- The syngas project is the first under Sustineri Energy.
- The Syngas projects highlight financial models, internal revenue rate, reduction of plastic pollution to produce sustainable energy.
- The PPA will ensure revenue generation for the next ten years.
An energy development firm, Kibo Energy, has signed a 10-year take-or-pay conditional Power Purchase Agreement (PPA) to generate baseload electricity from a 2.7MW syngas power plant.
The plastic-to-syngas plant will be built, commissioned, and operated for a South African industrial business park developer in Gauteng. The syngas project is the first under Sustineri Energy, a joint venture in which Kibo Energy owns 65% and Industrial Green Energy Solutions owns 35% (IGES).
Using a high-temperature pyrolysis process, the waste to energy project will provide cleaner electricity to the industrial park developer. The method employs non-recyclable plastics that undergo thermal degradation to produce high-quality syngas.
The Syngas projects highlight financial models, internal revenue rate, reduction of plastic pollution to produce sustainable energy and the addressing of energy supply issues. It also addresses the partnership with industry leaders; the CAPEX requirement is expected to be c. R180 million with Financial Close anticipated during Q3 2022, and the Construction Phase is scheduled to commence during Q4 2022 with project commissioning 11 to 14 months after that.
“Following the company’s disinvestment from coal, we are excited to have signed our first waste to energy PPA that aligns with our strategy of advancing clean energy in the African market,” said Louis Coetzee, Chief Executive Officer of Kibo. The project is the first in a pipeline of waste-to-energy projects under the company’s portfolio, and we are proud to have worked on it with our partners, IGES.”
This PPA will ensure revenue generation for the next ten years, with the potential for significant additional revenue from the sale of heat and other by-products and the ability to expand up to an 8MW facility in 24 to 26 months.