KIBO ENERGY PLC - Kibo Power Purchase Agreement on SA Waste-to-Energy Project Extended to 20 Years

Kibo Power Purchase Agreement on SA Waste-to-Energy Project Extended to 20 Years

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: 14 July 2022

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

   Kibo Power Purchase Agreement on SA Waste-to-Energy Project Extended to 20 Years

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy focused development company,
is pleased to announce that it has extended to 20 years its conditional 10-year take-or-pay Power
Purchase Agreement (‘PPA’), first announced in the Company’s RNS dated 14 February 2022. The
PPA outlines the construction, commissioning and operation of a 2.7 MW plastic-to-syngas power
plant to generate baseload electricity for an industrial business park developer (the ‘Client’) in
Gauteng, South Africa (the ‘Project’). The Project is the Company’s first under its joint venture,
Sustineri Energy, in which Kibo Energy PLC holds 65% and Industrial Green Energy Solutions Pty
Ltd (‘IGES’) holds the balance of 35%.

The extended term period to 20 years will improve the already compelling Project highlights, as per
the Company’s RNS dated 14 February 2022, including:

 * Strong financials: An increase in the projected EBITDA from c. ZAR 388 million to c. ZAR 953
   million, of which an amount of c. ZAR 619 million is attributable to the Company;

 * Improved Internal Rate of Return (‘IRR’): An increased projected IRR of 15-18%, up from
   11-14%; and

 * Commencement of construction and commissioning: The Construction Phase is scheduled to
   commence during Q1 2023 with project commissioning 11 to 14 months thereafter.

Note: All financial numbers as stated herein remain subject to change until such a time as actual
production figures are available, following a suitable period of steady state operation.

Louis Coetzee, Chief Executive Officer at Kibo Energy, says: “We are excited to be forging ahead
with our first waste-to-energy PPA that aligns with our commitment and renewed strategy to disinvest
from coal and advance clean energy in the African market. The original PPA guaranteed revenue
generation over 10 years with the realistic potential to secure significant additional revenue from the
sale of heat and other by-products, and gained keen interest from funders.

“Extending the term period from 10 to 20 years furthermore cements this potential. It signifies a
confidence in the Project and significantly increases its attractiveness to prospective debt and project
funders. We already saw significant interest from potential debt and project funders, prior to the term
extension and we believe that the term extension will make the already advanced process of securing
debt and project funding significantly smoother and quicker.”

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     Chief Executive
                                                            PLC             Officer

                                                                            
     Andreas Lianos    +357 99 53 1107                      River Group     JSE Corporate and
                                                                            Designated Adviser

     Claire Noyce      +44 (0) 20 3764 2341                 Hybridan LLP    Joint Broker

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

     Bhavesh Patel /   +44 20 3440 6800                     RFC Ambrian     NOMAD on AIM
     Stephen Allen                                          Ltd


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

Johannesburg
14 July 2022
Corporate and Designated Adviser
River Group

Date: 14-07-2022 08:00:00
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