Shares of Kibo Energy are on the rise after the company said it has entered into an agreement with South Africa-based Industrial Green Solutions Ltd (IGES) to develop a portfolio of Waste to Energy projects in South Africa.
The agreement will see Kibo 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, followed by six other projects at different sites, to a total generation of up to 50MW.
The initial project pipeline has seven projects in place and will use Pyrolysis technologies to convert waste non-recyclable plastics to syngas to generate energy.Â
The Pyrolysis technology to be supplied by a local international technology firm, while the syngas will be stored on-site and fed into gas engines to generate electrical power.Â
Off takers for all seven projects have been identified with Power Purchase Agreement negotiations underway.
Louis Coetzee, CEO of KIBO, said:Â “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. For Kibo, today's 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.Â
“The 50MW 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.Â
“For IGES, the company gains a partner in Kibo with a track record not only in project development but also in project finance.”
Energy company Kibo's share price is currently trading 2.97% above Monday's close at 0.299p.
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