Botswana-focused Tlou Energy Limited (AIM:TLOU, ASX:TOU, BSE:TLOU) said negotiations over a 10MW power purchase agreement with Botswana Power Corporation and securing funding for the Lesedi project “have significantly advanced”.
Bound by confidentiality agreements, Tlou said it is “looking forward to bringing both of these key matters to a conclusion as soon as possible” but the timing is outside its control.
An initial 10MW gas-fired power project, it added, could generate annual revenue of approximately US$10mln.
Once this first generation capacity is in place, the project “can rapidly expand”, with plans to expand gas generation and add solar generation too.
In addition to gas-to-power development, Tlou is also planning to produce carbon-neutral hydrogen.
During the quarter, the company said it entered into negotiations with a potential hydrogen project partner.
"Tlou is well-positioned to produce hydrogen in a relatively short time frame. The company has large and proven resources to develop these products, including methane for carbon and hydrogen, readily available water for hydrogen and oxygen, and CBM / solar power to drive the process," it said.