LONDON (Alliance News) - Tlou Energy Ltd on Tuesday said it has been selected to develop a coal bed methane power plant at its Lesedi project in Botswana by the country's Public Procurement & Asset Disposal Board, amid plans to increase its power output from the site.
The power supplier said the power plant will be five times larger than the 10 megawatt power plant originally applied for, which it said demonstrates "the strength of the [Botswana] government's support for the development of domestic sources of power".
Tlou said it is awaiting full details from the Ministry of Mines, Energy and Water in Botswana, noting that the selection follows the recent proposal from the country's government for 100 megawatts of coal bed methane power to be incorporated into its future generation supply plans.
The company noted that the off-take agreement from the site creates a "ready market for Tlou's independently certified contingent gas resources of around 3.3 trillion cubic feet".
"Although we always planned to expand our project beyond the 10 megawatts initially envisaged as being fast-tracked for development, a 50 megawatt project is five times larger than expected and a fabulous result for the company. Importantly it provides more certainty to our investment case to increase our power output as we develop our field," Tlou Acting Managing Director Gabaake Gabaake said.
Shares in Tlou were up 10.3% at 4.55 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Tlou Energy (TLOU)