Continental Focus, International Reach

Tlou Sees First Power from CBM

Wednesday, June 21, 2017

Tlou Energy saw first power delivered from its CBM project in Botswana. First power was achieved following the delivery and installation of a gas generator at the Selemo project area of the Lesedi CBM project.

Power required to run pumps and metering at the Selemo pilot to date has been supplied solely from diesel generators. Tlou’s operations team has now installed a gas generator to replace one of the diesel generators. Rather than flaring gas produced from the Selemo pilot wells, it can now be redirected to the gas generator. Using this indigenous gas provides a savings to the Company due to the reduced diesel requirement, effectively ‘first gas monetization’. Tlou plans to replace another diesel generator in the near term which would provide further savings on diesel costs.

This marks a significant milestone for the company as it is the company’s first power generation from its CBM gas field and the first power generation from CBM in Botswana. It also provides evidence of the ability to generate power from Tlou’s gas.

In addition, the power generated from the CBM allows Tlou to save funds previously spent on diesel fuel to generate its power. The Cummins G8.3 generator can supply up to 60 kVA of power and has been customized to run on a small portion of the gas currently being produced at the Selemo pilot which would otherwise be flared. It is expected that the conversion of generation from diesel to gas will initially reduce the company’s diesel requirement by approximately 50,000 liters per year. These savings should grow with time given that a second gas to power generation unit is planned to be installed.

Tlou’s Managing Director Tony Gilby said “First Gas-to-Power via CBM in Botswana is an extremely significant milestone for the Company and in effect a proof of concept of ‘first gas monetization’.  This is the first power generated from CBM in the country and this achievement reinforces our view that CBM Gas-to-Power is achievable in Botswana using gas from the Lesedi Project.  CBM gas is a cheaper and cleaner alternative to diesel generation and is significantly cleaner than coal fired power generation.”


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