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Wednesday, October 28, 2015
Coal Petroleum has commenced with the development of a 20,000 bpd coal-to-liquids (CTL) co-generation and fertilizer project in Botswana. The CTL project will be located in Francistown, North East District, Botswana.
“The successful completion of this Project will provide a foundation for a national move towards energy security and supporting continued economic growth in Botswana,” said Dr Brendon Hausberger from Holland & Hausberger, who are Coal Petroleum’s Technical Advisors.
The project will be run over three phases until 2020 and is expected to deliver up to 304 MW power to the Botswana national grid. The intention is to ultimately scale the facility to a capacity of 50 000 bpd.
The project has been in the works for more than 18 months, during which a number of studies, including a baseline technical and economic assessment study, was conducted. The study demonstrated a technically viable and lucrative business case.
The proposed project site in the Dumela Industrial Area has excellent infrastructure access; this includes power and water access to the site as well as road, rail, and housing facilities for the execution of the project and ongoing operations. Coal Petroleum has secured the key technology licenses necessary for the project.
The Project will bring a total investment of over $4.2 billion to Botswana and if plans pan out as expected, it will enable the country to become an energy exporting country. It will also contribute to job creation in Botswana, creating upwards of 4,000 permanent local jobs as well as thousands of temporary jobs; skills development will also be another benefit for the people of Botswana.
The project is owned and funded by Coal Petroleum (Pty) Ltd and Kumvest (Pty) Ltd, who are private and unlisted companies in Botswana and South Africa respectively. Technical partners supporting the project include Holland & Hausberger (Pty) Ltd and a number of specialist technology vendors in that role. The project is being executed through a Coal Petroleum Hong Kong subsidiary vehicle established for the purpose of execution of this project.
The project will be able to provide fertilizer offtake to neighboring states and discussions are underway in respect of this offtake. With the later envisaged expansion stages of the project, these will be expanded to include the provision of exporting fuel to Botswana’s neighbors.
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