique, Benga, as we continue to advance in its development.
“Whilst in the past, we have labelled the Project as a thermal coal power project, in reality, it could encompass much more, as our own research on renewable energy and storage options indicate.
“However, our current priority is to complete term sheets for coal supply and power purchase agreements; I am pleased to say that discussions are progressing well for both. I look forward to updating shareholders on further progress soon."