Page 23 - issue 25

In The News 23

Tlou Energy has sufficient coal bed methane

(CBM) gas reserves at its Botswana Gas-to-

Power project

• It is ready to start producing gas fired electricity in 2020.

apidly growing gas production Botswana Power Corporation.“Once
and electricity generator, Tlou operational, the project provides a benefits for Botswana in creating energy
REnergy Limited, has announced scalable template for growth across the security by removing the need to import
it has sufficient gas reserves in place for portfolio,” the Tlou Energy CEO assured expensive power, developing a new
the initial phase of its much-anticipated investors.Tlou Energy holds a Mining industry, generating further income
Gas-to-Power project. This phase would Licence, received from the Government for government through royalties, and
involve the supply of up to 10MW of in 2017 for development of its Lesedi creating employment and training in
power into the national electricity CBM Project. The Company also has two technology for the locals.
grid, potentially generating an annual other exploration projects, the ‘Mamba’
revenue of around P111 million. and ‘Boomslang’ projects, also focused Minimum footprint is also used in the
on producing clean natural CBM gas in CBM extraction process which allows
Once all approvals are in place Botswana. agricultural land use to continue
Tlou Energy could start the supply alongside Tlou’s CBM operations. The
of electricity to Botswana Power The three projects cover an area of Company works very closely with
Corporation as early as 2020. approximately 9,300 km2. Tlou Energy farmers and support local communities
is one of the leading CBM companies in to ensure that the project is a valuable
“We have achieved a number of the SADC region and the company has resource both economically and socially
milestones and are now at a watershed plans to expand significantly. A 300MW for its stakeholders. If all approvals and
moment. Investors believe in the project could be capable of generating funding is in place, during 2020, Tlou
project and remain optimistic that the annual revenue of around P3.3 billion Energy plans to commence construction
project will be a huge success and can from the sale of electricity. of its Gas-to-Power project including
create many benefits for Batswana construct of transmission lines, a central
including long term sustainable direct “Tlou Energy’s overview is that its processing facility and installation of
and indirect employment”, Tlou operations are stable, in an excellent generation assets. Also, with further
Energy’s Anthony Gilby, who is the jurisdiction and the company has exploration work the company aims
group’s Chief Executive Officer and enormous gas assets. There is also to expand its already significant gas
Managing Director, told investors, potential access to phenomenal regional reserves.
shareholders, captains of industry and power demand,” Gilby said.
senior Government officials, recently
at a corporate presentation of the Botswana Power stations are currently
company’s operations. not operating at full capacity and diesel
fired power costs are unsustainable.
He informed them that key milestones South Africa’s Eskom, the primary
achieved to date included, securing source of Botswana’s imported power, is
independently certified gas reserves, struggling to meet demand due to aging
finalising the proposed construction power stations and has proposed very
of transmission lines planned to significant tariff increases, reportedly
connect to the national power grid, up to 80 percent. This leaves Botswana
securing full environmental approval, very exposed to high tariff increases
as well as progressing negotiations for and loss of power supply.Therefore,
a power purchase agreement with the according to Gilby, Tlou Energy’s CBM
Government through the state-owned projects have enormous potential
Anthony Gilby
Group Chief Executive Officer and MD

www.engineermagazine.co.bw Issue 25 - Dec/Jan 2020