JOHANNESBURG Multi-asset Africa-focused company Kibo Energy said on Wednesday its 65 percent owned Benga Independent Power Project in Mozambique, which includes 150-300MW coal fired power station, was advanced toward potential development with joint venture partnerTermoelectrica.
Kibo said a definitive feasibility study (DFS) designed to confirm Benga’s commercial and operational viability was progressing well ahead of schedule and discussions regarding power purchase agreements (PPAs) with prospective off-takers continued to advance.
Negotiations with potential coal suppliers and private power off-takers would receive priority attention during the first quarter of 2019.
"We are delighted with the rapid progress being made at the Benga project, which we anticipate will help alleviate the critical energy shortages in Mozambique," Kibo Energy CEO Louis Coetzee said.
"With its strong regional and governmental support, a DFS designed to confirm the project’s commercial and operational viability is progressing well ahead of schedule, whilst both PPA discussions with prospective off-takers and negotiations with potential coal suppliers are also advancing."
He said an aggressive work programme for 2019 was underway.
The company recently announced the renewal of a memorandum of understanding with Mozambican state-owned electric utility Electricidade de Mocambique to advance the financing construction and operation of the project.
Benga aims to initially deliver a 150 MW coal-fired power station and already possesses a suite of authorisations and agreements in addition to a lease title over land in the Tete province, where it is located in direct vicinity of various thermal coal producers which could be a source of feedstock.