Kibo Energy PLC to dispose coal-based power projects as it refocuses on renewables opportunities
The company recently launched a review to explore the best ways to extract the substantial value it has created in coal-fuelled projects
In line with its refocused strategy, Kibo said it will now proceed with a previously announced transaction to jointly develop a portfolio of waste-to-energy projects in South Africa following positive due diligence results. The transaction, announced in May, will see it take a majority stake in a project that will convert plastic waste into syngas that will in-turn fire gas engines to generate electrical power.
The company said that its South Africa deal will provide the core of its new business, though it anticipates further investments and/or acquisitions in the renewable sector.
Formerly a developer of coal mining assets in Botswana, the company now sees itself as a ‘multi-asset, Africa & UK focused energy company’.
In October 2019, the company launched a venture to build flexible power plants in the UK, focused on small-scale reserve power generation. It presently also retains interests in ‘clean coal’ fuelled power projects in Tanzania, Botswana, and Mozambique.
Kibo believes such projects will still be necessary to support Africa’s rapidly increasing energy needs over a decades long transitional period. Nevertheless, it has decided to dispose its coal related assets and advisors will be appointed to oversee the sale.
“Since early 2020 and the onset of the COVID-19 global pandemic, the renewable energy drive has gathered pace with governments worldwide pledging to reduce the reliance on carbon fuels within their energy strategies,” the company said.
“With this background, the company undertook a review of operations to establish the best way to extract the substantial value it had created in its coal-fuelled projects for shareholders.”
Read More: Kibo Energy PLC to dispose coal-based power projects as it refocuses on renewables opportunities