Multi-asset African focused energy company, Kibo Energy PLC, announced last week that it has entered into an agreement with South Africa-based company, Industrial Green Solutions (Pty) Ltd (IGES), to jointly develop a portfolio of Waste to Energy projects in South Africa.
The announcement saw the share price of Kibo Energy rise by more than 7% on Johannesburg Stock Exchange (JSE), and 3% on the London Stock Exchange (LSE) on May 18.
Under the agreement, a Newco will be established in which Kibo will hold a 65% interest and IGES the balance, to deliver the projects. The Newco will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW.
The Agreement, which is subject to the satisfaction of certain conditions, is in line with Kibo’s strategy to integrate renewable energy into its project pipeline, which includes three utility-scale power generation and mining projects.
Use of Pyrolysis technology for Waste to Energy plant
The initial project pipeline for the newco comprises seven projects in place. The projects will utilise Pyrolysis technologies to convert waste non-recyclable plastics to syngas for the generation of energy. The pyrolysis technology to be supplied by a local international technology firm in the form of a waste to energy conversion plant. Syngas to be stored on site and fed into gas engines to generate electrical power; and off takers for all seven projects have been identified with Power Purchase Agreement (PPA) negotiations underway.
“Pyrolysis technology provides a perfect solution to the disposal of plastics in the country, which up until now is high cost and subject to cumbersome procedures and under most recent legislation prohibits the disposal of plastics with a CV (Calorific Value) of more than 20 in landfill facilities. In addition, Newco will enable South African industry to operate independently from the National Utility, Eskom and secure stable power supplies. With the above in mind, we are keen to get started at the earliest opportunity and I look forward to providing further updates on our progress,” said Louis Coetzee, CEO of KIBO.
Kibo Energy appointed Lesedi Nuclear Services (Pty) Ltd as a strategic partner for EPC and Operations and Management services.
“This opportunity to enter the South African waste to energy market in a strategic partnership with Lesedi and IGES, is a win – win for all parties,” added Coetzee.