Botswana has granted Tlou Energy a mining licence for its Lesedi coal-bed methane (CBM) project, the company’s Managing Director said on Monday, paving the way for what would be the Botswana’s first gas-to-power plant.
“The awarding of the mining licence by the ministry is a major milestone for the company, further de-risks the project, and is an important prerequisite to developing the first commercial gas-to-power project in the country,” Tlou Managing Director Tony Gilby said in a statement.
Coal-bed methane is a form of natural gas trapped in underground coal seams. Tlou said it had received a request for a proposal from the Botswana government to provide up to 100 megawatts (MW) of CBM power from its Lesedi project. Botswana currently has two coal-fired power plants with a capacity to produce up to 720 MW and plans to add another 500MW in the next three years through coal, gas and solar power.