THE commissioning of the new power generating set for Mast Energy, the UK subsidiary of JSE-listed Kibo Energy, is now under way at the company’s Pyebridge site.
Mast Energy has said it was exploring avenues for further capital expenditure to fund its other power-generation projects that are under development or ready for construction.
The commissioning of the latest Pyebridge genset will provide power production impetus to the company.
“The final remaining step in the process is the recommissioning of the new genset, which is currently under way,” the company said yesterday.
It added that it expected the overhaul of the genset to be completed and for it to commence commercial operational running and revenue generation by the end of this month.
This follows the receipt of the replacement genset long-block from the Austrian supplier.
The existing genset had since been disconnected and craned out of the site and transported to Cooper Östlund’s workshop.
“Following completion of the rebuild, the refurbished genset was transported back to the Pyebridge site, and successfully craned back into the facility,” Kibo said.
Two other existing gensets at the Pyebridge site have remained operational and will continue to generate revenue for the company.
Pyebridge has continued to receive its current Capacity Market contract’s associated annual gross profit margin income of £308 000 (R8.9 million).
It had also secured additional Capacity Market contracts, ensuring its minimum annual gross profit margin income.
Mast is expecting to apply for the maximum 15-year term and capacity T-4 Capacity Market contract.
Mast CEO Pieter Krügel said the company was “looking forward to completing the overhaul work within the expected timeline, and once done it will increase the Pyebridge site’s income generation” substantially.
“We are looking forward to updating the market with further progress across the board in due course,” he said.
The Pyebridge Capacity Market contracts' gross profit margin income payments are in addition to its electricity generation trading revenue generation.
The company intends to add a minimum guaranteed gross profit margin income floor component to its power purchase agreements.
Currently, Mast expects the power purchase agreement floor value to be at least around £50/kW/annum although this is subject to usual conditions such as assessment and agreement with Statkraft.
This would equate to a minimum annual gross profit margin income of £405 000 for the company in addition to the site’s Capacity Market contracts’ income payments.
These longer-term Capacity Market contract and the power purchasing agreement floor are expected to be implemented once the Pyebridge site’s planned overhaul work programme has been completed.
This would “provide further enhanced and longer-term minimum guaranteed gross profit margin income” to the site.
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