Dual-listed Tlou Energy expects to sign a 10 MW power purchase agreement (PPA) with State-owned Botswana Power Corporation, for power generated at Tlou’s Lesedi project.
Tlou plans to develop gas, solar and hydrogen power generation assets at Lesedi, with electricity to be sold into the local power grid.
The PPA is for an initial five-year term, with the 10 MW project being the first phase of Tlou’s planned power project expansion.
The 10 MW of generation could provide yearly revenue of about $10-million for Tlou.
The company now has to build and install an overhead transmission line and substations to connect Lesedi to the grid, install generation assets and commission and test equipment.
Tlou has an agreement with a potential financier in place to develop this first phase of the project, but these agreements still need to be finalised and signed before the package becomes binding.
“The demand for cleaner sources of power is growing in many jurisdictions and gas prices are rising rapidly.
“With Tlou's established gas reserves and resources, and the ability to develop gas, solar and hydrogen projects, Tlou is ideally positioned to take advantage of the favourable market conditions,” MD Anthony Gilby states.