Last checked at 18 Oct 2021 09:11
18 October 2021
Tlou Energy Limited
("Tlou" or "the Company")
Power Purchase Agreement Signing Ceremony
Tlou Energy Limited is developing power solutions in Sub-Saharan Africa through gas-fired power, solar power and hydrogen projects.
The Company is listed on the ASX (Australia), AIM (UK) and the BSE (Botswana). The Lesedi Power Project ("Lesedi") is the Company's most advanced. Tlou plans to develop gas, solar and hydrogen power generation assets at Lesedi with electricity to be sold into the local power grid.
10MW Power Purchase Agreement
The Company is pleased to announce that a 10MW Power Purchase Agreement (PPA) is expected to be signed today between the Company and Botswana Power Corporation (BPC). Under the terms of the PPA, BPC will purchase up to 10MW of power generated at Tlou's Lesedi power project.
The PPA is for an initial five-year term with the 10MW project being the first phase of Tlou's planned power project expansion.
The Company would like to thank to all those involved in this process and the Government of Botswana for their support of the industry.
A ceremony to sign the PPA will be available to watch live on BPC's Facebook page. The ceremony will commence at 10am in Botswana (9am UK).
Tony Gilby, Tlou's Managing Director, said "Signing of the 10MW PPA is a major step forward for Tlou and builds on the excellent progress made to date. It has taken some time and considerable effort to get to this point as all of those involved would appreciate. This achievement puts the Company on a firm path towards development of the Lesedi power project and considerable growth potential.
With strong demand for reliable and cleaner power in the region, this 10MW project is expected to be the start of much larger developments by the Company.
This is great news for the Tlou, our shareholders and for Botswana. After a long wait we can now look forward to getting the project up and running."
Lesedi Power Project
Lesedi is the Company's most advanced project and is located in Botswana's Central District. The project has all approvals in place to allow development to commence. The first phase will be a 10MW power project with electricity to be sold to Botswana Power Corporation. Once in full production, 10MW of generation could provide annual revenue of approximately US$10m.
Key stages of the development are outlined below:
· Construction and installation of an overhead transmission line and substations to connect Lesedi to the electricity grid
· Installation of generation assets
· Commissioning and testing
· Sale of first power
Project Finance
The Company has agreed terms with a potential financier for an initial USD$10m package to develop the Lesedi project. Legal agreements in relation to this proposal are being prepared. These agreements will need to be finalised and signed before the package becomes binding.
Power Market
Botswana is currently not meeting power demand from internal generation and is reliant on imported power at an enormous cost. Without sufficient internally produced power, neighbouring countries effectively control Botswana's energy security.
Tlou plans to start with the supply of power to Botswana followed by expansion across southern Africa where demand for new sources of cleaner energy is very strong.
Hydrogen
Tlou's Hydrogen plans are also gathering pace. A prototype hydrogen and solid carbon production unit is being built in Australia by Tlou's hydrogen partners, Synergen Met Pty Ltd, a leading hydrogen developer applying unique intellectual property in the form of plasma technology to convert methane to hydrogen and solid carbon.
Clean Energy Demand
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.
By Authority of the Board of Directors
Mr. Anthony Gilby
Managing Director
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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For further information regarding this announcement please contact:
Tlou Energy Limited | +61 7 3012 9793 |
Tony Gilby, Managing Director | |
Solomon Rowland, General Manager | |
Grant Thornton (Nominated Adviser) | +44 (0)20 7383 5100 |
Harrison Clarke, Colin Aaronson, Lukas Girzadas | |
Shore Capital (Broker) | +44 (0)20 7408 4090 |
Jerry Keen, Toby Gibbs, John More | |
Vigo Consulting (PR - UK) | +44 (0)20 7390 0230 |
Patrick d'Ancona, Chris McMahon, Kendall Hill | |
Six Degrees (PR - Australia) | |
Ashley Seller | +61 418 556 875 |
Forward-Looking Statements
This announcement may contain certain forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this announcement. Tlou Energy Limited undertakes no obligation to update any forward-looking statements.