JSE-listed Kibo Energy’s UK-based subsidiary MAST Energy Developments (MED) has signed a five-year power purchase agreement (PPA) with Statkraft Markets for MED’s planned 5 MW gas-fuelled Bordersley Reserve power generation project.
MED plans to commission the project by the end of the first quarter in 2020.
“Finalising a PPA with a global player such as Statkraft is a key deliverable in terms of the overall project management plan at Bordersley to deliver a technically and commercially viable project, thereby solidifying the platform for long-term revenue creation as of 2020.
“With a portfolio exceeding 12 TWh from over 400 customers, Statkraft is a natural partner for us and we are delighted to be working with its team,” said Kibo CEO Louis Coetzee.
Under the terms of the PPA, MED will be responsible for the operation and maintenance of the project, while Statkraft will provide feedstocks (gas) and trade the power generated at Bordersley.