REG - Kibo Energy PLC - Kibo Subsidiary Business Update

Kibo EnergyAnnouncement

07/08/2024 07:00

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RNS Number : 4335Z  Kibo Energy PLC  07 August 2024

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

LEI Code: 635400WTCRIZB6TVGZ23

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

('Kibo' or 'the Company')

 

Dated: 7 August 2024

 

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

 

Kibo Subsidiary Announces Business Update

 

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused
development company, announces a business update by its subsidiary Mast Energy
Developments PLC ('MED'), a UK-based multi-asset owner, developer and operator
in the rapidly growing flexible power market.

 

Further details can be found in the full  MED RNS  Announcement, which is
available below and at med.energy (https://med.energy/?page_id=3140) .

 

-------------------------

Dated: 7 August 2024

 

Mast Energy Developments PLC ('MED' or 'the Company')

 

Pyebridge Refurbished Genset Achieves c. £57k Revenue in First Month

 

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and
operator in the rapidly growing flexible power market, is pleased to announce
an update regarding its Pyebridge flexible power generation asset
("Pyebridge").

 

Key Highlights:

 

·    First refurbished genset achieves c. £56,689 revenue in first month
of operation (inclusive of initial ramp-up period);

·    Refurbished genset outperforms market with 40% margin;

·    Resulting in revenue per MW month of c. £21,000; and

·    Pyebridge site has 3x 2.7MW gensets operation (thus 8.1MW total),
although, to date, only one of which has been full refurbished and is
operating at optimum capacity.

 

Further to the Company's previous announcement dated 1 July 2024, following
the successful completion of the refurbishment of the first of the Pyebridge
site's 3x 2.7MW Jenbacher gensets (thus 8.1MW generation capacity in total),
the refurbished genset commenced commercial operational running on 1 July. The
MED management team in conjunction with the Pyebridge site's O&M
contractor have carefully monitored the refurbished genset to ensure optimal
performance. An overview of the refurbished genset's maiden actual performance
key data for the month of July 2024 is provided below, based on the latest
available trading data.

 

·    Electricity Generation Sales Revenue (via PPA) - c. £56,689;

·    Total Electricity Generation Output - c. 581 MWh;

·    Average Electricity Generation Sales Price achieved per MWh sold - c.
£98; and

·    Genset Reliability: 100%.

 

A couple of the key highlights from July are the achieved revenue per MW month
of c. £21,000 and, the achieved actual average electricity sales price per
MWh sold of £98 compared to the average Wholesale Market price of £70 over
the same period, which resulted in a 40% outperformance.

 

Pyebridge has 3x 2.7MW gensets in operation (thus 8.1MW total), although, to
date, only one of which has been fully refurbished and is operating at optimum
capacity. Based on the refurbished genset's maiden actual performance data for
the month of July, there is a very clear indication that the overhaul was
indeed successful, which paves the way and underpins the refurbishment of the
Pyebridge site's other two gensets in sequence, as planned and previously
announced.

 

In addition to the PPA revenue, Pyebridge is also receiving its current
Capacity Market contract's associated annual gross profit margin income of
c. £308,000 from the government, as previously announced. It is expected
that the Pyebridge site will achieve a gross profit margin of around 28%.

 

In order to further bolster Pyebridge's income streams and profitability, the
MED management team is working on and expects to apply Pyebridge into the
Balancing Mechanism ("BM") market. The BM is used by the electricity system
operator ("ESO") for Great Britain to procure firm reserve capacity at the
day-ahead stage. BM can be stacked with Capacity Market contracts, with two
services from the same unit during the same time periods, receiving revenue
from two sources for the same MW.

 

The Project Finance with RiverFort, as previously announced, has enabled the
successful completion of the first genset's overhaul, and MED is appreciative
of RiverFort's ongoing support as its asset-level strategic funding partner,
in order to grow the business.

 

To give more insight into the work-stream involved in overhauling the genset,
including photos of key stages during the process, which has now been updated
following the successful completion of the first overhaul, please visit the
MED website, "Pyebridge Overhaul Story" webpage at
https://med.energy/?page_id=4466 (https://med.energy/?page_id=4466) .

 

MED's other existing sites

 

In addition to Pyebridge, MED has a portfolio of other sites that are under
development. The following MED sites, Hindlip (7.5MW), Bordesley (4.5MW)
and Rochdale (4.5MW) are each construction-ready, with all the requirements
for a flexible generation site in place and in good standing, most notably
fully specified EPC and O&M offers, planning consent, gas connection
offer, grid connection offer and construction management plan. Subject to
capex funding, these sites could immediately continue with their construction
phase with an expected timeline to commercial operations date of around 12
months from receipt of funding, to go into production and revenue generation.

 

Pieter Krügel, MED CEO, commented: "We are very pleased with the refurbished
genset's maiden performance results for the month of July. The data shows that
the overhaul of the first genset at Pyebridge has indeed been successful, and
underpins the overhaul of the remaining two gensets as planned. Further, the
initial data provides a reasonable indication of Pyebridge's revenue
generation potential.

 

"MED's funding partnership with RiverFort has enabled and fast-tracked the
work programme at Pyebridge, which will result in increased revenue
generation. RiverFort's ongoing support to MED is invaluable and much
appreciated.

 

"MED remains committed to growing a portfolio of sites providing green focused
energy generation with a capacity of 100 MW. This growth will be achieved
through identified sites and the acquisition of new sites, similar to
Pyebridge.

 

"We are looking forward to updating the market with further progress across
the board in due course."

 

ENDS

 

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ('UK MAR'). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

For further information please visit www.med.energy (http://www.med.energy/)
or contact:

 Pieter Krügel   info@med.energy (mailto:info@med.energy)  Mast Energy Developments PLC  CEO
 Jon Belliss     +44 (0)20 7399 9425                       Novum Securities              Corporate Broker

 

_______________________

 

**ENDS**

 

For further information please visit www.kibo.energy (http://www.kibo.energy/)
or contact:

 

 Cobus van der Merwe  info@kibo.energy (mailto:info@kibo.energy)  Kibo Energy PLC                        Chief Executive Officer
 James Biddle         +44 207 628 3396                            Beaumont Cornish Limited               Nominated Adviser

 Roland Cornish
 Claire Noyce         +44 20 3764 2341                            Hybridan LLP                           Joint Broker
 James Sheehan        +44 20 7048 9400                            Global Investment Strategy UK Limited  Joint Broker

 

Beaumont Cornish Limited ('Beaumont Cornish') is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Johannesburg

7 August 2024

Corporate and Designated Adviser

River Group

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