Australian gas agency Tlou Energy has been appointed by Public Procurement and Asset Disposal Board (PPADB) in Botswana to develop a coalbed methane (CBM) power plant.
The new plant will be developed at Tlou Energy's wholly owned Lesedi CBM Project, which is the most advance of its kind in the African country.
The initial proposal submitted by Tlou Energy was for a 10MW gas-to-power pilot project, but the government has now increased the capacity to 50MW.
Tlou Energy's acting managing director Gabaake Gabaake said: "Although we always planned to expand our project beyond the 10MW initially envisaged, a 50MW project is five times larger than expected and a fabulous result for the company.
"Importantly, it provides more certainty to our investment case to increase our power output as we develop our field.
"A larger project also provides more options regarding development and potential benefits from economies of scale. We also believe it has the potential to strengthen the range of parties interested in partnering to finance the project's development."