With Hydrogen becoming increasingly recognised as an ideal source of zero carbon emission energy, Tlou energy has decided to tap into the opportunity and bring the development to Botswana.
The clean energies which Tlou has embarked on include Gas, Solar, and Hydrogen. As part of it’s strategy, Tlou aims to develop a cleaner energy to displace coal and diesel power ensuring little or zero gas emissions.
“The hydrogen economy is rapidly developing and could open multiple additional business oppotunities such as solid carbon products, oxygen, ammonia for energy storage, fuel cell electric vehicles (FCEV), agricultural and medical applications. Tlou is well‐positioned to produce hydrogen from different methods. The Company has large and proven resources to develop these products. Methane for carbon and hydrogen, readily available water for hydrogen and oxygen, and virtually unlimited solar power to drive the process.” Gilby asserted.
According to the Managing Director, Anthony Gilby, a Hydrogen strategy would benefit from Tlou’s extensive approvals secured to date, including environmental, gas and solar generation licences, access to land and established in‐country operational expertise.
In an effort to make the project a success, Tlou is in ongoing discussions with a number of parties to source roughly Hundred Million pula (P100 Million) or Ten millio United States dollars ($10m). Project finance package is for the initial phase of the Lesedi gas‐to‐power project which includes construction of transmission lines and sub‐stations.
“Two of these parties are currently working through their internal approval processes and have not expressed a specific need to conclude the 10MW PPA in order to progress. Others have indicated a preference for the 10MW PPA to be concluded prior to moving forward. Tlou is not in a position to influence these third‐party internal processes and therefore cannot estimate how long this may take. Once a project finance package is in place and it is commercially prudent, significant work on the transmission lines and sub‐station can be conducted. On the 10 MW PPA, confidential negotiations are continuing and progress is being made. A market update will be provided in due course.” Gilby revealed.
Going forward, the Company’s primary objective is to progress the Lesedi gas‐to‐power project. Development of hydrogen is planned to run in tandem and with time could develop into a lucrative opportunity for the Company given the availability of Tlou’s gas and solar power.