Ncondezi Energy Limited EPC Contract Target Signature Date Agreed (3895J)
August 23 2021 - 2:00AM
UK Regulatory
TIDMNCCL
RNS Number : 3895J
Ncondezi Energy Limited
23 August 2021
News Release
EPC Contract Target Signature Date Agreed
23 August 2021: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to announce a target signature
date for the Engineering, Procurement and Construction ("EPC")
power plant contract for the integrated Ncondezi 300MW coal fired
power project and coal mine in Tete, Mozambique (the "Project") has
been agreed with China Machinery Engineering Corporation ("CMEC")
with signature reverted for during Q3 2021 .
The Company is also pleased to announce that a number of funding
proposals are being considered to ensure that it is adequately
capitalised to complete the next phase of the Project's de-risking
milestones.
Ncondezi Chief Executive Officer, Hanno Pengilly said: "The
Company remains confident in the Ncondezi Project's strong merits
which include a focus on providing competitively priced power, both
in Mozambique and the wider region, in combination with the use of
the latest emission control technologies to minimise the plant's
impact on the environment and ensure compliance with the most
stringent emission standards.
This confidence is reinforced by agreement of a target signature
date with CMEC for the power plant EPC contract of during Q3 2021,
which is the main construction contract for the Project and will
represent a material de-risking event.
Whilst Project deliverables in 2021 have been slower than
expected, the Company, with ongoing support from CMEC, has worked
diligently to ensure the Project is properly positioned for
success. COVID-19 lockdowns and increasing scrutiny on the
rationale for new fossil fuel power generation have presented added
challenges this year, however the Company believes that the Project
is sufficiently advanced and has the necessary support to
effectively navigate them and unlock value through delivery of key
milestones before year end.
To ensure we are adequately capitalised for the next phase of
the Project, we are currently considering a number of funding
solutions and are confident a solution will be finalised
shortly.
We look forward to providing further updates in due course."
CMEC Project Director, Zhang Daguang said: "CMEC remains
committed to working with Ncondezi to further progress the Project,
and continues to progress its internal investment process and
engagement with the Chinese Government and financing institutions.
CMEC is also pleased to report positive progress and support from
all parties involved, which has allowed for a commitment to
finalise the power project EPC agreement with Ncondezi this
quarter."
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
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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