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Africa|Construction|Electrical|Energy|Engineering|Engines|Environment|Gas|Industrial|Nuclear|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Services|Sustainable|Technology|Waste|Waste Management|Solutions|Waste|Operations

Kibo, IGES to develop portfolio of waste-to-energy projects in South Africa

18th May 2021

By: Chanel de Bruyn

Creamer Media Senior Deputy Editor Online


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The share price of JSE- and Aim-listed Kibo Energy rose by more than 7% and 3% on the JSE and LSE, respectively, on May 18, after the company announced that it had entered into an agreement with South Africa-based Industrial Green Solutions (IGES) to jointly develop a series of waste-to-energy projects in South Africa.

The companies have established Newco, in which Kibo will hold a 65% interest and IGES the balance, to deliver the projects. The parties have set an initial target of generating more than 50 MW of electricity for sale to industrial users.

Newco will start with the development of a phased 8 MW project for an industrial client, which will be followed by six more projects at other sites.

Kibo will fund Newco, starting with an R11.15-million, or £560 000, equity loan for the development of the first project.

Thereafter, Newco’s approved budget will be funded through a combination of various standard commercial funding options, repayable from free cash generated by Newco from its projects.

Kibo has partnered with Lesedi Nuclear Services as a strategic partner for engineering, procurement and construction and operations and management services for the portfolio of projects.

The projects will convert plastic waste, to be provided by waste disposal operators, into syngas using a pyrolysis plant. The syngas will be stored on site and fed into gas engines to generate electrical power.

“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 environment-friendly energy generation into our portfolio.

"The 50 MW 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," Kibo CEO Louis Coetzee commented.

He added that IGES would benefit from gaining a partner with a record not only in project development but also in project finance.

Further, he said, the benefits for South Africa include that the pyrolysis technology provides a solution for dealing with plastic waste.

"In addition, Newco will enable South African industry to operate independently from power utility Eskom and secure stable power supplies," Coetzee noted.

Meanwhile, Kibo pointed out that the first project would be developed in four phases of 2 MW each, with the first 2 MW phase to be completed within 16 months.

A ten-year take-or-pay power purchase agreement has been signed with an industrial customer in Centurion, while a fuel feedstock supply agreement has been signed with a waste management operator to supply all of the project's fuel requirement.

Edited by Creamer Media Reporter



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