Page 7 - AfrElec Week 42 2021

AfrElec COAL-FIRED GENERATION AfrElec

Botswana signs 10-MW

power deal with Tlou

BOTSWANA THE Botswana government has agreed with the first supply under the contract in the next
Tlou Energy to buy 10 MW of electricity gener- 48 months. Tlou’s CBM licences are estimated
ated from coal-bed methane (CBM). to hold about 41bn cubic feet (1.16mn cubic
Tlou Energy has signed a power purchase metres) of natural gas and gas wells in the area
agreement (PPA) with state-owned utility the have already been tested operationally.
Botswana Power Corporation (BPC). The “Since our establishment in 2009, our inves-
deal is for the supply of 10 MW over a period tors have put in $44mn [to] studying the via-
of five years and while financial terms were not bility of CBM and that commitment is because
disclosed, Tlou Energy has said it anticipates they believe the gas’ development is possible in
revenues of $10mn per year annually from the Botswana.
contract. “We know the funds Botswana is spending
The southern African country is seeking to in importing power and if that money could be
improve its energy security and diversify away invested into the economy, one wonders what
from heavily polluting coal. we could achieve in terms of employment and
Speaking at the signing of the PPA, Bot- generation of wealth,” Gabaake said.
swana Mineral Resources, Green Technology Tlou also wants to use its Lesedi CBM-to-
and Energy Security Minister Lefoko Moagi power (GTP) project to serve as a springboard
revealed that the government had committed for blue and green hydrogen production.
itself to procuring up to 100 MW of CBM from Tlou said in May that it intended to develop
local developers in the next few years, as part of a “hydrogen strategy” to complement the GTP
a shift towards renewable energy. scheme. This strategy should be relatively easy
“The CBM resources still remain largely to implement, it said, since the company has
unexplored and thus not yet available for base- already secured some of the assets and admin-
load generation,” he said. istrative permits it will need to move into hydro-
“However, I am pleased to inform you that gen production.
further prospecting work is on-going to prove “A hydrogen strategy would benefit from
commercial viability of CBM, with method of Tlou’s extensive approvals secured to date,
extracting being one of the main areas of focus.” including environmental, gas and solar gen-
Tlou Energy’s country director, Gabaake eration licences, access to land and established
Gabaake, said the company expected to provide in-country operational expertise,” it explained.™

Week 42 21•October•2021 www. NEWSBASE .com P7