Shares of Kibo Energy PLC (LON: KIBO) rallied 17.4% after acquiring a majority stake in EQTEC’s proposed Billingham waste gasification and power production facility in Teesside, UK.
The energy development company has signed a head of terms agreement to acquire a 54.54% stake in the proposed plant. In comparison, Eqtec will retain a 45.46% stake in the Haverton Hill special purpose vehicle (SPV) that owns the project.
Eqtec will retain its role as the project lead, while Kibo will be its majority shareholder. Kibo also clarified that it could use Eqtec’s waste gasification technology within its projects across Africa if the joint venture proves successful.
Eqtec further clarified that Kibo’s involvement in the Billingham project would “contribute to the acceleration of the project’s development, support a wide range of commercial opportunities and de-risk the subsequent construction and commissioning phase”.
Kibo Energy has a variety of ongoing projects in Tanzania, Botswana and Mozambique. The three projects are the Benga Power Plant Project (BPPP) in Mozambique, the Mabesekwa Coal Independent Power Project (MCIPP) in Botswana, and the Mbeya Coal to Power Project (MCPP) in Tanzania.
The firm would like to adopt Eqtec’s waste-to-energy gasification technology, which converts waste products to syngas, which can then generate power on a commercial scale. Eqtec’s technology accepts different waste types, including forestry, agricultural and industrial, and municipal solid waste, which is converted into refused-derived fuel.
Louis Coetzee, KIBO’ CEO, said: “Kibo's commitment to the EQTEC project in Billingham is clear and marks a key milestone in our new corporate strategy to solely invest in commercially sound, sustainable clean energy projects. Our present focus is primarily on projects in the UK and Africa that will realise their value in the near term, within 18-months.
David Palumbo, EQTEC’s CEO, said: “We are delighted to have Kibo as a joint investor and developer in one of these projects, the Billingham RDF-to-energy project. Their confidence in the potential that this plant has for the local area, their commitment to investing in clean energy projects and technologies, and our shared approach to how large infrastructure projects like this should be successfully project managed, will ensure our skill sets are combined to best achieve the objectives for Billingham.”
Kibo Energy share price.
Kibo Energy shares rallied 17.39% to trade at 0.27p, rising from Wednesday’s closing price of 0.23p.