Tuesday, October 20, 2020

Tlou energy bids for the 100MW CBM power plant

Tlou Energy says it submitted its response to the Request for Proposal (RFP) from the Ministry of Mineral Resources, Green Technology and Energy Security for the development of up to 100MW of CBM fueled pilot power plants in Botswana.

In January, the Ministry of Mineral Resources, Green Technology and Energy Security gave Tlou a request for proposal for the development of the power plants in Botswana, with the expectation of creating a coal bed methane gas industry in the country.

The company says the proposal was submitted as planned prior to the deadline of 20 September 2017, and was accepted by the Ministry with the bid involving the development of CBM Gas to power in an incremental manner.

Tlou’s Managing Director Tony Gilby highlighted that the preparation and submission of documentation for the response to the government’s request has been a mammoth task, taking many months to complete.  However he says the submission has described Tlou’s planned project in detail as well as outlining the benefits the project can bring to Botswana both directly and indirectly.

Gilby said, “With CBM gas reserves, from which we are currently generating power in the field, upstream environmental approval and a mining licence in place, I believe Tlou is well placed, as the leading CBM company in the country, to be able to deliver the project outlined in the submission and I look forward to working with the Government to make it happen.”

Tlou Energy says if the response is successful, it significant increases the chances of signing a power purchase agreement, Once initial development is completed, the company’s gas field will be connected to the regional grid, opening up the possibility for Tlou to provide power in the southern African region, via the Southern African Power Pool.

In addition, Tlou Energy has received two-year extensions to all five prospecting licenses on the Mamba project for June 30, 2019. The company state that the submission will be assessed based on eligibility, technical and funding criteria and Tlou is one of two companies who submitted a response to the RFP. However Tlou says an indicative date for receipt of a response on whether the proposal has been successful or unsuccessful is not yet known.

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