Tlou Energy Limited, the ASX, AIM and BSE listed company focused on developing gas-to-power projects in southern Africa using coal bed methane (“CBM”) natural gas from its gas field in Botswana, has submitted its response to the Request for Proposal from Botswana’s Ministry of Mineral Resources, Green Technology and Energy Security for the development of up to 100MW of CBM fuelled pilot power plants in Botswana.
Tlou’s proposal involves the development of a CBM Gas-to-Power project in stages with an initial development of up to 10MW. According to the company, the submission will be assessed based on eligibility and technical, and funding criteria. An indicative date for receipt of a response from the Ministry is not yet known.
Tlou’s Managing Director Tony Gilby said they were delighted that the re-submission of the tender has been completed and look forward to a response from the Ministry. He added that the company has detailed what they believe is a very compelling and robust proposal.
“If successful this project can help start a new CBM industry in Botswana, create further employment, provide a much-needed local clean power source, and bring a return for Tlou investors,” Gilby revealed.
“Tlou is well placed, as the leading CBM company in the region, to be able to deliver the project outlined in the submission and we look forward to working closely with the Government to make it a success. I would like to thank all our staff and consultants for their time an effort working on this project. Our drilling program is due to commence very soon and I will provide an update on this in the very near term.”
Initial gas-to-power project
Tlou is planning a gas-to-power project whereby gas from its Lesedi CBM project will be used for power generation, and this power sold into the power market within Botswana and/or across the Southern African Power Pool (SAPP).
An initial development of up to 10MW is planned. This will start with the first 2MW of power which can be expanded as further drilling is conducted and additional gas becomes available. With significant gas reserves already in place, the Company can readily expand upon successful implementation of the initial project.
The Lesedi CBM project will require connection to the local power grid. This connection is planned to be made at the town of Serowe, approximately 100 Km from the Lesedi CBM project. A draft transmission line route has been determined with negotiations ongoing with the regional and local land boards and the environmental impact assessment approval process continuing.
In addition to selling power through the RFP process, should that be successful; the Company is also in discussions with groups in Europe and China with interests in developing Compressed Natural Gas or mini-LNG facilities. The development of a fertilizer plant using Tlou’s gas has also been proposed. These discussions and proposals are at an early stage so the viability of these potential projects is uncertain at present.