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Wednesday, January 11, 2017
The government of Botswana has sent Tlou Energy a Request for Proposal (RFP) for the development of up to 100 MW of coalbed methane (CBM) power. According to Tlou, the RFP indicates the government’s commitment to facilitate the development of a CBM industry in Botswana.
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 Tcf (3C).
Tlou is one of two companies selected by Ministry of Mineral Resources, Green Resources and Energy Security to bid for the development of up to 100 MW of power using CBM.
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 tender closes on in July 2017.
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 90-MW Orapa Power Plant.
Tlou’s Managing Director Tony Gilby said, “We 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.”
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