REG - Savannah Energy Plc - Agreement signed for New Renewable Energy Projects

Savannah EnergyAnnouncement

27/05/2022 12:45

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RNS Number : 1136N  Savannah Energy Plc  27 May 2022

27 May 2022

 

--Savannah Energy PLC

("Savannah" or "the Company")

 

 

Agreement signed with the Government of the Republic of Chad for

New Renewable Energy Projects of up to 500 MW

Savannah Energy plc, the British independent energy company focused around the
delivery of Projects that Matter in Africa, is pleased to announce the signing
of an agreement ("the Agreement") with the Ministry of Petroleum and Energy of
the Republic of Chad for the development of up to 500 megawatts ("MW") of
renewable energy projects supplying electricity to the Doba Oil Project and
the towns of Moundou and Doba in Southern Chad, and the capital city,
N'Djamena ("the Projects"). A signing ceremony was held today in N'Djamena,
attended by His Excellency Djerassem le Bemadjiel, the Minister of Petroleum
and Energy of the Republic of Chad, His Excellency Mark Matthews, Ambassador
of the United Kingdom to the Republic of Chad, Sarah Wilson, Deputy Head of
Mission at the British Embassy N'Djamena, Chad, and Andrew Knott, Chief
Executive Officer of Savannah.

Centrale Solaire de Komé

The first Project Savannah has agreed to develop comprises an up to 300 MW
photovoltaic solar farm and battery energy storage system ("BESS") located in
Komé, Southern Chad (the "Centrale Solaire de Komé"). This Project is being
developed to provide clean, reliable power generation for the Doba Oil Project
and the surrounding towns of Moundou and Doba. In doing so, it will displace
existing hydrocarbon power supply resulting in a significant reduction in
CO(2) emissions and provide a supply of clean, reliable electricity on a
potential 24/7 basis to the surrounding towns of Moundou and Doba (which
currently only have intermittent power access). The expected tariff for the
electricity generated from this Project is expected to be significantly less
than that being paid for the current hydrocarbon-based power generation in the
region. At 300 MW, the Centrale Solaire de Komé would be the largest solar
project in sub-Saharan Africa (excluding South Africa) as well as constituting
the largest battery storage project in Africa. Project sanction for the
Centrale Solaire de Komé is expected in 2023 with first power in 2025.

Centrales d'Energie Renouvelable de N'Djamena

The second project covered by the Agreement involves the development of solar
and wind projects of up to 100 MW each to supply power to the country's
capital city, N'Djamena (the "Centrales d'Energie Renouvelable de N'Djamena").
A significant portion of this project is anticipated to benefit from the
installation of a BESS, potentially enabling the provision of 24/7 power
supply. At up to 200 MW, the Centrales d'Energie Renouvelable de N'Djamena
would more than double the existing installed generation capacity supplying
the city and increase total installed grid-connected power generation capacity
in Chad by an estimated 63%. Savannah expects the cost of power from the
Centrales d'Energie Renouvelable de N'Djamena to be lower than existing
competing power projects, which are currently primarily hydrocarbon-based.
Project sanction for the Centrales d'Energie Renouvelable de N'Djamena is
expected in 2023/24 with first power in 2025/26.

Savannah expects to fund the Projects from a combination of its own internally
generated cashflows and project specific debt.

His Excellency Djerassem le Bemadjiel, the Minister of Petroleum and Energy of
the Republic of Chad, said:

"We are delighted to work with Savannah on these two potentially
transformational power projects for Chad. Our country is blessed with a
significant renewable energy resource and we are excited that a leading
British company such as Savannah is seeking to harness this resource to
provide utility scale power to our country. I warmly welcome the projects and
Savannah's entry into the Chadian power sector. We are already engaged to
provide all the support needed for implementing these projects and having the
first power delivered to our population and our industries in line with the
State plan for enhancing the power offering in our country."

His Excellency Mark Matthews, Ambassador of the United Kingdom to the Republic
of Chad, commented:

"I am delighted that a British company, Savannah Energy, is making such a
substantial investment in renewable energy in Chad. Chad has plentiful
resources of renewable energy which, through investments like this, can be
harnessed to develop the economy and improve the lives of Chadians. This is a
further example of UK commitment to Chad."

Andrew Knott, Chief Executive Officer, Savannah Energy, commented:

"I am delighted to announce the Centrale Solaire de Komé and the Centrales
d'Energie Renouvelable de N'Djamena projects. Both of these represent a major
vote of confidence in Chad by Savannah and have the potential to contribute to
a transformative change in the country's GDP over the course of the coming
years, as well as bringing the significant quality of life benefits associated
with access to regularised power to the regions in which the Projects are
situated. The Projects represent one of the largest ever foreign direct
investments in Chad and are believed to the largest ever by a British company.

I would like to thank General Mahamat Idriss Deby Itno, President of the
Transitional Military Council, President of the Republic of Chad and Head of
State; His Excellency Djerassem Le Bemadjiel, Minister of Petroleum and Energy
of the Republic of Chad, and the wider Chadian government  for the
enthusiastic support we have received in relation to making these projects
happen. We look forward to working with the Government and our developmental
finance partners over the course of the coming years as we move through the
feasibility and construction phases of the projects to our intended first
power dates in 2025/26.

Centrale Solaire de Komé and Centrales d'Energie Renouvelable de N'Djamena
are the second and third large-scale greenfield renewable energy projects that
Savannah has announced this year, following on from our announcement of the up
to 250 MW Parc Eolien de la Tarka project in Niger. We expect to announce our
involvement in further large-scale greenfield power projects over the course
of the next 12 months"

 

 

For further information, please refer to the Company's website
www.savannah-energy.com (http://www.savannah-energy.com) or contact:

 

 Savannah Energy                                                                                +44 (0) 20 3817 9844
 Andrew Knott, CEO
 Nick Beattie, Interim CFO
 Sally Marshak, Head of IR & Communications

 Strand Hanson (Nominated Adviser)                                                              +44 (0) 20 7409 3494
 James Spinney
 Ritchie Balmer
 Rob Patrick

 finnCap Ltd (Joint                                                                             +44 (0) 20 7220 0500
 Broker)

 Christopher Raggett

 Tim Redfern

 Panmure Gordon (UK) Ltd (Joint                                                                 +44 (0) 20 7886 2500
 Broker)

 John Prior

 Hugo Rich

 James Sinclair-Ford

 Camarco                                                                                        +44 (0) 20 3757 4983

 Billy Clegg

 Owen Roberts

 Violet Wilson

The information contained within this announcement is considered to be inside
information prior to its release, as defined in Article 7 of the Market Abuse
Regulation No. 596/2014, and is disclosed in accordance with the Company's
obligations under Article 17 of those Regulations.

 

About Savannah Energy:

Savannah Energy PLC is an AIM quoted British independent energy company
focused around the delivery of Projects that Matter in Africa with current
activities in Cameroon, Chad, Niger and Nigeria.

Further information on Savannah Energy PLC can be found on the Company's
website: www.savannah-energy.com (http://www.savannah-energy.com) .

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