BIDDING FOR POWER
Tlou Energy eyes Orapa power plant gas supply
Tlou Energy, an Australian-based company focused on electricity generation in Botswana, has announced plans to bid for the supply and delivery of natural gas to the Orapa 90 Megawatts (MW) power plant.
This follows the issuance of a tender by Botswana Power Corporation (BPC) for the supply and delivery of natural gas at the power plant.
In the operational report for the quarter ending 31st March, 2021, Tlou announced its plans for the job at the plant, which provides power to Orapa diamond mine.
The plant currently runs on intermittent grid power and emergency diesel generation but stakeholders at the mine have declared their desire to move to cleaner energy.
Tlou, which is publicly listed on the Botswana Stock Exchange Limited, believes gas from its nearby discoveries could be ideally suited to assist with meeting the mine’s cleaner energy objectives.
In its report, the company said it will review its tender documentation and subject to meeting the eligibility criteria, plans to submit a response to the tender, which closes on 21st May.
Meanwhile, Tlou’s Managing Director,
Anthony Gilby, revealed his organisation is still looking to raise funds to build infrastructure to connect the Lesedi Power Project to the existing electricity grid in the country.
This infrastructure includes transmission lines, electrical substations as well as the installation of gas and solar generation assets.
Gilby said finance discussions are at an advanced stage with ‘an unnamed reputable Botswana-based entity’.
“However, we can confirm that their investment committee and board have discussed the project financing and are favourably disposed to Tlou’s proposal,” disclosed Gilby.
The Lesedi Power Project is scheduled to be developed in two phases, with the first phase requiring US$10 million (approximately P100 million).
This will be for the construction of the transmission line, grid connection, electricity generation and potentially drilling of gas wells.
Phase two, set to cost twice as much, will involve the expansion of electricity generation up to 10MW and includes the drilling of gas wells and the purchase of additional electricity generation assets.