Solar & Battery Storage Project Update
Solar & Battery Storage Project Update
9 April 2020: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) provides an update on its Commercial and Industrial ("C&I") solar and battery project (the "Project") in Mozambique following the effects of COVID-19.
· Project construction put on hold pending further clarity on the impact of COVID-19 and lifting of travel restrictions
· Force majeure notice issued by Project offtaker due to inability to provide site access for construction at this time
· Q2 2020 target commissioning timeframe still achievable should restrictions ease in May 2020 as per current Government guidance
Ncondezi Chief Executive Officer, Hanno Pengilly said: "Our primary focus in these unprecedented times is to ensure the health and safety of our employees, partners and clients. Putting the Company's solar and battery project on hold whilst the impact of COVID-19 is better understood is a necessary action, ensuring that we adhere to Government guidelines for reducing the spread of the virus.
The Company is working closely with all parties involved in the Project. All major equipment is in secure storage facilities ready for future deployment when the restrictions are lifted. In the meantime we do not envisage undertaking further construction costs until the force majeure notice has been removed.
The Company believes that the opportunity to replace existing energy solutions with a stable power supply that reduces emissions and lowers the cost of energy will become increasingly more important as C&I companies look to ensure security of supply post the COVID-19 crisis.
Separately, the work programme for the Company's 300MW Ncondezi Project remains on track and a more detailed update on key milestones for 2020 is expected to be released this month."
For further information please visit www.ncondezienergy.com or contact:
+27 (0) 71 362 3566
Liberum Capital Limited
Andrew Godber, Edward Thomas, Kane Collings
+44 (0) 20 3100 2000
Novum Securities Limited
+44 (0) 20 7399 9427
Pimlico Advisory Ltd
+44 (0) 777 56 55 927
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. If you have any queries on this, then please contact Hanno Pengilly, Chief Executive Officer of the Company (responsible for arranging release of this announcement) on +27 (0) 71 362 3566.
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 April 2019 the Company announced a proposed Joint Venture with GridX Africa Development to enter into the Commercial and Industrial ("C&I") renewable and battery storage sector and in October 2019 announced their first investment in an off grid solar battery project. 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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