Tlou Energy reports solid progress on Lesedi Project

Botswana-focussed gas and solar power developer Tlou Energy updated the market on the proposed Lesedi Power Project on Tuesday, reporting that a pilot power purchase agreement has been fully executed with Botswana Power Corporation (BPC) for the first 2MW of power.

The AIM-traded firm said a grid connection agreement had also been signed, which would enable the injection of power into the BPC grid.

It said the two agreements were “key” in facilitating development of the power project, and the sale of first power.

In addition, Botswana's Ministry of Mineral Resources, Green Technology and Energy Security provided the company with confirmation that negotiations on a larger power purchase agreement were due to start in February.

“It is great to see that Botswana is open for business and the government is motivated to get the gas industry up and running,” said managing director Tony Gilby.

“Tlou plans to start development of the Lesedi project as soon as possible and confirmation of the government's enthusiasm to provide the necessary support to ensure commercial development of CBM is very well received.

“After what was an extremely challenging year, the company is already making progress in 2021 and anticipate further advancement on all fronts in the coming term.”

At 1404 GMT, shares in Tlou Energy were up 11.1% at 3.33p.