Tlou Energy, a listed power developer that is focused on delivering power in Botswana and Southern Africa through the exploration and development of gas and solar power, is still searching for funding to take off its project.
The company is currently seeking funding for its project, Lesedi Power Project which will be developed into two phases.
The project is divided into two phases, and the first phase will require US$10 million for the generation of 2 Megawatts (MW) of electricity.
This phase involves the construction of a transmission line, transformers, grid connection, electricity generators and potentially the drilling of additional gas wells.
The 100km transmission line will run from the Lesedi project to Serowe where it will connect to the existing power grid.
The second phase has mostly to do with the expansion for electricity generation of up to 10MW and will involve drilling additional gas wells and the purchase of more electricity generators and this will require about US$20 million.
Once both phase one and two are complete, Tlou plans to expand the project beyond 10MW and will be done using project revenues and debt.
The company says the current discussions are centred on US$10 million and said to be progressing well.
“The company is in discussions with a number of groups, some more advanced than others. These include institutions with a focus on infrastructure development within Botswana and cleaner energy groups looking to see a move away from coal-fired generation,” said Anthony Gilby, Managing Director of Tlou.
According to Gilby, the company has been in discussions for months with Botswana Development Corporation for months now.
“The company understands that BDC is seeking internal investment approval and the company continues to work with BDC to successfully conclude a funding proposal that fits within BDC’s investment parameters,” he said.
In addition, Gilby says Tlou has recently received an indicative term sheet for transmission line and transformer funding from a new potential financier.
He says the company will assess this offer alongside other potential financiers to evaluate the best possible option and funding partner going forward.