Kibo Energy's Unit Secures Power Purchase Deal With Statkraft Markets

(Alliance News) - Kibo Energy PLC on Tuesday said its subsidiary MAST Energy Developments Ltd has ...

Alliance News 25 June, 2019 | 3:05PM
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(Alliance News) - Kibo Energy PLC on Tuesday said its subsidiary MAST Energy Developments Ltd has concluded negotiations for a five-year power purchase agreement for its Bordersley project, located in the UK, with Statkraft Markets GmbH.

Kibo holds 60% stake in MAST Energy, which develops and operates flexible power plants to service the UK reserve power generation market.

Under the terms, the energy company said MED will be responsible for the operation and maintenance of Bordersley, while Statkraft Markets will provide feedstocks and trade the power generated at Bordersley.

Statkraft Markets, which is a part of Norwegian renewable energy firm Statkraft AS, is trading fuels in continental Europe.

"Finalizing a power purchase agreement with a global player such as Statkraft is a key deliverable in terms of the overall project management plan at Bordersley to deliver a technically and commercially viable project, thereby solidifying the platform for long term revenue creation as of the first quarter of 2020," said Kibo Chief Executive Louis Coetzee.

Kibo shares were trading 6.8% higher on Tuesday in London at 1.04 pence each, while in Johannesburg the shares were up 3.9% at ZAR0.27 each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Kibo Energy PLC 0.85 GBX -2.30 -
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