logo-loader
Tlou Energy Ltd

TLOU Energy gets environmental greenlight for CBM fuelled power plant

“The granting of the downstream EIS is great news for the company as it gives the final environmental authorisation for the initial proposed development," said boss Tony Gilby

oil and gas operations
The authorisation allows up to 20 MW of CBM fuelled capacity plus a 20MW solar farm

TLOU Energy Ltd (LON:TLOU) revealed that Botswana's Department of Environmental Affairs has approved the company’s environmental impact statement (EIS) for its planned coal bed methane project.

The EIS was for a 20 megawatt coal bed methane fuelled power generation plant, plus a 66kV Transmission Line to Serowe and a solar farm with a capacity of up to 20 megawatts.

READ: Tlou Energy makes priorities clear as it advances CBM venture

The approval was described as a “major achievement” as it represents the final environmental authorisation needed to advance the Lesedi project through to commercialisation. The approval remains valid for 30 years.

The company said the approval would allow it the flexibility to rapidly expand to 20MW of CBM generation, with the added renewable capacity from the solar farm.

TLOU chief executive Tony Gilby said the approval further de-risks the Lesedi project.

“The granting of the downstream EIS is great news for the company as it gives the final environmental authorisation for the initial proposed development of up to 10MW of power generation and allows for a further 10MW of CBM power generation. This gives the company the option to rapidly expand to 20MW,” he added.

In afternoon trading, shares in TLOU were 9.5% higher at 7.45p.

In a note to clients, analysts at ‘house’ broker Shore capital said: “We agree that downstream EIS approval is excellent news for Tlou, as it gives final environmental authorisation for the initial proposed development of up to 10MW, whilst providing the option to rapidly expand to 20MW.

“With an active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

They added: “We see some very exciting potential catalysts on the horizon in the near term, particularly with regard to a definitive result from the current RFP tender process and the announcement of initial production test results from the ‘Lesedi 3’ and ‘Lesedi 4’ wells.”

 -- Adds analys comment, updates share price --

 

Quick facts: Tlou Energy Ltd

Price: £0.05

Market: AIM
Market Cap: £21.61 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tlou Energy Ltd named herein, including the promotion by the Company of Tlou Energy Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Tlou Energy nearing commercial gas flow rates in Botswana

Tlou Energy Ltd’s (LON:TLOU) Colm Cloonan caught up with Proactive London's Andrew Scott following the release of their quarterly report. He says the Lesedi 3 & 4 production pods continued to dewater and produce gas and the big focus for them in the current quarter is announcing commercial...

2 weeks, 1 day ago

2 min read