04 Jul 2019
Botswana has been dependent on the power imports and diesel generation so to provide power to the country. With the energy shortage in mind, the Botswana government has stated that a coal bed methane (CBM) fuelled power plant will be built.
The Public Procurement Disposal Asset Disposal Board (PPADB) confirmed the two energy companies, Sekaname and Tlou Energyas eligible and chosen to run the operations and to take on the project, with discussions to commence soon. The Ministry of Mineral Resources, Green Technology and Energy Security said, ‘As per the PPDB Act, the negotiations outcomes will go through an approval process by PPADB prior to awarding of the tender.’
Tony Gilby, Tlou managing director showed his excitement ahead of the commencing of the project saying, ‘The effort put in by our team over recent years has been phenomenal and this result makes it all worthwhile. The company will now progress with additional work on the ground to deliver a gas‐to‐power solution that can bring significant benefits to the country and to our shareholders.’
Tlou representatives said that the power plant would generate a maximum of 100MW. However, operations and power generation will start to increase gradually, starting with 10MW in order to minimise risks and to start operations with a lower immediate capital cost. Tlou reported that a project of 10MW would lead to a gross revenue of around US$10 million per annum.
Coal bed methane is a variation of natural gas, which is a clean fuel.