Ncondezi surges on potential Mozambique solar project

Ncondezi Energy updated the market on the review of its integrated Ncondezi 300 MW power project in Tete, Mozambique on Monday, saying it had found potential for a grid-scale solar-plus-battery storage project at the site.

The AIM-traded firm said preliminary studies confirmed the project site enjoyed “favourable” solar conditions, as well as access to the Mozambique grid.

It said there was potential to streamline development and costs through the use of existing project studies, adding that the solar project was feasible without compromising the delivery of the main project.

Ncondezi said the solar project represented a “significant opportunity” to unlock additional value to shareholders.

“Whilst the company continues working closely with its strategic partner, China Machinery Engineering Corporation (CMEC), to gain further clarity on financing for the project, the board has carried out a review of other potential opportunities to unlock shareholder value,” explained chief executive officer Hanno Pengilly.

“Preliminary study work has confirmed that the project site area has strong potential for a solar project plus battery storage with good solar conditions and multiple access points to the Mozambique grid.

“Given the large project concession area, the solar project would be deliverable without compromising the main project.”

In addition, Pengilly said the company confirmed it could use existing project studies to fast-track a development programme, while also leveraging its recent experience in delivering a fully off-grid solar-plus-battery storage system in Mozambique during the fourth quarter.

“The board believes that the solar project brings a unique opportunity to unlock significant value to shareholders and broaden the company's investment appeal.

“Further updates will be made as the development strategy and engagement with key counterparties progresses.”

At 1337 BST, shares in Ncondezi Energy were up 91.67% at 1.15p.