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KIBO ENERGY PLC - Renewable Energy Solution Partnership

Release Date: 24/06/2019 10:30
Code(s): KBO     PDF:  
Wrap Text
Renewable Energy Solution Partnership

 Kibo Energy PLC (Incorporated in Ireland)
 (Registration Number: 451931)
 (External registration number: 011/007371/10)
 Share code on the JSE Limited: KBO
 Share code on the AIM: KIBO
 ISIN: IE00B97C0C31
 (“Kibo” or “the Company”)

 Dated: 24 June 2019

                             Kibo Energy PLC (‘Kibo’ or the ‘Company’)
                               Renewable Energy Solution Partnership

Kibo Energy PLC, the multi-asset, Africa-focused, energy company, is pleased to announce that it has
signed a collaboration agreement with ESS Tech Inc. (‘ESS’), a leader in the design, manufacture,
supply and installation of long-duration energy storage technology products and services for the power
sector, to develop suitable base-load electricity storage solutions. This agreement is in line with Kibo’s
strategy of incorporating long-term renewable energy solutions into its existing coal power projects and
is a critical component of its corporate strategy aimed at providing sustainable energy solutions that are
environmentally and economically feasible.

Highlights
   *ESS selected as Kibo’s preferred electricity storage technology partner
   *Agreement opens new avenues for Kibo in terms of renewable co-generation with its coal power
    projects
   *ESS’ iron flow battery offers a multi-decade operating lifetime, as well as multi-cycle
    capabilities with no loss of performance, and is one of the safest batteries available, using only
    salt, iron and water.
   *Initial focus on Kibo’s three African projects with the possibility of expanding into new
    opportunities in the future

Louis Coetzee, CEO of Kibo Energy, commented, “The inclusion of renewable energy into power
station designs allows for higher availability figures from a technical point of view and provides better
fundability options. With this in mind and given that storage capacity is an essential component of
realising renewable energy in base-load applications, we are delighted to have access to ESS’s
technology. This opens new avenues for Kibo in terms of renewable co-generation with our coal power
projects, an idea which is currently being developed for first application in the Benga Power Plant
Project (“BPPP”), and ultimately provides us with a significant advantage over competitors.

The addition of ESS to our partner team is a massive opportunity to establish the notion of co-located
renewable and clean-burning fossil fuel base-load energy towards a single combined objective:
sensible, sustainable, economic growth. ESS has a good understanding of the developing world; we are
delighted to be working with its team and look forward to building a mutually beneficial relationship.”

Collaboration Agreement
As part of its strategy focused on incorporating long-term renewable energy solutions into its existing
coal power projects, Kibo has signed a collaborative agreement with ESS (together ‘the parties’), a global
leader in the design, manufacture, supply and installation of electricity storage technology products and
services for the power sector. Having recognised the increasing need to generate reliable, sustainable,
cost-effective and efficient electricity, the parties will actively develop energy storage solutions, initially
focused on Kibo’s three African projects, Mbeya Coal to Power Project (‘MCPP’), Mabesekwa Coal
Independent Power Project (‘MCIPP’), and Benga Power Plant Project (‘BPPP’) (together ‘the
Projects’), with the possibility of expanding this collaboration into new opportunities in the future.

There has been a growing need to combine energy and power applications into a single flexible and
valuable long-duration storage asset in the base-load environment. To this end, ESS has developed an
iron flow battery technology, which offers unlimited cycling capability, zero degradation, no hazardous
materials, wide range of operating temperatures, and the lowest cost of service for long-duration
applications. Importantly, ESS technology can help power producers and/or utilities defer major capital
expenditures on distribution equipment by time shifting/storing energy during times of lower demand
or excess supply and releasing energy when demand peaks. Power producers and/or utilities can easily
communicate with ESS systems installed at end-user sites to dynamically manage customer electricity
consumption in response to current electricity supplies. The innovative energy storage systems of ESS
also help with frequency regulation and other ancillary services and can reduce a utility’s dependence
on fossil fuel generation plants, shifting to a more sustainable model over time.

The key terms of the collaboration agreement state that ESS will:
       *Provide Kibo with technical advice and support for its feasibility and related studies;
       *Collaborate with Kibo to actively develop, create and facilitate new project opportunities, and
        to work with Kibo towards securing funding and creating funding opportunities for the various
        Projects;
       *Assist the Company in its efforts to secure Power Purchase Agreements and to socialise the
        Projects with related governments and appropriate authorities and stakeholders;
       *Provide information to the Owner’s Engineer (‘OE’) to maximise required plant technical
        specification and performance, and where applicable mitigate to OE costs payable by Kibo;
       *Provide access to designated Project stakeholders to selected ESS technical material related
        to storage technology equipment; and
       *Be the preferred electricity storage technology partner to Kibo for the Projects.

                                             **ENDS**

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

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

  Louis Coetzee           info@kibo.energy           Kibo Energy PLC            Chief Executive Officer
 Andreas Lianos          +27 (0) 83 4408365             River Group            Corporate and Designated
                                                                                   Adviser on JSE

   Ben Tadd /           +44 (0) 20 3700 0093       SVS Securities Limited            Joint Broker
   Tom Curran
                                                    First Equity Limited             Joint Broker
 Jason Robertson        +44 (0) 20 7374 2212
Andrew Thomson             +61 8 9480 2500         RFC Ambrian Limited             NOMAD on AIM
 Isabel de Salis /      +44 (0) 20 7236 1177       St Brides Partners Ltd     Investor & Media Relations
   Gaby Jenner                                                                          Adviser

 Notes
 Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute
 power deficit, which is one of the primary impediments to economic development in Sub-Saharan
 Africa. To this end, it is the Company’s objective to become a leading independent power producer
 in the region.

 Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to
 Power Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in
 Botswana; and the Benga Power Plant Project (‘BPPP’) in Mozambique. By developing these
 projects in parallel, the Company intends to leverage considerable economies of scale and timing in
 respect of strategic partnerships, procurement, equipment, human capital, execution capability /
 capacity and project finance.

 Additionally, the Company has a 60% interest in MAST Energy Developments Limited (‘MED’), a
 private UK registered company targeting the development and operation of flexible power plants to
 service the Reserve Power generation market.

About ESS Tech Inc.
For more information, visit www.essinc.com.

Johannesburg
24 June 2019
Corporate and Designated Adviser
River Group

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