Magnum Gas & Power Limited said it has signed a memorandum of understanding (MOU) with Sky Blue Capital Proprietary Limited (Sky Blue) with the two parties agreeing to form a new company (Newco) in Botswana seeking to develop Social Housing projects with their own independent power supply (integrated Gas and Solar micro-grid).
According to Magnum, such projects would help Botswana develop affordable, clean and sustainable communities with reliable power supplies, whilst also generating an offtake for Magnum’s gas, integrating solar power generation and utilising Sky Blue’s expertise in Net Zero Energy Developments.
The Newco aims to develop Botswana’s first off grid, net zero energy residential community, envisioned to consist of 2,000 dwelling units per Sky Blue Capital’s development model. Net Zero Energy Buildings and Developments are designed to produce as much energy as they consume, by combining demand side energy reductions with on-site power generation.
The company is to be registered in Botswana as an Independent Power Producer (IPP) for purposes of supplying power to the community and charging homeowners for electricity via a prepaid metering system.
The purpose of the Newco is also to secure the land for development, manage the Government relations and project approvals, assist in arrangement of project financing, and provide access to natural gas resources as they are proven. This MOU is not legally binding. Magnum and Sky Blue intend to enter into a more definitive agreement prior to September 1, 2016.
Managing Director Trent Wheeler said Magnum is committed to helping Botswana with its energy needs as they believe energy is a critical pillar to the growth and development of the country and people.
“Such projects will help unlock Botswana’s domestic gas and solar resources. Integrated developments such as this provide so many benefits to so many stakeholders,” Wheeler said.
“Supporting community development by providing access to affordable homes and associated infrastructure (Parks, Medical, Schools & Shops) with reliable, clean and sustainable power, whilst looking after the environment.”
Sky Blue is a rapidly expanding private equity company focusing on real estate investment and development in Africa with special expertise in Net Zero Energy Development. Sky Blue has offices in San Francisco, California, Johannesburg, South Africa and Abidjan.