JSE-listed Kibo Energy’s UK subsidiary, Mast Energy, has lined up the acquisition of an operational 10MW power generating site in south-western England to help the company quickly generate revenue at a lower investment cost.
Mast Energy has completed the second phase of the refurbishment of the power-generating sets at its Pyebridge site in the UK.
It said yesterday that the Pyebridge gensets had been successfully completed, within budget and expected timelines.
The energy company is focusing on the potential acquisition of the operational 10MW “flexible power generation site” in England.
“The main rationale behind acquiring an existing operational site is to achieve a lower investment cost per installed MW and a shorter timeline to revenue generation compared to a new-build,” said Kibo.
However, the acquisition was subject to final due diligence, the contract, funding and related clearances and approvals.
Nonetheless, discussions around the acquisition “have been positive, and Mast Energy is confident that the potential acquisition” will be successful.
Mast Energy could not provide a guidance on possible terms and timeline for the transaction.
“We are excited about the prospect of the potential acquisition, and although there is no guarantee on the current terms or timeline, we are working diligently to progress and complete the transaction as quickly as possible,” said Pieter Krügel, the CEO.
Regarding its Pyebridge gensets, Mast Energy said the refurbished units had been re-installed while cold and hot re-commissioning had successfully been completed.
The genset was running commercially and generating revenue under the Pyebridge site’s power purchase agreement with Statkraft. That was in addition to the site’s Capacity Market contract gross profit income.
It was expected that the refurbished genset would significantly increase the Pyebridge site’s revenue and gross profits.
“The Mast Energy management team, in conjunction with its contractor, will monitor the performance of the refurbished genset carefully to ensure optimal performance.”
The next step in the programme for Pyebridge would commence with the overhaul of the second set of the site’s gensets, and it was expected that “this will be initiated shortly”.
Funding agreements for the project with RiverFort had enabled the successful completion of the first genset’s overhaul.
Last week, Kibo Energy rescinded its previously announced board changes and has made a U-turn on the proposed share placement amounting to £500 000 (R11.5 million).
Kibo Energy has proposed to appoint Clive Roberts, who is a significant shareholder in the company, as a non-executive director and chairperson of the board, subject to completion of regulatory due diligence.
While Kibo had announced the board restructuring, which has now been rescinded, it also announced a divestment programme that would result in a restructuring of the company’s balance sheet.
As a consequence of the board composition review, Kibo has made a U-turn on the proposed placing of £500 000 at 0.015 pence.
The placement “will also not proceed and the company has arranged and agreed a revised alternative board composition and a new” placing.
Roberts, who has spent the past 10 years investing in start-ups and London AIM-listed companies, has helped raise significant funding for multiple companies and is being enlisted to the Kibo board to help with the company’s fund-raising efforts.
BUSINESS REPORT