Botswana OKs Tlou’s 50-MW Project

Australia and AIM-listed Tlou Energy said July 5 that its 50-MW proposed power project has been approved by the Botswana government.

Tlou said it has been selected to develop a power plant fed by coalbed methane (CBM) at its 100%-owned Lesedi CBM project by Botswana's Public Procurement and Asset Disposal Board (PPADB). It is awaiting full details from Botswana’s Ministry of Mines Energy and Water Resources (MMEWR) but says the project will “create a ready market for Tlou's independently certified contingent gas resources of some 3.3 trillion ft³.”

The application process involved approval by Botswana's cabinet, after which it was reviewed by the PPADB, which confirmed the successful outcome. Once full details from MMEWR are received, Tlou said it will commence work on a detailed proposal for the supply of CBM power, including negotiations on the terms of an off-take agreement, network access and project funding.

Gabaake Gabaake, Tlou’s acting managing director, said,"A 50-MW project is five times larger than expected and a fabulous result for the company. Importantly it provides more certainty to our investment case to increase our power output as we develop our field.”  Significant amounts of power are imported from South Africa, adds Tlou, due to still unsuccessful remedial work taking place at Botswana's Morupule A and B coal-fired power stations.

The map below shows the proposed design of the 50-MW Orapa CBM-fuelled power plant.

Mark Smedley | www.naturalgasafrica.com