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Kibo provides update on Benga power plant project

Published by , Assistant Editor
World Coal,

Kibo Energy plc (Kibo), the multi-asset Africa-focused energy company, has announced an update on its 65% owned Benga Independent Power Project (Benga) in Mozambique, which includes a 150 – 300 MW coal-fired power plant, being advanced toward potential development with its joint venture partner, Termoelectrica de Mozambique de Benga S.A. (Termoeléctrica).


  • A Definitive Feasibility Study (DFS) designed to confirm Benga's commercial and operational viability is progressing well ahead of schedule.
  • Discussions regarding Power Purchase Agreements (PPAs) with prospective off-takers continue to advance.
  • Negotiations with potential coal suppliers and private power off-takers progressing well; these will receive priority attention during 1Q19.
  • 2019 work plan advancing including final grid integration study, DFS, geotechnical work, financial model, engineering, procurement, and construction (EPC) technical specifications, EPC benchmarking and award, and Environmental Impact Assessment (EIA).
  • Site visits included a productive meeting with the Ministry of Energy and Minerals on further development of the project.  

Louis Coetzee, CEO of Kibo Energy said: "We are delighted with the rapid progress being made at the Benga project, which we anticipate will help alleviate the critical energy shortages in Mozambique. With its strong regional and governmental support, a DFS designed to confirm the project's commercial and operational viability is progressing well ahead of schedule, whilst both PPA discussions with prospective off-takers and negotiations with potential coal suppliers are also advancing. An aggressive work programme for 2019 is underway; we look forward to updating shareholders on continued developments at Benga."  

Further details

As part of its long-term strategic goal to position the company as a leading regional energy player, Kibo is advancing the development of Benga in Mozambique according to plan, including the right to construct and operate a 150 – 300 MW coal-fired power plant, in tandem with its partner, Termoeléctrica. A definitive feasibility study designed to confirm its commercial and operational viability is progressing well ahead of schedule and discussions regarding a PPA with prospective off-takers continue to advance.   

Notably, and most recently, the company announced the renewal of a Memorandum of Understanding (MOU) with Mozambican state-owned electric utility, Electricidade de Mocambique (EDM), to advance the financing, construction and operation of this project. Additionally, negotiations with potential coal suppliers and private power off-takers are progressing well; these will receive priority attention during 1Q19.  

Benga aims to initially deliver a 150 MW coal-fired power plant and already possesses a suite of authorisations and agreements in addition to a lease title over land in the Tete province, Mozambique. By default, it will remain in compliance with relevant Mozambique legislation, which will include power, environmental and social responsibility objectives.  

Benga is located in the Tete Province in direct vicinity of various thermal coal producers, which could be a source of feedstock. As an investment opportunity, it is defined by the urgent requirement for power by the mining industry in the region, notably the major mining operations, as well as the general need for energy in Mozambique.

The current development status of Benga is as follows:

  • Land title for 59 ha is secured, free of any settlements and located close to other coal mines and 2 km from the Zambezi river.
  • PFS was approved by MIREM (Ministry of Mineral Resources and Energy) during 2017 and subsequently the project was authorised to proceed to bankability phase.
  • A Project Development Framework in relation to Benga with MIREM has commenced and is ongoing and follows on from the PFS authorisation phase referred to previously.
  • EIA, emanating from the pre-JV period, is ongoing with Phase 1, being the registration phase, completed. Phase 2 of the EIA process is underway with completion scheduled for 2Q19.
  • STEAG, a German Energy Consultancy, has been contracted to execute and complete the Definitive Feasibility Study (DFS), as well as the EPC specification and clarification process.
  • A grid integration study contract was agreed with PNO Consultants from South Africa and is ongoing.
  • A topographical survey (LiDAR) has been conducted.
  • Confirmation from the regional water authority that water from the Zambezi river is sufficient (according to current study outcomes) and available for extraction, subject to the successful completion of an EIA study and appropriate approvals.
  • Discussions in relation to Coal Purchase Agreements (CPA) with neighbouring coal producers in advanced stages.
  • An existing MoU has been renewed with EDM in December 2018, which formalises cooperation from EDM to support project development (as reported in RNS dated 12 December 2018).
  • PPAs with potential private off-takers in the Tete vicinity in advanced stages.
  • A site visit with STEAG and other technical consultants completed from 14 - 17 January 2019.
  • A site visit included productive meeting with Ministry of Energy and Minerals on further development of the project.
  • PPA discussions with EDM commenced and ongoing.

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