Kibo subsidiary to acquire UK gas-fuelled power plant project

22nd May 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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Aim- and JSE-listed Kibo Energy’s 60% subsidiary MAST Energy Developments (MED) has executed an agreement to acquire Bordersley Power Limited (BPL) from Balance Power Projects.

BPL – a special purpose vehicle – will comprise a 5 MW gas-fuelled power generation plant, which will be supported by an option to lease the land that comprises the project site, a grid connection offer and a gas connection offer, both of which will be novated to Bordersley.

Additionally, Kibo CEO Louis Coetzee and CFO Pieter Krügel will be appointed as directors of Bordersley, with existing directors and officers of Bordersley to resign upon completion of the acquisition.

Meanwhile, multinational Clarke Energy has been selected as the preferred engineering, procurement and construction contractor, while peaking power generation construction specialist Encora Energy has been selected as the preferred owner's engineer for the project.

The project is expected to cost about £3.6-million to develop.

Kibo and MED are targeting commercial commissioning of the Bordersley site late in the fourth quarter of this year or early next year.

Coetzee said in a statement this week that this initial strategic acquisition by MED was a key milestone as it advances its strategy of becoming a major player in the UK flexible power generation market.

MED continues to focus on the development of its pipeline of peaking power sites, with its emphasis shifting from 33 kVA sites to 11 kVA sites. This is expected to provide superior returns in the medium to long term with concomitant lower costs.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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