Benga power station (Kibo Energy)

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Benga power station (Kibo Energy) is a power station in the pre-permit stage in Songo Dist, Tete, Mozambique. It is also known as Benga Power Plant Project, BPPP, Benga Independent Power Project (BIPP).

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Benga power station (Kibo Energy)	Songo Dist, Tete, Mozambique	-15.5, 32.5 (approximate)

The map below shows the approximate location of the power station.

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Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year	Retired year
Unit 1	pre-permit	coal - unknown	150	unknown	–	–
Unit 2	pre-permit	coal - unknown	150	unknown	–	–

Table 3: Unit-level ownership and operator details

Unit name	Owner
Unit 1	Kibo Energy PLC [65.0%], Termoeléctrica de Benga SA [35.0%]
Unit 2	Kibo Energy PLC [65.0%], Termoeléctrica de Benga SA [35.0%]

Project-level captive use details

• Captive industry use (heat or power): iron & steel
• Captive industry: Power

Project-level coal details

• Coal source(s): Benga coal mine

Background

In February 2019, it was reported that Kibo Energy and its joint venture partner, Termoelectrica de Mozambique de Benga S.A. (Termoeléctrica), had completed a Definitive Feasibility Study (DFS) to construct and operate a 150 to 300 MW coal-fired power plant in Tete province, called the Benga Independent Power Project. Kibo said a Memorandum of Understanding (MOU) with Mozambican state-owned electric utility, Electricidade de Mocambique (EDM), had been renewed to advance the financing, construction and operation of the project. According to World Coal, "Benga is located in the Tete Province in direct vicinity of various thermal coal producers, which could be a source of feedstock."

In May 2020, Kibo Energy said it had signed a binding term sheet to supply 200 MW of energy from its in-development Benga power plant to Baobab Resources’ Tete Steel and Vanadium (TSV) project in Mozambique. The deal was subject to reaching final agreement on a PPA. In December 2020, Kibo Energy said it had submitted a draft PPA for approximately 200 MW from the Benga project to the Baobab Tete Steel project.

In April 2021, Kibo Energy PLC said it had made progress on the project, including a technical and business workshop with EDM to finalise a power purchase agreement. During the meeting several documents were presented and discussed with EDM, including the final optimised DFS and summary of an updated draft financial model.

The updated DFS required by authorities was complete. In addition to evaluating the feasibility of constructing a 350 MW coal-fired power plant, it also included "an environmental and impact assessment (near completion) and a grid integration study (completed)." The companies were holding a total of 404 hectares of land, which included the initial five-year lease title over 59 hectares of unimproved land that was expected to be extended for 50 years once a power plant was under construction as well as the recently added c. 345 hectares.

In December 2020, the project details still appeared on Kibo's website, but under a "Waste to Energy Projects" heading that may have been intended to be deleted (image annotation noted: "Waste to Energy projects current link to be cancelled.")

Given the 2021 activity on the proposal, the power station was considered in development as of December 2021. Kibo's Q4 2021 Corporate Presentation describes their ongoing intention to dispose of the project. Land rights for the project were secured, water options were in place, three PPAs were in preliminary stages, and a mutually binding Term Sheet to secure coal supply for the life of plant were in place. However, Kibo will not be moving forward with development of the project, and it may be shelved should it not be taken over by another purchaser.

Kibo Energy: Disposal plans

In Kibo Energy's "Half-Year Results to 30 June 2021," the Chairman's Statement described a pivot in strategy:

"Following a shift in international climate policies we recently announced a significant pivot in our strategy. We have decided to focus on the acquisition and development of a portfolio of sustainable, renewable energy assets and dispose of, or reposition, our fossil fuel utility projects. (...) It has become increasingly apparent that the development and funding of large-scale coal – fired utility projects such as our MCPP, Benga and Mabesekwa Projects, is becoming increasingly challenging and especially for small companies like Kibo. This does not change our view that our focus should remain on the development of sustainable energy opportunities. It is in this context that Kibo has decided to refocus on smaller scale renewable energy projects, initially in countries such as the UK and South Africa, where the market opportunities, government support and technical innovation are rapidly evolving."

"(...) we have developed significant inherent value in our large-scale utility projects over the last few years supported by our ownership interests in two large coal deposits (MCPP and Mabesekwa). We are committed to structuring our disposal plans for these projects to ensure that our shareholders retain the benefit of any future upside potential from the development of these projects. Advisers have been engaged in order to retain maximum value in the projects for Kibo whilst making them attractive for acquisition, funding and construction by potential purchasers."

Kibo Energy's website (December 2021) said: "Kibo holds interests in three utility-scale clean coal assets/power projects. The Company intends to implement a disposal strategy for these assets that will realise value for shareholders as it believes that a larger entity would be better placed to take them to production." The projects included Benga power station (Kibo Energy) in Mozambique, Mbeya Coal to Power Project ​in Tanzania, and Mabesekwa Export Independent Power Plant in Botswana.

As of June 2022, the power station was still described by Kibo as a "project identified for disposal".

A corporate presentation from Q4 2022 listed "BPPP", presumed to be Benga Power Plant Project, under a category titled "Disposal of Fossil Fuel-based Projects". An operational update from February 2023 also noted work to "[e]xit coal by a disposal process of its coal assets". The same operational update mentions "two remaining 300MW projects in the Kibo portfolio (i.e. MCIPP and Benga)" in a section on the feasibility of producing biofuel.

In their 2022 annual report, published in June 2023, Kibo Energy mentioned its Benga project and partnership with Termoeléctrica de Benga, stating: "In order to maintain its initial participation interest Kibo is required to ensure funding of a maximum amount of £1 million towards the completion of a Definitive Feasibility Study, however this expenditure is still discretionary. Other than the commitments and contingencies noted above, the Group does not have identifiable material commitments and contingencies as at the reporting date."

Financing

In April 2019, Kibo hired Wimmer Financial to be its financial adviser for most of Kibo’s projects, including the Benga power plant.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.