Ncondezi Energy Limited Solar Battery Project restart & Director Loan (6549Q)
March 01 2021 - 2:00AM
UK Regulatory
TIDMNCCL
RNS Number : 6549Q
Ncondezi Energy Limited
01 March 2021
News Release
Remobilisation of C&I Solar Battery Storage Project and
Proposed Directors Bridge Loan
1 March 2021: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to announce:
-- its wholly owned renewables subsidiary, Ncondezi Green Power
("NGP"), has remobilised construction works at its maiden
Commercial and Industrial ("C&I"), 400kWP solar and 912kWh
battery storage project in Mozambique (the "Project"); and
-- the signing of a non-binding US$500,000 bridge loan term
sheet between NGP and certain Directors of the Company to finance
the balance of construction costs to commission the Project (the
"Bridge Loan")
Highlights
Maiden C&I Solar & Battery Project
-- Remobilisation of construction at C&I 400kWp solar PV plus 912kWh battery storage project
-- Fully off-grid project, believed to be the first project of its type in Mozambique
-- Target Project commissioning in June 2021
-- Utilising market leading equipment including JA Solar panels and Tesla Power Pack
-- Targeting generation of 600MWh and CO2 savings up to 517t per annum
-- 15 year fixed price offtake agreement, denominated in US$ with annual price escalations
-- Contracted revenues of US$3.1 over the life of the Project
US$500,000 Bridge Loan term sheet
-- Funding split US$50k:US$100k:US$350k between Chairman Michael
Haworth, CEO Hanno Pengilly and NED Scott Fletcher (the
"Lenders")
-- Provides balance of funding required to complete Project construction
-- Fixed 30% coupon payable at the earlier of 6 months or commissioning of the Project
-- Entered into by Company subsidiary NGP allowing the Company
to implement its C&I strategy without diluting shareholders
-- Lenders right to convert the Bridge Loan into equity of NGP
with a coupon of 50% should NGP default on repayments or under
events of default typical for a project of this nature
-- Bridge Loan is subject to finalisation and execution of full
form loan agreements, targeted for completion in March 2021
-- Bridge Loan expected to constitute an AIM Rule 13 related
party transaction and further updates will be provided in due
course
Ncondezi Chief Executive Officer, Hanno Pengilly said : "Today's
announcement reinforces the Company's commitment to the C&I
renewable energy sector in Africa. Project construction is set to
resume this month with commissioning targeted for June 2021
following the lifting of COVID-19 related force majeure. The
Project is using leading technology from Tesla, JA Solar and ABB
for the battery pack, solar panels and inverters respectively.
This is the first of our pipeline of green energy C&I assets
to near completion and is expected to provide near term revenue for
the Company. Although the impact of COVID-19 delayed the Project
delivery timetable, the demand for sustainable energy solutions
that provide increased energy security whilst also reducing costs
has become more robust. Corporates globally are implementing
aggressive net zero emission reduction policies which are outpacing
Government targets by up to 20 years. Ncondezi's early entry into
this sector in 2019 has positioned it to take advantage of this
with what is believed to be the largest fully off-grid solar and
battery storage project in Mozambique. I believe this is an
innovative, new high growth sector which complements our baseload
power project and one in which we can become market leaders in a
relatively short time frame .
A US$500,000 Bridge Loan term sheet has been put in place by
certain of the Company's Directors to provide sufficient capital to
complete construction and commission the Project. The Bridge Loan
will be provided directly to the Company's wholly owned subsidiary,
Ncondezi Green Power, and honours the prior commitments not to
dilute shareholders to progress the Company's C&I
strategy."
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
Ncondezi Energy Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited Scott Mathieson, Edward Thomas, +44 (0) 20 3100
NOMAD & Joint Broker Kane Collings 2000
Novum Securities
Limited +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
Pimlico Advisory
Ltd +44 (0) 777 56 55
Investor Relations Elizabeth Johnson 927
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this Announcement and such information is now
considered to be in the public domain. The person who arranged for
the release of this announcement on behalf of the Company was Hanno
Pengilly, CEO.
About Ncondezi Energy
Ncondezi is an African power development company with an
advanced staged, integrated 300MW thermal coal power plant and mine
project located in the Tete Province, Northern Mozambique.
The Company is focused on providing reliable, affordable and
accessible baseload energy to Mozambique and secure against the
effects of water drought and intermittency of new renewables. This
project supports Mozambique's energy strategy of universal
electricity access by 2030. According to the World Bank, only 30%
of the Mozambican population had access to energy in 2017. The
Ncondezi Project would provide 300MW of reliable and available
power helping to close the infrastructure gap of the region and
serving as a catalyst for economic development.
The power plant will be designed to be equipped with
state-of-the-art emissions controls technologies that will reduce
local air pollutants, minimizing the plant's impact on the
environment and ensuring its compliance with the most stringent
emission standards
In 2019, the Company entered the Commercial and Industrial
("C&I") renewable and battery storage sector and in October
2019 announced its first investment in an off grid solar battery
project. The Company has also secured the right to fund a US$5.5m
C&I project development pipeline in Mozambique through a
Relationship Agreement with a C&I developer. The move into the
C&I solar and battery storage sector offers a significant
opportunity for the Company to complement the existing large-scale
baseload power project and access near-term low-risk annuity income
streams which have significant growth potential.
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