Tlou Energy Limited (AIM:TLOU, ASX:TOU, BSE:TLOU) set out the progress made at its Lesedi coal-bed-methane gas-to-power project in Botswana in an operational report for the quarter to end September.
Tlou plans to develop gas and solar power generation assets at Lesedi, the company’s most advanced project, with electricity to be sold into the power grid.
During the quarter, the company agreed the terms, including the interest rate, for a facility to fund the initial development of Lesedi. The legal agreements, which need to be signed before the package becomes binding, are being prepared, it said.
The project has all approvals needed to allow development to begin. The first phase will be a 10MW power project with electricity to be sold to Botswana Power Corp under an agreement signed after the end of the quarter. Once in full production, 10MW of generation could provide annual revenue of about US$10mln (£7.3mln), Tlou said.
In July, Tlou signed a Heads of Agreement with Synergen Met for a hydrogen conversion plant at Lesedi.
READ: Tlou Energy signs up for hydrogen conversion pilot at Lesedi