*Lesedi set to deliver millions as power project kicks in
Tlou Energy says it is moving closer to generating its first revenues, as the company advances transmission, gas and solar facilities linked to its flagship Lesedi gas-to-power project.
The move accelerated following the long delayed arrival of a generator destined for the Kala Data Centre, a development Tlou says marks a significant step towards revenue generation from Lesedi project.
A binding agreement was signed during the year with Dubai-based Kala Data FZCO to develop the data centre, diversifying revenue streams beyond electricity sales.
The 10MW gas-to-power project, scalable to 25MW, is expected to generate close to US$10 million in revenue annually once operational.
It represents the first monetization of coal bed methane in Botswana, highlighting Tlou’s technical capabilities and the commercial potential of its gas resources.
The company is on the path to generating revenue and demonstrating the viability of its development strategy, with the generator’s installation and commissioning set to commence soon.
Upon arrival at Lesedi, the generator will be installed adjacent to the data centre facility and integrated with the gas gathering line connected to the Lesedi 4 production well.
The generator will then be tied into the data centre infrastructure. Following installation, commissioning, and final operational checks, the data centre will commence operations.
Tlou expects revenue generation to begin almost immediately once the facility is brought online.
“The arrival of the generator marks a major step forward for the company. We are now firmly on the path toward first revenue from the Lesedi project. This milestone will showcase the value of our gas resource and the viability of our development strategy. We look forward to updating shareholders as commissioning progresses,” said Managing Director Colm Cloonan.
In October, Tlou reported a net loss of $4.8 million for the year, widening from $4.3million in 2024. Total assets stood at about $81.9million, with net assets of $61.4million.
However, losses were expected given the development phase. The year 2025, described as a transition to revenue by Tlou Energy due to steady progress on infrastructure-significant gains has been made with the 100 km, 66 kV transmission line connecting the Lesedi site to the national grid nearly complete, while construction of a new substation is more than 90 percent finished.
With both assets considered critical to linking Tlou’s output to end users, gas continues to flow from appraisal wells Lesedi 4 and Lesedi 6, underpinning the project’s fuel supply.
Tlou is also integrating a 1 MW solar component, with company hierachy stating that hybrid generation will both support a planned gas-powered data centre and improve reliability for customers.
