Dual-listed renewable energy developer Kibo Energy has made notable progress on various projects since announcing its refocused renewable energy strategy in 2021, and expects to see several new revenue streams realise in the next 12 to 24 months.

However, the company has struggled to exit coal by disposing all of its assets, which are based in Southern and East Africa.

Kibo explains that its coal asset sales have progressed slowly, owing to funding for the construction of new coal mines not being readily available for buyers, especially for the thermal coal deposits.

Although thermal coal is in demand at the moment, it does not command a premium price, which makes such deposits less attractive for exporters.

It also does not bode well that all the Kibo coal assets are situated in remote areas with little to no existing infrastructure, and are based far away from ports for export – more than 800 km, with no significant local coal market opportunities.

The company, nevertheless, remains committed to announcing a definitive term sheet related to the disposal of its coal assets.

Meanwhile, after determining the technical feasibility of the production of bio-coal from biomass, Kibo is assessing the commercial viability of this process under a variety of industrial-scale applications. The company is undertaking both due diligence investigations and participating in advanced discussions on several projects.

Apart from potentially providing a sustainable fuel source for the 300 MW Mbeya biomass power project, in Tanzania, as well as the two remaining 300 MW projects in the Kibo portfolio, there is an opportunity to source and/or cultivate biomass to produce bio-coal at strategically placed biofuel production plants for various leading international companies in the manufacturing industry.

Kibo is working closely with these manufacturers, a number of which are based in Southern Africa, to complete feasibility studies at identified operating plants. Kibo aims to help manufacturers lower their dependence on coal and opt for biofuel instead.

WASTE-TO-ENERGY

On the waste-to-energy front, Kibo has started with an optimisation and integration study into the production of synthetic oil from non-recyclable plastic waste at the plastic-to-syngas project, Sustineri, in South Africa. This will add an additional revenue stream to the project.

The decision to pursue the production of synthetic oil as part of Phase 1 of the project is expected to have a positive impact on the project’s profitability and provides the company with the opportunity to generate revenue much earlier than initially anticipated. It also provides better de-risking for the project and the opportunity to build and commission a pyrolysis plant and related infrastructure earlier, thereby facilitating early revenue.

Kibo expects to conclude the technical part of the optimisation study by the end of the first quarter and reach financial close on the Sutineri project by the third quarter. Likewise, Kibo expects to reach financial close during the second or third quarter on the UK-based Southport waste-to-energy project.

Other power projects in the company’s UK-based Mast Energy Developments business are progressing to financial close and last approvals. It is only the Mbeya project where financial close can only be achieved in 2024.

Moreover, Kibo is planning to spin out its waste-to-energy and biofuel projects to be held in a new Aim-listed vehicle called Ultimate Sustainable Energy, which should list during the second quarter of the year.

The company still plans on entering the long-duration energy storage market, comprising battery energy storage systems, and will make announcements in this regard when appropriate.

Kibo CEO Louis Coetzee says the company is sufficiently funded through its existing financing facilities while it pursues various funding opportunities for projects, including equity, debt and project financing. “2023 promises to be an eventful year for Kibo and we look forward to providing the market with further updates in due course,” he concludes.