Tlou Energy Ltd told investors it aims to start green hydrogen production at the Lesedi project in Botswana in 2022 as it seeks to develop complementary cleaner and greener power generation options.
The company, in a statement, updated on the project in which it is partnered with hydrogen technology partner Synergen Met. At Lesedi, the partners are working to combine large, established natural gas reserves with abundant solar energy to produce green hydrogen.
Prototype engineering is proceeding to schedule, the company said.
"Tlou is well advanced in terms of approvals and agreements to commercialise our gas,” said Tlou managing director Tony Gilby. “With continued encouraging gas flows from Lesedi and the development of additional ways to monetise our gas, we are about to enter a very exciting time for our company.
“With the potential for Synergen Met to grow alongside Tlou, we see the development of a mutually rewarding and highly beneficial relationship."
Synergen Met is expected to float on a public stock exchange via an IPO in the coming months, and through its partnership agreement Tlou has the option to participate in the funding round, up to US$3mln.
The AIM-quoted natural resources firm highlighted that it sees significant upside for a potential investment in Synergen Met, based on comparisons with similar listed entities. Moreover, it noted that the tie-up with the partner provides significant growth potential and creates alternative route to market for Tlou's gas in Botswana.