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Tlou Energy given green light to generate power

Publishing Date : 13 May, 2019

Author : ALFRED MASOKOLA

Local Coal-Bed Methane exploration outfit, Tlou Energy this week announced another watershed step towards their quest of delivering Botswana’s first natural gas power generation project.


Department of Environmental Affairs under the Ministry of Mineral Resources Green Technology and Energy Security has approved Tlou’s Environmental Impact Statement (EIS) for up to 20MW Coal Bed Methane power generation, a 66 KV Transmission Line to Serowe as well as a Sola Farm of up to 20 MW, the company revealed in a statement released 1st May 2019.


In 2018 Tlou Energy commenced work on its application for an EIS for downstream development being power generation and transmission. The EIS addresses the social and environmental context of the area surrounding the planned development of the Lesedi project which includes CBM power generation of up to 20MW, a 66kV transmission line to Serowe and a Solar Farm of up to 20MW.The Company already has approval in place for its upstream activities which comprises of development drilling and exploration.


In the statement, also published by Botswana Stock Exchange Limited, the BSE listed energy company says the DEA approval confirms that their EIS for proposed downstream development adequately identifies and effectively mitigates the anticipated impacts associated with the proposed activity.


According to Tlou Energy The EIS authorization which will be valid for thirty (30) years and may be subject to renewal at the end of this period is another important project milestone which highlights the progress being made by the Company in its aim to deliver CBM power in Botswana and Southern Africa. 


Commenting on the approval Tlou Energy Managing Director Tony Gilby says the approval provides his Company with the flexibility to rapidly increase their progress and move the Lesedi CBM Project through to commercialization “We welcome another milestone which further de‐risks the Lesedi Project.  The granting of the downstream EIS is great news for the Company as it gives the final environmental authorization for the initial proposed development of up to 10MW of power generation and allows for a further 10MW of CBM power generation” he said.


Tlou Energy, also listed on the Australian Securities Exchange (ASE) and the London Stock Exchange Alternative Investment Market(AIM) is focused on delivering Gas‐to‐ Power solutions in Botswana and southern Africa to alleviate some of the chronic power shortage in the region.  Tlou is developing projects using coal bed methane (CBM) natural gas. Botswana has a significant energy shortage and generally relies on imported power and diesel generation to fulfil its power requirements.


As 100% owner of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy says it provides investors with access to a compelling opportunity using domestic gas to produce power and displace expensive diesel and imported power.  Since establishment, Tlou has significantly derisked the project in consideration of its goal to become a significant gas‐to power producer.


The Company flared its first gas in 2014 and has a 100% interest over its Mining License and ten Prospecting Licenses covering an area of 9,300 Kilometer square in total The Lesedi and Mamba Projects already benefit from significant independently certified 2P gas Reserves of 41 BCF.  In addition, 3P gas Reserves of 427 BCF and Contingent Gas Resources of 3,043 BCF provide significant additional potential. Tony Gilby says they are currently planning an initial scalable gas‐to power project.


Following successful implementation of this first scalable project, Tlou will then evaluate longer term prospects for the delivery of electricity generated from CBM in Botswana to neighbouring countries. “The Environmental Impact Statement gives us the option to rapidly expand to 20MW. The effort put in by our team and the independent environmental consultants, Ecosurv, has been exceptional and I would like to thank them for their hard work, which has led to this excellent result,” Said Gilby.


Last Month’s Tlou announced that they raised over P21 million towards their working capital from successful an equity placement to sophisticated investors totaling. Tlou further revealed that the funds were raised from both a long term existing shareholder as well as a new Botswana based fund manager.


The Placement comprises the issue of 29,066,650 new ordinary shares representing 6.46 percent of the enlarged share capital at an issue price of BWP0.75 approximately AUD $ 0.10 or £0.055 per share. 28,000,000 of the Placement shares were issued to an existing shareholder, The Botswana Public Officers Pension Fund, FNB Nominees (Pty) Ltd, Gaborone (BPOPF). Following the placement Botswana’s largest pension fund and one of Africa’s richest BPOPF now hold 47,230,769 shares of the enlarged share capital of the company, representing a 10.49 percent holding of Tlou Energy Limited

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