“Project construction is set to resume this month with commissioning targeted for June 2021 following the lifting of COVID-19 related force majeure,” said Hanno Pengilly.
() announced the re-mobilisation of construction works at its solar power project in Mozambique.
The project is the maiden commercial and industrial project for Ncondezi Green Power (NGP), the AIM-quoted firm’s wholly owned renewables subsidiary.
It will be a fully off-grid project and is planned to be a 400,000 kilowatts peak solar project with some 912-kilowatt hours of battery storage. Overall, it is targeting some 600 -megawatt hours and 517 tonnes of carbon dioxide savings per year.
The project, the first of its kind in Mozambique, is slated for commissioning in June 2021.
A 15-year fixed price (in US dollars) offtake agreement is in place, with annual price escalations and it is set with contracted revenue of US$3.1mln over the life of the project.
“Today’s announcement reinforces the company’s commitment to the C&I renewable energy sector in Africa,” said Hanno Pengilly, Ncondezi chief executive.
“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, and ABB for the battery pack, solar panels and inverters respectively.”
Pengilly added: “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.”
The NGP subsidiary also reported the signing of a six-month US$500,000 bridge loan term sheet to provide the balance of the funds to complete the project.
It is provided by chairman Michael Haworth, CEO Hanno Pengilly and NED Scott Fletcher, and it will pay a 30% coupon. The lenders have the right to convert the loan into NGP equity, as a 50% coupon, if the subsidiary defaults on repayments.
The loan is subject to finalisation and execution of full form loan agreements. It is targeted to complete in March.
“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,” Pengilly said.