Kibo Energy has struck a deal to develop a 2.7 MW plastic syngas power plant to produce baseload electricity over a 10-year Power Purchase Agreement (PPA) take-or-pay based contract. The project will be developed under Sustineri Energy where Kibo Energy has a 65% stake and Industrial Green Energy Solution holds a 35% stake.
The power plant will be situated in Gauteng, South Africa and operated by an Industrial Business Park Developer. The overall aim of the project is to provide cleaner energy produced from selected non-recyclable plastics. After being exposed to high temperatures to produce high quality syngas – a process which powers engines to generate electrical and heat energy – the waste products will be transformed into critical clean energy. Furthermore, the heat energy from the gas can be sold directly to customers within the industrial park.
“Following the Company’s disinvestment from coal, we are excited to have signed our first waste to energy PPA that aligns to our strategy on advancing clean energy in the African market,” stated Louis Coetzee, CEO of Kibo Energy. He further added that “The Project is a first in a pipeline of projects under the Company’s waste-to-energy portfolio, which we are proud to have worked on together with our partners, IGES.”
The 2.7 MW power plant is expected to generate approximately $25.7 million in revenue. The construction of the power plant is set to commence in the fourth quarter of 2022 and is expected to significantly contribute to the energy sector.