Tlou Generates Botswana's 1st Power from CBM

Tlou Energy, the AIM and Australia-listed independent active in Botswana coalbed methane (CBM) development, said June 20 that it generated its first power from CBM at its field in Botswana following the installation of a gas generator at the Selemo project area.

It's the first time in Botswana that CBM has been used to generate power.

Tlou managing director Tony Gilby said: "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'.  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."  Power required to run pumps and metering at the Selemo pilot to date has been supplied solely from diesel generators, but one of these has now been replaced by a working gas generator -- which now means less flaring.

Tlou plans to replace another diesel generator in the near term which would provide further savings on diesel costs. It expects the first replaced generator to reduce its diesel requirement by approximately 50,000 litres per year, increasing once a second one is installed. 

Tlou has been producing gas at Selemo for roughly 12 months and has independently certified contingent gas resources of some 3.2 trillion ft³ there.  It is working with a UK partner on plans to develop an up-to-100 MW CBM-to-power project on behalf of the Botswana government, as yet without a final investment decision. It sees the potential for later exporting power from any subsequent power projects to South Africa.

Mark Smedley