Coalbed methane (CBM) specialist Tlou Energy and UK firm Independent Power (IPC) have signed an agreement to jointly develop the proposed 100MW CBM power project (IPP Project) in Lesedi, Botswana.
A request for proposal (RFP Tender) has been issued to Tlou by the Ministry of Mineral Resources, Green Technology and Energy Security (MMRGTES) for tender and development of the power plant at the Lesedi CBM project.
Tlou managing director Tony Gilby said: “IPC brings power generation experience and funding partners to the project that significantly enhances its viability.
“With an expanding gas reserves base, environmental approval for the upstream component of the proposed development and now a power development partner, we are in a very strong position.”
Prior to receiving the RFP, the application process involved approval by Botswana’s Government Cabinet, and was later reviewed by the Public Procurement and Asset Disposal Board.
Under the agreement, Tlou and IPC will finalise work on a detailed proposal for submission to MMRGTES to supply CBM power in modular stages.
The proposal also includes negotiations with various third-parties on the terms of an off-take agreement, network access, and project funding.
The IPP Project will receive gas from Tlou’s Lesedi CBM project in Botswana.
Tlou and IPC’s strategy for the RFP tender consists of an initial 10MW pilot power project, initial grid connection, expansion up to 100MW of generation capacity and associated infrastructure.
IPC has already started discussions with its project development and funding partners and also received letters of interest from selected parties for securing funding support.