AltX-listed Kibo Energy, the energy-focused development company, said on Friday that it has decided to dispose of all its coal assets as it reviewed its operations.
This as Kibo executive chairman Christian Schaffalitzky said the past few months had seen considerable progress across Kibo’s renewable and sustainable energy strategy.
“Kibo announced an extensive review of operations and assets, the company decided to dispose of all its coal assets while retaining the associated energy (power) projects through its introduction of innovative biofuel technology to its arsenal of solutions,” he said.
Schaffalitzky said by undertaking an evidence-based process of test and evaluation on the biofuel technology, Kibo believed, subject to confirmatory test work, replacement of conventionally mined coal with a 100% renewable energy source was possible.
“Work completed to date indicates that our existing coal-fired power plant designs can be adapted, with minor design changes, to accept the new renewable fuel solution.
“All current and future projects across the Kibo energy portfolio, as well as its investment holdings, have been extensively reviewed and realigned with the company’s renewed strategy to focus on renewable, sustainable energy solutions while retaining maximum value for Kibo and its shareholders as well as remaining attractive for acquisition, funding, and construction by potential purchasers,” he said.
Kibo said the operational highlights in the 2022 year to date included the continued focus on the company’s revised renewable energy strategy in order to align with global requirements.
In the reported period, the group entered a 10-year take-or-pay conditional Power Purchase Agreement to generate base-load electricity from a 2.7 MW plastic-to-syngas power plant.
“The project is the first under Sustineri Energy, a joint venture in which Kibo holds 65%, with the balance of 35% held by Industrial Green Energy Solutions,” it said.
Kibo reported that it signed a rolling five-year Framework Agreement with Enerox GmbH to develop and deploy Long Duration Energy Storage solutions in selected target sectors in the Southern African Development Community countries.
“The agreement grants Kibo exclusive rights to the marketing, sales, configuration, and delivery of CellCube solutions, subject to successful Proof of Concepts, within the target sectors,” Kibo said.
The group said it proceeded with further test work to identify a suitable clean/renewable energy fuel source, based on test results to date, with the aim of converting the company’s existing energy projects in Tanzania, Botswana, and Mozambique to clean/renewable energy projects,.
Looking forward, Schaffalitzky said despite the ongoing war in Ukraine, rising inflation and increased interest rates add to uncertainty across industries.
“I am pleased to report that economic activity remains high, and this has yielded positive results for Kibo in terms of the development of its ongoing and new projects in the first half of 2022,” he said.
Schaffalitzky said Kibo intended to further streamline its operations with a primary focus on the acquisition and development of its alternative and renewable, sustainable energy solution projects, many on which we have already made considerable progress while staying committed to the disposal and conversion of its large-scale fossil fuel-based utility projects.
In its unaudited interim results for the six months ended 30 June, 2022, the group said headline earnings per share loss were £0.0006 (R0.012).
Basic and diluted earnings per share were £0.0006 loss for June 2022, compared to the previous year’s £0.0004 loss.
According to Kibo, cash outflow from consolidated operating activities amounted to £1 601 095, compared to the previous year’s £1 715 620.
Operating loss for the reported period included listing, and capital raising fees amounted to £185 070.
The group reported that project and exploration expenditure incurred £415 621, of which £337 991 related to MAST Energy Developments Plc (MED)’s renewable energy operations.