(Alliance News) - Shares in Tlou Energy Ltd jumped sharply on Friday after it announced an interim power purchase agreement with Botswana Power Corp.
The Botswana-focused power generation company's shares were up 52% at 2.28 pence in London in morning trading.
The interim 2 megawatt coal-bed methane pilot power purchase agreement is currently "undergoing final regulatory formalities" and its commercial terms have been kept confidential at Botswana Power's request.
At present, Tlou Energy said it is still in talks with possible project finance partners who were waiting for the interim power purchase agreement to be in place as it "facilitates connection to the power grid and first revenue for the company".
"A pathway to revenue generation is key for financiers and once connected to the grid, expansion of the project (and thereby increasing revenue) is seen as a relatively straightforward and largely de-risked process," Tlou explained.
Back in 2018, Tlou submitted its proposal to the Botswana Ministry of Mineral Resources Green Technology & Energy Security for development of a 10 megawatt coal-bed methane gas-to-power plant. This proposal is separate from the 2 megawatt interim agreement and the 2018 proposal is still being assessed.
By Anna Farley; annafarley@alliancenews.com
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Tlou Energy (TLOU)