Tlou produces first coalbed methane power in Botswana

The AIM-traded firm claimed to have the “most advanced” CBM project in Botswana, the Lesedi Project, and already benefitted from “significant, independently certified” contingent gas resources of around 3.2 trillion cubic feet, and independently certified gas reserves.

Tlou said it has been producing gas at Selemo for approximately 12 months.

The board confirmed the first power generation from its CBM gas field, which was also the first power generation from CBM in Botswana.

It described the achievement as a “significant milestone”, providing evidence of the ability to generate power from Tlou's gas.

The use of CBM gas would reduce the company's spend on diesel, with the board also claiming that CBM gas is “cleaner” than coal fired power.

“First gas-to-power via CBM in Botswana is an extremely significant milestone for the company and in effect a proof of concept of 'first gas monetisation',” said managing director Tony Gilby.

“This is the first power generated from CBM in the country and this achievement reinforces our view that CBM gas-to-power is achievable in Botswana using gas from the Lesedi Project.

“CBM gas is a cheaper and cleaner alternative to diesel generation and is significantly cleaner than coal fired power generation.”