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Kibo Energy PLC on Wednesday said that its subsidiary, Mast Energy Developments PLC, has finalised a joint venture agreement with an institutional investor-led consortium led by Seira Capital Ltd. Kibo is a Galway, Ireland-based company with energy projects in Africa and the UK, while Mast Energy is a London-based multi-asset operator in the flexible power market. Shares in Kibo were up 18% at 0.065 pence in London on Wednesday afternoon, while shares in Mast Energy jumped 33% to 2.22 pence each. Under the joint venture, the consortium will inject all required investment capital with an initial expected total investment of £5.9 million. There is no funding contribution required from Mast Energy. Mast Energy will instead provide the required portfolio of low-carbon flexible gas generation peaker plants, totalling a combined generation output of up to 33 megawatts to be developed and/or acquired within the next year. The venture also commits the two parties to finalise terms on a second joint venture, which would increase the expected total investment to £31 million. ‘The JV provides the company with both a significant cash injection and stake in a portfolio of assets totalling an expected 33 megawatts that will be fully funded, constructed, in production and income-generating in the next 12 months. [Mast Energy’s] share of income from the JV portfolio revenue, as well as its five-year MSA fee, will provide the company with a crucial long-term recurring income stream,’ said Mast Chief Executive Officer Pieter Krugel. The five-year management services fee is calculated as £7,200 per megawatt per annum. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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