Ncondezi Energy Limited Project Update (0601Z)
19 May 2021 - 4:00PM
UK Regulatory
TIDMNCCL
RNS Number : 0601Z
Ncondezi Energy Limited
19 May 2021
News Release
Project Update
19 May 2021: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to provide an update on the
integrated Ncondezi 300MW coal fired power project and coal mine in
Tete, Mozambique (the "Project").
Highlights :
-- Ncondezi and their partners continue to await formal feedback
from Electricidade de Moçambique ("EDM") and the Government of
Mozambique following submission of all agreed studies in December
2020
-- Engineering, Procurement and Construction ("EPC") power plant
contract with China Machinery Engineering Corporation ("CMEC")
nearing completion
-- Approval received from relevant parties, including EDM, to
conduct further work on optimised transmission integration
solution, which is expected to further reduce costs
Ncondezi Chief Executive Officer, Hanno Pengilly said:
"Following the submission of all the requested updated studies in
December, as per the agreed timetable, the Company's focus has been
on progressing tariff negotiations with EDM. Whilst we remain
confident the Ncondezi Project offers a uniquely advanced stage
proposal with a competitive solution to Mozambique's energy
generation targets we continue to await formal feedback from EDM
and the Government.
The Company is proactively engaging with both EDM and Government
to reach a conclusion as soon as possible. Agreement on the tariff
will unlock the remaining milestones including; finalisation of the
60% subscription price to be paid by CMEC, the Power Purchase
Agreement, Power Concession Agreement and Financial Close.
In the meantime, we continue to progress other parallel
workstreams including signing of the EPC agreement contract for the
power plant with CMEC. This is the largest construction contract
for the Project and we are in the final stages of completing it
ahead of signing.
In addition, we have obtained all necessary approvals, including
from EDM to further develop an optimised transmission integration
solution identified in the 2020 Transmission Integration Study.
This has strong potential to reduce the transmission capex, further
enhancing the Project's competitive offering. This work is not
expected to impact tariff negotiations as it will be completed in
parallel to them.
We believe the Project is in a very strong position despite
frustrating delays to the completion of the tariff negotiations. We
look forward to providing further updates in due course."
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
Ncondezi Energy Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited Scott Mathieson, Edward Thomas, +44 (0) 20 3100
NOMAD & Joint Broker Kane Collings 2000
Novum Securities
Limited +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
Pimlico Advisory
Ltd +44 (0) 777 56 55
Investor Relations Elizabeth Johnson 927
About Ncondezi Energy
Ncondezi is an African power development company with an
advanced staged, integrated 300MW thermal coal power plant and mine
project located in the Tete Province, Northern Mozambique.
The Company is focused on providing reliable, affordable and
accessible baseload energy to Mozambique and secure against the
effects of water drought and intermittency of new renewables. This
project supports Mozambique's energy strategy of universal
electricity access by 2030. According to the World Bank, only 30%
of the Mozambican population had access to energy in 2017. The
Ncondezi Project would provide 300MW of reliable and available
power helping to close the infrastructure gap of the region and
serving as a catalyst for economic development.
The power plant will be designed to be equipped with
state-of-the-art emissions controls technologies that will reduce
local air pollutants, minimizing the plant's impact on the
environment and ensuring its compliance with the most stringent
emission standards
In 2019, the Company entered the Commercial and Industrial
("C&I") renewable and battery storage sector and in October
2019 announced its first investment in an off grid solar battery
project. The Company has also secured the right to fund a US$5.5m
C&I project development pipeline in Mozambique through a
Relationship Agreement with a C&I developer. The move into the
C&I solar and battery storage sector offers a significant
opportunity for the Company to complement the existing large-scale
baseload power project and access near-term low-risk annuity income
streams which have significant growth potential.
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