MOZAMBIQUE – African power development company Ncondezi Energy Limited has sold its Mozambican solar and storage-focused outfit for USD 1.3 million in cash, it said.
Mozambique Green Power (MGP), a Ncondezi company that owns a 400-kWp solar and 912-kWh battery storage project for the commercial and industrial (C&I) sector, was sold to Green Energy SPV PLC.
MGP’s portfolio was tied up in exclusivity agreements with Johannesburg-based investor Nesa, through which Ncondezi and Nesa were seeking to set up a joint venture dedicated to solar-plus-storage storage projects in southern Africa’s Commercial & Industrial sector.
These exclusivity agreements were terminated to make way for the sale of MGP to Green Energy SPV, Ncondezi said.
Green Energy is a newly formed company controlled by Ncondezi Energy’s Non-Executive Director Scott Fletcher.
The transaction with the buyer was closed and proceeds from the sale will be used to repay a bridge loan, which is due on December 7, 2021.
The remainder of the amount, standing at some US$650,000, will be used for general working capital purposes.
Non-Executive Director Aman Sachdeva said that: “Following the strategic review we launched in June 2021 and in an increasingly challenging post COP26 environment, selling the [commercial and industrial] subsidiary allows the company to fully focus on progressing the company’s main project, the Ncondezi Project with our strategic partner, China Machinery Engineering Corp and we are working on finalising the tariff as soon as possible.”
The company can now focus on its main project, the integrated 300-MW coal-based thermal power plant and mine project in northern Mozambique, Sachdeva said.
The renewable energy subsidiary comprises a solar energy and battery storage project and was Ncondezi Energy’s first commercial and industrial project.
In August 2021, Ncondezi has raised a total of £600,000 through a placing backed by major shareholder Scott Fletcher.
The fundraise came just days after Chinese partner CMEC committed to signing the EPC contract on their Mozambique-based power plant project.
Net proceeds from the placing were used for general working capital purposes and development expenditure at the 300MW Ncondezi power station project in Mozambique.
Hanno Pengilly, Ncondezi’s chief executive, has also agreed to buy shares with any bonuses paid to him in 2021.
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