Tlou Energy wins tender for coal bed methane power project in Botswana

• 5 years ago (2019-05-21)
• David Flin

Africa 321 Gas 393

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Tlou Energy has been named as a preferred bidder for the development of a 10 MW coal bed methane fuelled power project in Botswana. The company has announced that it has received written confirmation of its approval in the tender and will now work with the Botswanan Government to finalise all the project agreements.

Tony Gilby, Managing Director of Tlou Energy, said the proposal was “very competitive” and that approval of the tender represents “great progress” for the company. He said: “The effort put in by our team over recent years has been phenomenal, and this result makes it all worthwhile. The company will now progress with additional work on the ground to deliver a gas-to-power solution that can bring significant benefits to the country and to our shareholders.”

Tlou Energy’s proposal submission was for the development of CBM-fired power plants up to 100 MW. It outlined a staged development, starting with 10 MW of power generation to facilitate the success of the downstream project by requiring relatively minimal upfront capital expenditure, thus reducing risk. According to Tlou Energy, this initial 10 MW would be a pilot power generation project, with revenues potentially facilitating rapid future expansion.

Based on the electricity price guide provided by the Botswana Government of about $0.12 per kWh, the 10 MW project could generate gross revenue of about $10 million per year.