KIBO ENERGY PLC - Kibo Announces Optimization Improvement Decision to first South African Waste-to-Energy Project

Kibo Announces Optimization Improvement Decision to first South African Waste-to-Energy Project

Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
(‘Kibo’ or ‘the Company’)

Dated: 17 January 2023

                           Kibo Energy PLC ('Kibo' or the 'Company')

Kibo Announces Optimization Improvement Decision to first South African Waste-to-Energy
                                     Project

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable-energy-focused development company,
is pleased to announce the Company’s decision to potentially introduce an additional revenue stream
to its 2.7 MW plastic-to-syngas power plant (the ‘Project’), which sits within the 65%-owned
Sustineri Energy (Pty) Ltd, following the Company’s previous announcement dated 14 February
2022. This potential new revenue stream involves the production of synthetic oil from non-recyclable
plastic waste in addition to the production of electricity from syngas, which promises significant
added benefits to the Project.

It is expected that the addition of synthetic oil production could significantly increase the Project’s
profitability and provides the Company with the opportunity to potentially generate revenue much
earlier than initially projected. It also contributes materially to de-risking the Project and will make
the Project significantly more attractive to a wider spectrum of interested funders, thereby reducing
the funding risk.

The Company has already determined the technical and commercial viability of synthetic oil
production through the current Project design. It is now conducting a comprehensive integration study
to determine the full technical, operational and financial impact to the Project in terms of construction,
commissioning and, most importantly, ultimate profitability and investment returns.

As a result of the decision to potentially introduce the production of synthetic oil to the Project, the
development of the Project can then be executed in distinct Phases, with an expected positive impact
on the Project’s funding requirements and its ability to secure said financing. Phase 1 will include the
construction of the Plant to produce synthetic oil and will be followed by Phase 2, when the electricity
from syngas production facility will be added. Phase 1 involves the installation of a materials
preparation system, a pyrolysis chamber and condensers that will produce synthetic oil product(s).
During the second phase, the pyrolysis chamber temperature will be elevated to produce syngas that
will be fed to newly installed gas engines for electricity generation. The principal design of Phases 1
and 2 will remain the same, with only a few equipment additions during Phase 2. The final decision
to proceed with the implementation of Phase 1, remains subject to the outcomes of the integration
study referred to above. Further to the 14 February 2022 announcement, the Company will now
complete the integration study and continue to secure Financial Close with the Construction Phase to
commence shortly thereafter and will provide shareholders with a more detailed update in due course.

Louis Coetzee, CEO and Acting Chairman of Kibo Energy, says: ‘The potential introduction of
this significant development to our first South African waste-to-energy project has great potential for
investors, the Company and South Africa’s highly challenging energy sector. The phased approach
to the Project will allow Kibo Energy the opportunity to stay on-track with the project rollout but
with potentially significant value added to an already strong business case. It will also ensure that
the Company remains on course to actively pursue the successful execution of its declared strategy
of advancing clean / renewable energy solutions.

'We eagerly await the results of the Project Integration Study and look forward to updating the market
on its progress.’

This announcement contains inside information as stipulated under the Market Abuse Regulations
(EU) no. 596/2014.
                                         **ENDS**

For further information please visit www.kibo.energy or contact:


                                                                               
  Louis Coetzee      info@kibo.energy                   Kibo Energy PLC        Chief Executive
                                                                               Officer
                                            
  James Biddle       +44 207 628 3396                   Beaumont Cornish       Nominated Adviser
  Roland Cormish                                        Limited

  Claire Noyce       +44 20 3764 2341                   Hybridan LLP           Joint Broker

                                                        
  Damon Heath        +44 207 186 9952                   Shard Capital          Joint Broker
                                                        Partners LLP

  Zainab Slemang zainab@lifacommunications.com          Lifa                   Investor and Media
  van Rijmenant                                         Communications         Relations Consultant


Johannesburg
17 January 2023
Designated Adviser
River Group

Date: 17-01-2023 11:15:00
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