Botswana embarks on coal to liquids project
Botswana Oil Limited’s proposed multibillion Pula Coal to Liquids project will boost the country’s economy, both during the construction phase to full production, a senior manager at the state oil company has told an industry meeting.
The project, which is expected to cost a whopping $ 2.5 billion, is tapping into Botswana’s abundant coal reserves to produce the much- needed diesel and gasoline primarily for the local market. Botswana, a landlocked country depends on neighboring countries for the supply of fuel.
Speaking at this year resources, Botswana Oil Limited’s head of new ventures, Gamu Mpofu, said the CTL project, once complete will ensure energy security and diversification of the economy.
He disclosed that a project team is currently finalizing a Request for Quotation ( RFQ) for the ambitions project which is expected to be floated in the market as early as next month, June 2022. “The project is being done through a PPPs ( Public Private Partnership) model,” Mpofu told delegates which included policy makers, mining and exploration companies ‘ executives, financiers, environmental experts among others.
Fuel from the Facility will be off- taken by Botswana Oil Limited and others, and on- sold at a wholesale level.
The historic project is sponsored by the Ministry for Minerals and Energy ( MME). A PPP feasibility study has already been concluded. At construction stage, the project will employ over 1500 people and 1420 when at operational phase. In addition, the project, once complete is expected to contribute about P1.2 billion in corporate tax.
Mpofu is aware that there would be environmental problems with the use of coal to produce fuel, which if not managed correctly could be disastrous. “There are implications of using fossil fuels such as coal to produce petroleum products.
Key among the implications of using coal is the global threat from the effect of greenhouse gas emissions which are a catalyst to climate change,” he told the annual gathering in Gaborone.
Nonetheless, he was quick to point out that Botswana is committed to sustainable economic development as evidenced by her ratification of several multilateral environmental agreements and cascading them down to national policies and programs.
At an international level, Botswana is party to the United Nations Framework Convention on Climate Change ( UNFCCC) as well as the Paris Agreement COP26.
With the Southern region, the country is governed by the Southern African Development Protocol on Environmental Management for Sustainable Development, SADC Green Economy Strategy among other provisions embedded in the SADC Climate Change Strategy & Action Plan - UNFCCC.