Tlou Energy Limited, an AIM and ASX listed company said it has received a Request for Proposal from the Government of Botswana for the development of up to 100MW of power using CBM.
The company—which is focused on delivering power in Botswana and Southern Africa through the development of coal bed methane (CBM) at its Lesedi CBM project— said the move indicates the government’s commitment to facilitate the development of a unconventional gas industry in the country.
The proposed government power purchase agreement (PPA) will assist in fast‐tracking the development of the gas industry in the country and creates a new market for Tlou’s independently‐certified gas reserves and significant contingent gas resources of ~3.3 trillion cubic feet (3C).
Tlou is one of two companies selected to bid for the development of up to 100MW of power using CBM in Botswana as an Independent Power Producer. The company has now received a detailed Request for Proposal (RFP) from the Ministry of Mineral Resources, Green Technology and Energy Security. The closing date for this tender is 12 July 2017. The RFP requires details of the proposed field development, the installation of power generation facilities and supply of power into the grid in Botswana.
The Botswana Government has developed this initiative to allow companies such as Tlou to develop pilot plants and facilitate the development of their CBM resource to levels which may lead to the supply of gas to the Government owned 90MW Orapa Power Plant, which is situated approximately 150km to the north of Tlou’s Lesedi CBM Project.
It is a requirement of the RFP that all matters are kept confidential. However, the Company will update the market where possible and specifically in relation to completion and submission of the required documentation.
Tlou’s Managing Director Tony Gilby said they are pleased to receive the RFP from the Botswana Government and look forward to providing them with a detailed, compelling and compliant tender for “our pilot power generation project at Lesedi.”
“This is the next step in the path to a binding offtake agreement and is testament to the fact that the Botswana Government remains committed to see CBM power projects developed in Botswana so that CBM can become a long term indigenous source of cleaner energy for the country. Lesedi is a scalable project and being the first company in Botswana to achieve independently certified CBM gas reserves in 2016 as well as the first to receive Environmental Impact Statement approval we are clearly well placed to deliver on our objectives. We look forward to updating the market in due course as we make progress towards fulfilling our vision to become a significant provider of energy in Botswana and the wider region.”