AltX- and Aim-listed Kibo Energy’s share price on the JSE rose by more than 9% on August 25, after announcing that it had started a request for proposals (RFP) process to investigate the feasibility of replacing fossil fuel (coal) with renewable biofuel.

This followed an extensive review of the company’s operations and assets, with the company planning to dispose of all its coal mining assets, but still retain the associated energy generation projects through the introduction of innovative biofuel technology.

Kibo noted that it had been doing extensive work on identifying innovative biofuel technology in recent months.

Through the RFP process, Kibo intends to appoint an experienced international biomass and biofuel consultant to determine the economic and technical viability of using the specific biomass (or bio-coal) technology as a feasible fuel source at industrial scale, to fuel the company’s existing and already developed utility-scale power projects.

The feasibility studies will investigate whether sufficient biomass can be sustainably produced – meaning economically, environmentally and socially viable – and supplied as fuel for a 300 MW power plant over a 20- to 25-year power purchase agreement period.

The biofuel technology, which will be the subject of the above referred investigation, has already been subjected to extensive bench testing and has thus far delivered positive results in all tests performed, the company said.

“By undertaking this evidence-based process, we believe we should be able to replace the traditional coal-mining activity with a 100% renewable energy source. Work completed to date indicates that our existing coal-fired power plants can be easily adapted to accept the new renewable fuel solution with only minor design changes on the energy generation side,” Kibo CEO Louis Coetzee explained.

“Pilot plant and lab tests have shown very positive results in terms of delivering bio-coal at a quality and quantity specification that is comparable and, in most instances, better than typical fossil thermal coal.

“Should the full investigation into the process of replacing coal with bio-coal deliver the expected positive results, our existing coal-fired power plant projects will be converted into renewable baseload energy projects that are carbon neutral and in line with Kibo’s sustainable, renewable energy strategy,” he adds.

Kibo has in recent years shifted its focus towards clean energy solutions, including waste-to-energy and energy storage projects, but it still owns coal mining assets.

In its annual report for 2021, the company listed its coal interests as including the Mbeya coal-to-power project, in Tanzania, and the Mabesekwa Coal Independent Power Project (MCIPP), in Botswana.

The Mbeya coal-to-power project comprises a coal mine with the potential to produce 1.5-million tonnes a year of coal and a planned 300 MW mine-mouth thermal power station.

The MCIPP comprises a 761-million-tonne coal resource.

Kibo initially held an 85% interest in the MCIPP through its Kibo Energy Botswana (KEB) subsidiary, with Shumba Energy holding the balance. However, Kibo has decreased its share in KEB to 35%, with Shumba now the controlling shareholder.

Kibo and Shumba had previously considered developing a 300 MW integrated power project at Mabesekwa.

Further, in Mozambique, Kibo had, in recent years, been working with Mozambique energy utility Electricidade de Moçambique on the proposed development of a 150 MW coal-fired power plant, called the Benga power plant project.