TIDMKIBO
RNS Number : 9903L
Kibo Energy PLC
16 September 2021
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 16 September 2021
Kibo Energy PLC ('Kibo' or the 'Company')
Strategic Investment in UK Waste to Energy Project
Kibo Energy PLC, the renewable energy focused development
company, is pleased to announce that it has signed a Heads of Terms
(the "Agreement") with EQTEC plc (AIM: EQT) ("EQTEC"), a
world-leading gasification solutions company, to acquire a 54.54%
interest in the proposed 25 MWe Billingham waste gasification and
power plant (the "Project") at Haverton Hill, Teesside, UK.
Highlights
-- It is expected that Kibo will acquire a 54.54% equity stake in the Project SPV;
-- EQTEC will retain 45.46% equity in the Project SPV;
-- The Project is at advanced stages of development with a
concept design for the full plant produced, planning permission
approved, grid connection offer secured & technical due
diligence with technology insurance providers completed;
-- The Project is expected to annually process 200,000 metric
tonnes of non-recyclable everyday Municipal Solid Waste into 25 Mwe
of green electricity, enough to power 50,000 homes;
-- Kibo's initial funding contribution will be GBP3 million paid
as an equity subscription , plus convertible shareholder loan
facilities in accordance with the Agreement.
-- In accordance with the Agreement, Kibo will have the option
to provide additional convertible shareholder loan facilities to
the Project SPV and/or convert future project development fees into
further equity in the Project in the future;
-- Project rights, held by the Project SPV, include all
technology license agreements, all equipment supply and maintenance
agreements with EQTEC and all rights to the site under the existing
agreements with Scott Bros. Enterprises Limited;
-- Following completion of the transaction, EQTEC and Kibo will
invoice for their respective project development services to the
Project SPV;
-- EQTEC will remain as the lead development manager on the
Project, providing the design and core Advanced Gasification
Technology and subsequently retaining the maintenance portion of
the O&M contract upon commissioning.
Further announcements regarding the finalisation of binding
transaction documentation will be made in due course.
Louis Coetzee, CEO of KIBO said, "Kibo's commitment to the EQTEC
project in Billingham is clear and marks a key milestone in our new
corporate strategy to solely invest in commercially-sound,
sustainable clean energy projects. Our present focus is primarily
on projects in the UK and Africa that will realise their value in
the near term, within 18-months. We are very pleased to have joined
forces with leading player EQTEC to invest in and develop this
plant further, and additionally see potential for us to roll out
its Advanced Gasification Technology to our Africa projects and the
Africa market in the future. The acquisition aligns perfectly with
Kibo's existing corporate strategy and more specifically with our
current UK project focus. The Company is also very pleased with the
progress it has already made to secure the funding required for
this transaction."
David Palumbo, CEO of EQTEC, said, "In the UK, our focus is on
developing and commissioning the country's first three
commercially-successful gasification plants, which will convert
local municipal waste into clean energy for local communities.
We are delighted to have Kibo as joint investor and developer in
one of these projects, the Billingham RDF-to-energy project. Their
confidence in the potential that this plant has for the local area,
their commitment to investing in clean energy projects and
technologies, and our shared approach to how large infrastructure
projects like this should be successfully project managed, will
ensure our skillsets are combined to best achieve the objectives
for Billingham. We also believe that this partnership with Kibo
could evolve and expand into other projects and markets.
We know there is a better, cleaner and more efficient way to use
the municipal waste and convert it into value, sustainably, rather
than sending it to be incinerated or buried at landfill sites. We
look forward to driving this project forward towards achieving that
goal."
The Project
Located at Haverton Hill, Teesside, UK, the proposed waste
gasification and power plant will process 200,000 metric tonnes of
non-recyclable everyday Municipal Solid Waste (MSW) annually. The
waste will be sorted and subject to basic processing treatment
which will be converted into Refused Derived Fuel - otherwise
destined for landfill or incineration - into 25 MWe of green
electricity, enough to power 50,000 homes. In the UK, the amount of
waste collected for energy conversion has jumped 400% since 2000
and peaked at 11.45 million metric tons in 2019/20.
The Transaction
The Company continues to advance its strategy focused on rapidly
growing its renewable energy portfolio and capitalising on what it
believes is a compelling and sustainable growth story - delivering
long term value for shareholders. In line with this, the Company
has signed an Agreement with EQTEC for the proposed up to 25 MWe
Billingham waste gasification and power plant.
Under the terms of the Agreement, it is expected that Kibo will
acquire a 54.54% equity stake in the Project SPV, with all its
rights and obligations for the project development, build and
operation. Kibo's initial funding contribution will be GBP3 million
paid as an equity subscription, plus convertible shareholder loan
facilities in accordance with the Agreement.
To ensure continuity and operational focus EQTEC will continue
to lead the development of the Project SPV, Haverton WTV Limited
("Haverton"), providing development strategy and services for
integrated planning, commercial negotiation, funding, and delivery
readiness. Kibo's investment and participation will accelerate
development progress, support pursuit of a wider range of
commercial opportunities and de-risk the subsequent construction
and commissioning phase.
Project rights include all technology license agreements, all
equipment supply and maintenance agreements with EQTEC and all
rights to the site under the existing agreements with Scott Bros.
Enterprises Limited. During the Agreement, EQTEC and Kibo will
invoice for their respective project development services to the
Project SPV. EQTEC will continue to provide the design and core
advance gasification technology and will remain responsible for the
maintenance portion of the O&M contract upon commissioning.
EQTEC recently provided an update on the Project, including that
the development and associated engineering work, led by an EQTEC
team, has produced a detailed design for the core gasification
process and equipment and a concept design for the full plant (see
EQTEC RNS announcement dated 19 July 2021). In July, reviews with
potential funders, including Kibo, were held as planned and the
Project team is currently selecting delivery partners, including
Tier 1 EPC companies.
EQTEC has already secured a grid connection offer for the
Project and completed technical due diligence with technology
insurance providers. Additionally, the Project SPV previously
signed a conditional Land Purchase Agreement for the land on which
the proposed plant will be constructed and operate. The Project has
existing planning permission for advanced thermal conversion and
EQTEC's revised planning approval both improves the economics of
the Project and reduces the size of the footprint of the plant.
About EQTEC plc ( https://eqtec.com )
As one of the world's most experienced gasification technology
and engineering companies, with a growing track record of
delivering operational and commercial success for transforming
waste-to-energy through best-in-class technology innovation,
engineering and project development , EQTEC brings together design
innovation, project delivery discipline and solid commercial
experience to add momentum to the global energy transition. EQTEC's
proven, proprietary and patented technology is at the centre of
clean energy projects, sourcing local waste, championing local
businesses, creating local jobs and supporting the transition to
localised, decentralised and resilient energy systems.
EQTEC designs, supplies and builds advanced gasification
facilities in the UK, EU and US, with highly efficient equipment
that is modular and scalable from 1MW to 30MW. EQTEC's versatile
solutions process over 50 varieties of feedstock, including
forestry wood waste, vegetation and other agricultural waste from
farmers, industrial waste and sludge from factories and municipal
waste, all with no hazardous or toxic emissions . EQTEC's solutions
produce a pure, high-quality synthesis gas ("syngas") that can be
used for the widest range of applications, including the generation
of electricity and heat, production of synthetic natural gas
(through methanation) or biofuels (through Fischer-Tropsch,
gas-to-liquid processing) and reforming of hydrogen.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
S
For further information please visit www.kibo.energy or
contact:
Louis Coetzee Kibo Energy PLC info@kibo .energy
Chief Executive Officer
River Group
Andreas Lianos JSE Corporate and Designated Adviser +357 99 53 1107
--------------------------------------- ----------------------------
Hybridan LLP
Claire Noyce Broker +44 (0) 20 3764 2341
--------------------------------------- ----------------------------
Bhavesh Patel RFC Ambrian Ltd
Stephen Allen Nomad on AIM +44 20 3440 6800
--------------------------------------- ----------------------------
Isabel de Salis St Brides Partners Ltd info@stbridespartners.co.uk
Oonagh Reidy Investor & Media Relations Adviser
--------------------------------------- ----------------------------
Johannesburg
16 September 2021
Corporate and Designated Adviser
River Group
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCDQLBFFKLXBBV
(END) Dow Jones Newswires
September 16, 2021 03:44 ET (07:44 GMT)
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Feb 2024 to Mar 2024
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Mar 2023 to Mar 2024