12 April 2024
Natural gas and renewables firm Botala Energy Ltd (ASX:BTE) and Sub Saharan Africa-focused solar developer AAAS Energy BV have signed a pact to explore the feasibility of installing up to 250 MW of solar capacity at an energy hub under development in Botswana.
The contemplated project will be realised at Botala’s Leupane Energy Hub and Industrial Park near the town of Palapye. The site could end up accommodating up to 500 MW of solar energy and 200 MW of gas-fired power generation.
The two partners will now work to finalise a bankable feasibility study (BFS) by the end of 2024 to determine the project cost, along with the ownership and funding structures for a final investment decision (FID). Part of the BFS will also consider possible off-takers in the Southern African region as well as the potential for developing the project as a merchant power station. The outcome of the study will ascertain whether the companies will potentially embark on further solar capacity development under similar terms.
The Leupane Energy Hub is positioned to emerge as a cornerstone for renewable and gas-fired power generation in the region, according to Botala. AAAS will farm-into 50% of the project for AUD 1 million (USD 650,000/EUR 609,000).
The Australia-based and Botswana-focused firm has already completed grid connection studies for the project and the public review period of its environmental impact assessment (EIA). The EIA includes a hybrid power station; solar panel factory; liquefied natural gas (LNG) and/or compressed natural gas (CNG) plants; offices; and mixed-use agriculture.
(AUD 1 = USD 0.652/EUR 0.608)
