Page 11 - AfrElec Week 38 2021

AfrElec WASTE-TO -POWER AfrElec

South Africa’s Kibo Energy acquires

stake in UK waste-to-energy plant

SOUTH AFRICA SOUTH African listed energy company Kibo completed.
Energy signed heads of terms with London’s The plant is expected to process 200,000 met-
Aim-listed EQTEC, advancing its energy-from- ric tonnes per year of non-recyclable everyday
waste portfolio. municipal solid waste into 25 MW of green elec-
Kibo Energy, a renewable energy focused tricity, enough to power 50,000 homes.
development company, will acquire a 54.54% “The acquisition aligns perfectly with Kibo’s
interest in the gasification solutions company’s existing corporate strategy and more specifi-
proposed 25-MW Billingham waste gasification cally with our current UK project focus. We are
and power plant at Haverton Hill, in Teesside in pleased with the progress it has already made to
the UK. secure the funding required for this transaction,”
Kibo Energy invests in renewable energy said Coetzee.
opportunities, with a focus on developing a port- David Palumbo, CEO of EQTEC, said: “In
folio of waste-to-energy projects in South Africa. the UK, our focus is on developing and commis-
It announced on Wednesday, 15 September sioning the country’s first three commercially
that it now has a majority stake in the Billingham successful gasification plants, which will convert
plant. EQTEC will retain 45.46% equity in the local municipal waste into clean energy for local
project’s special purpose vehicle (SPV). communities.”
Louis Coetzee, CEO of KIBO, said: “Kibo’s Kibo’s initial funding contribution will be
commitment to the EQTEC project in Billing- GBP3mn ($4.12mn) paid as an equity subscrip-
ham is clear and marks a key milestone in our tion, plus convertible shareholder loan facilities
new corporate strategy to solely invest in com- in accordance with the agreement. Kibo will also
mercially sound, sustainable clean energy pro- have the option to provide additional converti-
jects. Our present focus is primarily on projects ble shareholder loan facilities to the project’s SPV
in the UK and Africa that will realise their value and/or convert future project development fees
in the near term, within 18 months. We are very into further equity in the project in the future.
pleased to have joined forces with leading player Project rights, held by the project SPV,
EQTEC to invest in and develop this plant fur- include all technology licence agreements, all
ther, and additionally see potential focus to roll equipment supply and maintenance agreements
out its Advanced Gasification Technology to with EQTEC and all rights to the site under exist-
our Africa projects and the Africa market in the ing agreements.
future.” EQTEC will also remain as the lead devel-
The project is at advanced stages of devel- opment manager on the project, providing the
opent, with a concept design for the full plant design and core Advanced Gasification Technol-
produced, planning permission approved, grid ogy and subsequently retaining the maintenance
connection offer secured and technical due contract. ™
diligence with technology insurance providers

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