Botswana: Tlou Energy Announces Funding Update for Lesedi Project
Tlou Energy has announced a new update on funding for Lesedi power project.
The Lesedi power project aims to deliver cleaner electricity within Botswana and the rest of Southern Africa using gas and solar power. Tlou Energy has been working to secure funding to build a transmission line from the Lesedi power project to the existing electric power grid. Tlou Energy also wants to finance other assets’ developments, including gas and solar generation assets and electrical sub-stations. Due to confidentiality, the company cannot disclose the name of the company with which it is in finance discussions. Nonetheless, it confirmed that the company is a very reputable Botswana-based entity. The prospective financing company seems to be favourably disposed to Tlou Energy, and is now proceeding to get a third-party technical review of the project. The move to consult a third-party is part of their due diligence, after discussions within their internal investment committee and board. After the third party assesses the project, a decision will be made on whether or not to move forward. The Lesedi project is proposed to be developed in two phases. The first phase will involve sub-stations, transmission line construction, electricity generators, grid connection, and the drilling of additional gas wells. However, the drilling of more gas wells is still to be decided. The 100-kilometre transmission line will run from the Lesedi project’s location to Serowe in Botswana, joining the country's existing power grid. Funding for this phase is an estimated US$10 million which can be provided in stages or at once. Initial generation is estimated to be up to 2MW of electricity. Phase 2 will involve drilling gas wells and the purchase of more electricity-generating assets. This phase is meant to expand the generation of electricity to up to 10MW. The funding required for this project is about US$20 million. After the two phases are successfully completed, Tlou Energy intends to expand the project beyond the 10MW production capacity. The company has received correspondence from advisors helping the Government of Botswana execute their Coal Bed Methane (CBM) programme. This initiative is for the development of up to 100MW of CBM fuelled pilot plants. Photo: Botswana Power Line in Bush near near City (Lucian Coman | Dreamstime) Related News: