- Botswana gas-to-power company advances Lesedi development while navigating funding challenges
GAZETTE REPORTER
Tlou Energy has recorded its first revenue milestone as the company continues efforts to optimise gas production and expand its Lesedi gas-to-power project in Botswana.
In its Quarterly Activities Report for the quarter ended 30 June 2026, the company said the Kala Data Centre completed its first full quarter of continuous operation, marking progress from pre-revenue activities to initial commercial operations.
“The transition from pre-revenue activities to initial revenue generation reflects the Company’s progress in monetising its gas resources and establishing commercial operations,” Tlou said.
The Kala Data Centre, owned and operated by Kala Data, is fully commissioned and has generated initial revenues at a proof-of-concept scale. However, Tlou noted that revenue levels remain modest as systems continue to be optimised.
Lesedi Progress
The Lesedi Project remains Tlou’s core development asset, combining gas production and power generation at a single site.
The company said it is continuing work to improve gas production efficiency, with production testing and dewatering at the Lesedi 4 and Lesedi 6 wells progressing. Both wells are producing gas and water, while independent technical reviews are ongoing to assess performance and identify optimisation opportunities.
Planning has also commenced for a proposed Lesedi 6P pipeline, which is intended to connect the production well to the Kala Data Centre generators.
“If progressed, the pipeline is expected to support additional gas availability to the facility, subject to funding, approvals, construction, commissioning and well performance,” the company said.
Tlou said achieving sustainable commercial gas flow rates remains a key technical milestone for the Lesedi Project.
Power Expansion
The company is also advancing its hybrid gas and solar power strategy.
During the quarter, Tlou assessed options for an initial 5MW solar development, with scalability under review. Battery Energy Storage Systems and compressed natural gas storage solutions are also being evaluated to support system flexibility.
The company said its data centre partner has indicated interest in installing 1MW of solar photovoltaic capacity at the facility.
Tlou’s proposed hybrid configuration is intended to combine gas-fired generation with solar PV and associated storage technologies. The company said no binding agreements are currently in place, with all initiatives subject to funding and required approvals.
Funding Needs
Funding remains a key consideration for Tlou as it works to advance development activities.
The company’s shareholder loan facility remains at A$10 million, with A$6.50 million drawn to date and approximately A$3.62 million available at the end of the quarter.
Tlou said the facility is being used to support operating expenditure while it seeks additional funding needed to execute and scale its development activities.
“The Company remains dependent on securing additional funding to progress material development activities,” Tlou said.
The Lesedi substation construction remains approximately 90 percent complete, with final works deferred pending funding availability. Grid connection remains a near-term priority for the project.
Tlou ended the quarter with approximately A$128,000 in cash as of 30 June 2026.