HomeNewsPartnership for Plastic Syngas Power Plant Project in South Africa

Partnership for Plastic Syngas Power Plant Project in South Africa

Kibo Energy PLC, a multi-asset energy development company positioned to address acute power deficits in Sub-Saharan Africa and the UK, has announced a partnership with Industrial Green Energy Solution( IGES) for the development of a new 2.7 MW plastic syngas power plant project in South Africa.

Kibo Energy will own 65% shares in the project, whose overall goal is to generate greener energy derived from non-recyclable plastics, while IGES will own the remaining 35%.  The waste items will be turned into crucial clean energy after being subjected to high temperatures to manufacture high-grade syngas – a process that drives engines to generate electrical and thermal energy.

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Following the company’s coal divestment, Kibo Energy CEO Louis Coetzee expressed his delight at having signed its first waste-to-energy PPA, which coincides with the company’s aim of pushing sustainable energy in the African market. The plastic syngas power plant project in South Africa is the first in a series of waste-to-energy initiatives in the Firm’s pipeline, and the company is happy to have collaborated on it with its partner, IGES.

Implementation and expectations of the project

The project, the financial close and construction of which is scheduled respectively for Q3 and Q4 2022,  will be developed by Sustineri Energy. Lesedi, a South African (Level Three B-BBEE) Engineering, Procurement and Construction (EPC) company has been appointed as the projects Engineering, Procurement, and Construction (EPC) and Operations and Management (O&M) contractor.

The plastic syngas power plant project in South Africa is expected to be commissioned 11 to 14 months from the day the construction works begin. An Industrial Business Park Developer will run the power plant, which will provide baseload power over a 10-year take-or-pay Power Purchase Agreement (PPA). The thermal energy generated may be sold directly to industrial park clients.

Expectations for the plastic syngas power plant project in South Africa

The plastic syngas power plant project in South Africa is projected to make a substantial contribution to the energy industry. It will also play an essential role and contribute to the progress of sustainable energy generation by employing selected and particular high calorific plastic as feedstock, which can no longer be disposed of at waste sites under current regulations. By supplying alternate baseload power, the project will also help to alleviate South Africa’s energy supply issue.

The 2.7 MW plastic syngas power plant project in South Africa is estimated to bring in US$ 25.7M in income.

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