Tlou Energy Limited has announced that it is currently seeking funding for the development of the Lesedi Power Project. Tlou is an exploration-stage company engaged in the exploration and evaluation of assets in Botswana and the southern Africa region at large to identify and develop Coalbed Methane (CBM) resources.
In a statement, the company noted that it has engaged the Botswana Development Corporation (BDC) and the discussions are still ongoing with hopes of successfully concluding the funding proposal. It has also recently received an indicative term sheet for transmission line and transformer funding from a new potential financier. It will assess the offer alongside other potential financiers to evaluate the best possible option and funding partner going forward.
Implantation of the development project
Tlou Energy said the financing that will be obtained will be used to carry out the project in two phases; the first of which will produce approximately 2MW of electricity which will require an investment of US$10M, while the second phase with a projected capacity of 10MW will cost US$20M.
Phase one of the project involves transmission line construction, transformer installation, grid connection, procurement and installation of electricity generators, and potentially, the drilling of additional gas wells. The said transmission line will run from the Lesedi Project to the town of Serowe, a distance of about 100Km, where it will connect to the existing power grid. This phase will produce approximately 2MW of electricity.
The 2nd phase mainly aims to increase the initial electricity production to 10MW, and it will involve the drilling of more gas wells as well as the purchase of additional generators. The cost of this phase is approximately US$ 20M.
Upon successful completion of phase one and two, the company plans to expand the project beyond 10MW. This expansion is expected to be completed using project revenues and debt.