Botswana Stock Exchange-listed energy explorer, Tlou Energy, has agreed to an interim 2mw coalbed methane power purchase agreement with Botswana Power Corporation (BPC). This is the first time BPC or government which owns the power utility has agreed to a CBM power supply contract from an independent power producer or any one entity for that matter.
"This interim PPA is now undergoing final regulatory formalities. At the request of BPC the commercial terms of the PPA remain confidential," said Managing Director Tony Gilby. Furthermore, the company noted they are still in discussions with potential project financiers who have been waiting for the announcement of the interim PPA.
In the past the company disclosed they were in talks with Botswana Development Corporation (BDC), a state-owned development financier. This week the company said any financier can aid connection to the national power grid and subsequently bolster revenue.
Two years ago, the company submitted a tender to produce a 10mw CBM power project to government. However they have been given an opportunity to produce 2mw first. All things being equal Tlou Energy will be producing the CBM power from it's Lesedi project, the most made CBM project in Botswana.