Australia's Tlou Energy has signed a pilot power purchase agreement (PPA) to supply Botswana Power Corp (BPC)  with 2 MW of power from its Lesedi coalbed methane (CBM) project, the company said on January 19.  

A grid connection agreement has also been signed which enables the injection of power into the BPC grid. “These are key agreements that will facilitate the development of the power project and the sale of first power,” Tlou said. “In addition, Botswana’s ministry of mineral resources green technology and energy security has provided confirmation that negotiations on a larger PPA are due to commence in February.” 

Tlou’s managing director Tony Gilby said the company planned 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.” 

The company received last year a licence to generate electricity in Botswana from CBM. Tlou has development rights to 8,300 km² of acreage in Botswana which it estimates could contain 90.6bn m³ of gas trapped in coalbeds.