Coal is seen being transported in this file picture by Simphiwe Mbokazi.

JOHANNESBURG - Africa focused company Kibo Energy said on Friday it had made progress in the development of its Benga power plant project in Mozambique, with the initial findings from a completed independent base case financial model demonstrating its economic robustness and viability.

In a statement, Kibo Energy said internal research on renewable energy and storage options indicated promising opportunities for optimisation in terms of plant availability and limiting greenhouse gas emissions.

"The stars are aligning for ... Benga, as we continue to advance in its development," CEO Louis Coetzee said of the 150-300 MW coal-fired power plant, a joint venture with Mozambican energy company Termoeléctrica de Benga S.A. in which Kibo Energy has a 65 percent stake.

"Whilst in the past, we have labelled the project as a thermal coal power project, in reality, it could encompass much more, as our own research on renewable energy and storage options indicate."

He said the company's current priority however was to complete term sheets for coal supply and power purchase agreements, with discussions progressing well for both.

- African News Agency (ANA)