Page 7 - AfrElec Week 15 2021

AfrElec COAL-FIRED GENERATION AfrElec

Kibo Energy moves close to PPA

with Mozambique’s EDM

MOZAMBIQUE KIBO Energy and its local joint venture (JV) the meeting demonstrate a robust business case,
partners have agreed on the next steps towards consisting of a project with a diversified and bal-
the ultimate finalisation of a power purchase anced offtake composition that also brings with
agreement (PPA) at the company’s Benga power it pertinent strategic advantages to the energy
plant project (BPPP) in Mozambique. sector as a whole,” said Louis Coetzee, CEO of
During talks with Mozambique energy utility Kibo Energy.
Electricidade de Moçambique (EDM), Kibo pre- In December 2020, Kibo Energy said it has
sented the final optimised definitive feasibility agreed with Vale Mozambique to supply coal to
study, inclusive of the updated grid integration the Benga project.
study, and a summary of an updated draft finan- Kibo said it had signed a supply agreement
cial model for the PPA process. that will meet the full operational coal require-
The Benga project will be in Tete Province ments of a 150-MW coal-fired power plant.
and involve a 150- to 300-MW power plant. Kibo has also signed a power supply agree-
“The workshop in Maputo that was long ment with Baobab Resources to supply power
overdue on account of travel restrictions due to the Tete Steel and Vanadium project in
to [coronavirus] COVID-19 was productive Mozambique.
and succeeded in significantly enhancing the Kibo is developing three coal-fuelled power
already good momentum that exists in the ongo- projects across Africa: the Mbeya coal-to-power
ing development of the BPPP. The workshop also project (MCPP) in Tanzania; the Mabesekwa
afforded us the opportunity to formally submit coal independent power project (‘MCIPP’) in
an optimised version of the feasibility study and Botswana and the and the Benga independent
related work progress reports, which amongst power project (‘BIPP’) in Mozambique.
others also incorporates the inclusion of the The government of Mozambique is keen to
Baobab Tete Steel and Vanadium project in the foster foreign investment in the energy sector,
enhanced business case for the BPPP. The studies especially considering Vale’s recent decision to
and reports that were submitted to EDM during divest its coal interests in the country.™

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