Ncondezi Green Power (NGP), the wholly owned subsidiary of AIM-listed  Ncondezi (LON:NCCL) has announced the re-mobilisation of construction works at its 400kWP solar & 912kWh battery storage project in Mozambique. The off-grid project is planned to be commissioned in June this year. The project, which uses technology from Tesla, JA Solar and ABB, is supported by a six month US$500,000 bridge loan from certain Directors of NGP to provide the balance of the funds to complete the project.

A short video overview of the company is provided below and the full announcement follows:

Video: Ncondezi Investors Overview

Announcement in full:

Remobilisation of C&I Solar Battery Storage Project and Proposed Directors Bridge Loan

Ncondezi Energy Limited (“Ncondezi” or the “Company”) (AIM: NCCL) is pleased to announce:

• its wholly owned renewables subsidiary, Ncondezi Green Power (“NGP”), has remobilised construction works at its maiden Commercial and Industrial (“C&I”), 400kWP solar and 912kWh battery storage project in Mozambique (the “Project”); and
• the signing of a non-binding US$500,000 bridge loan term sheet between NGP and certain Directors of the Company to finance the balance of construction costs to commission the Project (the “Bridge Loan”)

Highlights

Maiden C&I Solar & Battery Project

• Remobilisation of construction at C&I 400kWp solar PV plus 912kWh battery storage project
• Fully off-grid project, believed to be the first project of its type in Mozambique
• Target Project commissioning in June 2021
• Utilising market leading equipment including JA Solar panels and Tesla Power Pack
• Targeting generation of 600MWh and CO2 savings up to 517t per annum
• 15 year fixed price offtake agreement, denominated in US$ with annual price escalations
• Contracted revenues of US$3.1 over the life of the Project

US$500,000 Bridge Loan term sheet

• Funding split US$50k:US$100k:US$350k between Chairman Michael Haworth, CEO Hanno Pengilly and NED Scott Fletcher (the “Lenders”)
• Provides balance of funding required to complete Project construction
• Fixed 30% coupon payable at the earlier of 6 months or commissioning of the Project
• Entered into by Company subsidiary NGP allowing the Company to implement its C&I strategy without diluting shareholders
• Lenders right to convert the Bridge Loan into equity of NGP with a coupon of 50% should NGP default on repayments or under events of default typical for a project of this nature
• Bridge Loan is subject to finalisation and execution of full form loan agreements, targeted for completion in March 2021
• Bridge Loan expected to constitute an AIM Rule 13 related party transaction and further updates will be provided in due course

Ncondezi Chief Executive Officer, Hanno Pengilly said:

“Today’s announcement reinforces the Company’s commitment to the C&I renewable energy sector in Africa. Project construction is set to resume this month with commissioning targeted for June 2021 following the lifting of COVID-19 related force majeure. The Project is using leading technology from Tesla, JA Solar and ABB for the battery pack, solar panels and inverters respectively.

This is the first of our pipeline of green energy C&I assets to near completion and is expected to provide near term revenue for the Company. Although the impact of COVID-19 delayed the Project delivery timetable, the demand for sustainable energy solutions that provide increased energy security whilst also reducing costs has become more robust. Corporates globally are implementing aggressive net zero emission reduction policies which are outpacing Government targets by up to 20 years. Ncondezi’s early entry into this sector in 2019 has positioned it to take advantage of this with what is believed to be the largest fully off-grid solar and battery storage project in Mozambique. I believe this is an innovative, new high growth sector which complements our baseload power project and one in which we can become market leaders in a relatively short time frame.

A US$500,000 Bridge Loan term sheet has been put in place by certain of the Company’s Directors to provide sufficient capital to complete construction and commission the Project. The Bridge Loan will be provided directly to the Company’s wholly owned subsidiary, Ncondezi Green Power, and honours the prior commitments not to dilute shareholders to progress the Company’s C&I strategy.”