Kibo strikes energy storage accord


Kibo strikes energy storage accord

Published Date: 2019-06-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Kibo strikes energy storage accord

The announcement of the partnership with ESS Tech came alongside the release of its 2018 financial results.

Kibo Energy has signed a collaboration agreement with energy storage expert ESS Tech Inc. to develop base-load electricity storage solutions for its growing number of projects across the continent. The energy group says the accord is in line with its strategy of incorporating long-term renewable energy solutions into its existing coal power projects.

The initial focus of the partnership will be on Kibo's three African projects in Botswana, Tanzania and Mozambique, with the possibility of expanding into new opportunities in the future. It said the agreement opened new avenues in terms of renewable co-generation with its coal power projects.

The announcement came alongside the release of Kibo's annual results. The group hasn't generated any revenue yet as its projects are still in development. Administrative expenses of £2.05 million, as well as impairments, exploration expenditure and listing and capital-raising fees left it with a loss of £4.04 million for the year to end-December.

During the year Kibo acquired majority interests in the Mabesekwa Coal Independent Power Project in Botswana, the Benga Power Plant Project in Mozambique, and a 60% equity interest in MAST Energy Developments Limited in the UK. The investment in MAST is aimed at providing it with an opportunity for revenue streams in the short term, whilst also creating an ability to leverage MAST's experience in electricity generation to develop new energy projects in Africa by introducing and developing the UK Reserve Power business model alongside its existing coal-to-power projects on the continent.

It said the diversification across countries would help insulate it from sovereign risk in addition to benefiting from sub-Saharan Africa's urgent and increasing demand for reliable, sustainable and affordable electricity.

Its shares rose 4% to 26c in thin trade yesterday.

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