Tlou Energy advanced in its Hydrogen project

Tlou Energy’s hydrogen project is at an advanced stage and is slated to be installed at Lesedi Power Plant early next year.

Recently, the company signed Heads of Agreement ( HOA) with an Australian based company, Aussie group Synergen Met, for a hydrogen conversion plant at Lesedi plant. Tlou aims to produce Hydrogen initially by Pyrolysis and this would be an added revenue for the company. The hydrogen is proven as a clean transport fuel which will also be used in gas fired generators to supply existing Power Purchase Agreement signed with Botswana Power Corporation. In a statement released this week, Tlou Energy’s current design work is underway to modify this process to produce hydrogen and solid carbon using Tlou- owned Lesedi’s gas flows. Tlou Energy Managing Director, Tony Gilby stated that Hydrogen and solid carbon prototype unit is being built in Brisbane. “The unit will be installed at Lesedi Project in early 2022. The prototype is planned to convert existing gas flow to hydrogen and solid carbon using plasma torch technology.”

He said Botswana will have access to a clean transport fuel with enormous upside for Tlou and the region. “The binding HOA with Synergen Met covers all of Southern African Development Community ( SADC). HOA with Synergen Met includes an option to participate in their IPO.” Furthermore, Synergen Met has developed a process to convert methane into solid carbon and hydrogen, with a prototype already running that has produced hydrogen and sodium cyanide. Through the agreement, Tlou Energy will be able to utilise Lesedi’s existing gas flow, which is currently being flared while diversifying its products and customer base and offering a huge expansion potential beyond a successful prototype. Synergen Met intends to list later this year and as part of the HOA, Tlou will invest in that IPO. Under the HOA third party costs to build the prototype will also be shared on a 50: 50 basis with in- house costs covered by each party. Additional potential benefits include, allowing farms and communities to become more productive, using reliable and cleaner power; facilitating clean cooking by reducing the need to burn wood as the affordable electricity network grows as well as the enhanced energy security for Botswana.