Lesedi to connect to National Grid in early 2025
Botswana’s dream of producing power from Coal Bed Methane (CBM) is edging ever closer, with Tlou Energy confident of connecting to the national grid early next year.
In a report on their quarterly activities issued on the Botswana Stock Exchange (BSE) this week, the Australian-based company revealed its downstream activities, including the grid connection power line for the Lesedi substations and generators, are nearing completion in Serowe.
The Lesedi development, expected to bring in annual revenue of P133 million, involves gas production, electricity generation, substation construction, transmission and sale of electricity.
The 66kV power line connecting Lesedi to the Serowe substation is virtually finished and is designed to take up to 25MW of power.
Minor finishing works, notably the addition of a switchgear (a device that controls, protects and isolates power systems) at the Serowe substation, will be carried out prior to the line being energized.
The power line is effectively under care and maintenance until Tlou is ready to bring it online. Once sparked into life, the line is expected to provide Tlou Energy with access to both the Botswana power market as well as the Southern African Power Pool.
By the end of September, the Lesedi substation was approximately 85 percent complete, while Serowe extensions are ready for commissioning, with final completion anticipated later this year.
The Lesedi substation is designed for rapid expansion, enabling Tlou to scale-up from 10MW to 25MW.
The Botswana Power Corporation (BPC) has already signed a power purchase agreement with Tlou, with part of the deal including supplying a 5MVA transformer.
However, future expansion will require Tlou to procure and install larger transformers, such as two 20MVA transformers to allow for more power to be produced.
In a brief statement, the company’s Managing Director (MD), Tony Gilby, confirmed all was on schedule.
“Work has been ongoing at Lesedi for some time, with the project targeting the first power generation expected in mid-2025. Lesedi remains at the forefront of Botswana’s gas-to-power sector, making substantial progress in the development of the proposed 10 MW gas-to-power project,” Gilby said.
Although financially challenged, Tlou’s major shareholder, Ian Campbell, has indicated his willingness to provide funding worth P44 million, to advance gas production operations with the power station expected to be installed, commissioned and tested for approval in 2025.
“This is subject to receiving adequate financing and achieving sufficient and consistent gas flow from existing and proposed production wells,” Gilby added.
The Lesedi development is located on Tlou’s 40 Km2 property which forms part of the Independent Power Producer’s (IPP) 800 Km2 mining and production licence, valid until 2042.
Additionally, all prospecting licences due for renewal in the past year were successfully renewed.
Tlou’s prospecting licences span over 8, 000 Km2, ensuring continued exploration and development potential across a vast area.
WHAT IS COAL BED METHANE?
Most coal has some methane (the main component of natural gas) trapped inside it.
This methane is produced during the coal formation process (the transformation of plant material into coal) and gets trapped on the surface of the coal in tiny pores and fractures.
Many coalbeds also contain large amounts of water; the pressure from this water keeps the methane in place.
Coalbed methane is extracted by pumping out the water, which lowers the pressure, allowing the gas to detach from the coal surface and flow out into the well.
Coal Bed Methane (CBM) is considered a valuable energy resource with reserves and production having grown nearly every year since 1989.
Varied methods of recovery make CBM a stable source of energy.
