Tlou generates first electricity from gas in Botswana
Staff Writer | Wednesday June 21, 2017 17:35
The Australian company announced yesterday that it is now powering generators at its Selemo pilot project in Mmashoro using CBM as it works towards advancing Botswana’s first gas-fired power station that would feed into the national grid.
“Producing the 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. CBM gas is a cheaper and cleaner alternative to diesel generation and is significantly cleaner than coal fired power generation,” Tlou’s managing director, Tony Gilby said.
The company has the most advanced CBM project in Botswana, the Lesedi Project, and already benefits from significant, independently certified Contingent Gas Resources of ~3.2 trillion cubic feet (3C) and independently certified Gas Reserves.
Tlou has been producing gas at Selemo for approximately 12 months and says using gas at its project will reduce the company spend on diesel by about 50,000 litres per annum.
Speaking at the Botswana Resource sector conference last week, Tlou’s executive director, Gabaake Gabaake said they would submit a bid to government for the 100MW CBM tender in July. Government has flighted a Request for Proposal (RFP) for the development of up to 100MW of gas power.
Tlou, which holds 10 prospecting licences covering an area of 8,300 square kilometres in Botswana, is one of two companies selected to bid for the development of up to 100MW of power using CBM as an independent power producer.
The government has developed this initiative to allow companies such as Tlou to develop pilot plants and facilitate the development of their CBM resource to levels that may lead to the supply of gas to the state-owned 90MW Orapa power plant, which is situated approximately 150km to the north of the Lesedi CBM Project.
In 2015, government floated tender inviting companies to express interest in the supply of gas to the Orapa 90MW power station.
The dual fuel power station is currently running on diesel and the tender is part of plans to convert the plant to CBM. This is expected to reduce the cost of producing electricity at the power station by up to 60%.
It is estimated that the two turbines of the power plant consumes up to 17,000 litres of diesel per hour at peak use. Conversion of the power plant to CBM is estimated to reduce the costs of producing electricity from 24 cents (P2.40) per kilowatts to about 10 cents (100 thebe) per kilowatt.
In the next five years government hopes to deliver up to 800MW of power through independent power producers using coal, solar and CBM resources.