- Tlou Energy Limited is an Australian (ASX) listed company focused on delivering power in Botswana and southern Africa through the exploration and development of gas and solar power.
- The company has announced that they have executed a PPA and Connection Agreement for their Lesedi gas to power project in Botswana.
- The Botswana government confirms intention to fast-track commercial development of the gas industry with negotiations on the 100MW tender process to commence in February 2021.
A pilot Power Purchase Agreement (PPA) has been fully executed between Tlou Energy Limited and Botswana Power Corporation (BPC) for the first 2MW of power from the Lesedi project. A grid connection agreement has also been signed which enables the injection of power into the BPC grid. These are key agreements that will facilitate development of the power project and the sale of first power.
In addition, Botswana’s Ministry of Mineral Resources Green Technology and Energy Security (“MMGE”) has provided confirmation that negotiations on a larger PPA are due to commence in February.
Tlou’s Managing Director, Mr Tony Gilby commented, “It is great to see that Botswana is open for business and the Government is motivated to get the gas industry up and running. Tlou plans to start development of the Lesedi project as soon as possible and confirmation of the Governments enthusiasm to provide the necessary support to ensure commercial development of CBM is very well received.
In addition, we have also recommenced negotiations with Botswana based project financiers this month as we aim to close a deal for funding as soon as possible.
Botswana recently released their Integrated Resource Plan (IRP) which includes an allocation of 250MW for coal bed methane gas to energy projects. Read more
Tlou Energy TOU (ASX) is currently trading at A$0,052 at the time of publication.
Author: Bryan Groenendaal