Dual-listed Kibo Energy’s 60%-owned subsidiary, MAST Energy Developments (MED), has completed its acquisition of Bordersley Power, a special purpose vehicle (SPV) that will hold a 5 MW gas-fuelled power generation plant targeting commercial commissioning at the end of the first quarter of 2020.
The SPV was acquired for €175 000 in cash and the reimbursement to the SPV vendor of €2 000 in costs related to the gas connection offer.
Kibo CEO Louis Coetzee and Kibo CFO Pieter Krügel will be appointed as directors of Bordersley, while the existing directors and officers of Bordersley will resign.
“As we progress Kibo along its journey into the energy market, we discover many opportunities aligned with our strategy,” Coetzee said in a statement issued on Friday.
He highlighted that this initial strategic acquisition made by MED was a key milestone as it advanced Kibo’s strategy of becoming a key player in the UK flexible power generation market.
Preparations, including the appointment of an engineering, procurement and construction (EPC) contractor and owner’s engineer, as well as commercial discussions, were well under way ahead of MED’s target of first operations, Coetzee informed.
As part of the Bordersley development, Clarke Energy, a multinational specialist in distributed power generation solutions, has been selected as the preferred EPC contractor; a proposal is being evaluated and contract negotiations are under way.
Additionally, contract negotiations are under way with Encora Energy, which has been selected as the preferred owner’s engineer, and Statkraft Markets for a power purchase agreement, regarding the implementation and execution of MED’s desired trading and optimisation strategy.