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    CBM developer Tlou pens power purchase deal in Botswana

Summary

The agreement covers electricity supplies from the project's initial 10-MW phase.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Africa, Corporate, Contracts and tenders, News By Country, Botswana

CBM developer Tlou pens power purchase deal in Botswana

Botswana-focused coalbed methane (CBM) developer Tlou Energy has signed a power purchase deal with Botswana Power Corp (BPC) for electricity supplies from its Lesedi project, the company said on October 18.

The agreement, which covers the project's first 10-MW phase, "puts the company on a firm path towards development of the Lesedi power project and considerable growth potential," Tlou's managing director Tony Gilby said.

Tlou estimates the Lesedi project to hold 252bn ft3 (7.1bn m3) of proven, probable and possible gas reserves. The company added in its latest statement that it had agreed terms with a potential financier for $10mn of funding for the project's first phase, which it expects to generate that same amount in annual revenues.

"Botswana is currently not meeting power demand from internal generation and is reliant on imported power at an enormous cost. Without sufficient internally produced power, neighbouring countries effectively control Botswana's energy security," Tlou explained. "Tlou plans to start with the supply of power to Botswana followed by expansion across southern Africa where demand for new sources of cleaner energy is very strong."

The company is also looking to generate solar power and produce green hydrogen in Botswana.