- Aims at first power generation later this year
- Lesedi has Power Purchase Agreement BPC
GAZETTE REPORTER
Tlou Energy has announced substantial progress in its 10MW gas-to-power initiative.
In its Quarterly Activities Report for the quarter ending 30 June 2024, the company says its Lesedi project, which aims at first power generation later this year, remains at the forefront of Botswana’s gas-to-power sector.
“The Lesedi development involves gas production, electricity generation, substation construction, and the transmission and sale of electricity,” it says.
Two production pods
The project utilises coalbed methane gas from the company’s gas field in central Botswana.
To harness the gas, Tlou drills dual lateral production wells known as “pods,” consisting of a vertical production well and two lateral wells intersecting the production well.
Lesedi currently has two production pods, Lesedi 4 and Lesedi 6, both of which have sustained gas production.
“Lesedi 6 remains in production while Lesedi 4 has been flushed clean of coal fines that periodically build up and brought back into production post quarter end,” the report notes.
Additional pods
Lesedi 4 and Lesedi 6 are slated to provide the initial gas for power generation. The company plans to drill additional pods once funding is secured, with ongoing discussions with debt providers during the quarter.
Preparatory work for the next drilling campaign has already commenced, aiming to scale up gas production to expand electricity generation and associated revenue.
“Once drilled, a pod needs to be dewatered, which involves removing water from the target coal seam; thereafter, gas flow increases,” says the report. “As more pods are drilled, the coal will get progressively dewatered, which should aid future gas production.”
10MW PPA
Electricity generated on-site at Lesedi will be sold into Botswana’s national power grid under an agreed 10MW Power Purchase Agreement (PPA) with the Botswana Power Corporation (BPC).
“The project is planned to grow incrementally to satisfy the 10MW PPA and then expand further,” says the report.
Initial generation will use gas produced from Lesedi 4 and Lesedi 6, with additional generation units to be added as more gas is produced.
During the quarter, Tlou has been collaborating with suppliers to finalise the design, site setup, and delivery options for the initial generators, which are expected to arrive in the coming months.
Gas gathering network
The gas produced from each pod is gathered and piped to the power generators.
“Work on the gas gathering network began in the previous quarter and continued into this reporting period,” the report says. “The gas gathering lines can be finalised once the generators are on-site.”
Tlou Energy’s commitment to developing clean energy solutions aligns with Botswana’s broader energy strategy, aiming to reduce reliance on imported power and enhance energy security through sustainable means.
The Lesedi project is seen as a critical step towards achieving these goals, providing a template for future gas-to-power projects in the region.
Stepwise scale-up
The company’s focus on incremental growth allows for a stepwise scale-up of operations, ensuring that each phase is carefully managed and optimised for maximum efficiency and output.
This approach not only mitigates risks but also ensures that the project can adapt to changing market conditions and technological advancements.
Tlou’s efforts at Lesedi are part of a broader push to harness Botswana’s substantial coalbed methane reserves, providing a cleaner alternative to traditional coal-fired power generation.
As the project progresses, it is expected to attract further investment and interest in the country’s burgeoning clean energy sector.
Tlou Energy is dedicated to developing clean energy solutions for Botswana and the sub-Saharan region.