Kibo renews MoU with Tanzanian utility
Aim-listed Kibo Energy has signed a renewed memorandum of understanding (MoU) with Tanzania Electric Supply Company (Tanesco) in relation to the development of the Mbeya power project.
The renewed MoU is an agreement between the parties on the process to agree and conclude a power purchase agreement (PPA) between Tanesco and Mbeya Power, a subsidiary of Kibo.
The objective of this MoU is to establish a general framework of collaboration and cooperation to enable the design, development, financing, construction, commissioning and operation of the Mbeya project and its associated infrastructure.
The MoU sets out clear guidelines, deliverables and timelines for the conclusion of a PPA and related implementation agreements.
The Mbeya project is Kibo’s initial flagship energy project, based in Tanzania, where the company plans to build a 300 MW steam-powered power station in alignment with the Tanzanian Power System Master Plan.
The renewed MoU provides Kibo with the opportunity to reintroduce the project into its development plans and specifically alongside the company’s new biofuel initiative.
“We are delighted to see this robust flagship project revived. The renewed MoU provides Kibo with an exciting opportunity to resume cooperation with Tanesco in making a contribution towards addressing Tanzania’s extensive and urgent energy needs.
“We are particularly excited to embark on this process and to also introduce our biofuel approach for evaluation as a possible substitute fuel source for the project, which if proven feasible, will convert the project into a carbon neutral project which in itself could have far-reaching implications for similar utility-scale projects in the Southern Africa region,” comments Kibo Energy CEO Louis Coetzee.
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