JSE- and Aim-listed Kibo Energy’s subsidiary MAST Energy Developments (MED) has signed a joint development agreement (JDA) with AB Impianti, a subsidiary of heat and power generation solutions company AB Group, to assist in the development of selected flexible power plants in the UK.
The JDA provides access to end-to-end engineering, procurement and construction solutions, with MED gaining access to AB’s construction and engineering capacity and capability.
Additionally, the JDA includes a comprehensive funding solution for the construction and commissioning of all sites that are ultimately approved for development by AB.
“Executing a comprehensive JDA with a global player such as AB, is a key deliverable in terms of the overall development plan for MED. More specifically, it is a critical step towards securing the delivery of a fully operational site at Bordersley by the end of the first quarter next year and the associated first revenue generation for the company.
“There is a roll-out plan for MED and we remain both supportive and excited on the delivery of further plants, widening our international partnership network and delivery of energy solutions in the UK and Africa,” Kibo CEO Louis Coetzee said on Wednesday.
The funding solution that forms part of the JDA provides Bordersley and MED with a unique opportunity to potentially have all sites approved for development, fully funded from the outset.
This provides an opportunity to fast-track the parallel development of sites and simultaneously de-risk MED’s overall development strategy.
“I am delighted with this arrangement which will see AB and MED design, manufacture and deliver world-class projects in this critical sector of the UK’s power generation market.
“With an ever-increasing push for energy efficiency, renewable energy technology and growing energy digitalisation, this partnership will help to accelerate the implementation of local embedded power generation that the UK desperately needs," said AB regional sales manager Gary Collins.
Meanwhile, negotiations between Kibo and Vale Mozambique regarding the finalisation of a power purchase agreement and coal supply agreements for the Benga power plant project, are continuing.