Tlou Energy Ltd said it is developing a hydrogen strategy to complement its Lesedi gas-to-power project in Serowe, Botswana.
The southern Africa-focused exploration and development company said it is well-positioned to produce hydrogen from different methods. Methane for carbon and hydrogen, readily available water for hydrogen and oxygen, and solar power to drive the process, Tlou said.
In addition, the company said it is in ongoing discussions with a number of parties in relation to a USD10 million project finance package for the initial phase of the Lesedi project which includes construction of transmission lines and sub-stations.
Once a project finance package is in place and it is commercially prudent, work on the transmission lines and sub-station can be conducted, Tlou said.
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Tlou Energy develops hydrogen strategy for Lesedi as it awaits financing deal
The group is in discussions with parties in relation to a US$10mln (£7mln) project finance package 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 power purchase agreement (PPA) in order to progress. Others have indicated a preference for the 10MW PPA to be concluded prior to moving forward.
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Tlou said it 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, it noted.
On the 10MW PPA, confidential negotiations are continuing and progress is being made, Tlou said.
The primary focus for the company is to progress the Lesedi gas-to-power project.
Development of hydrogen is planned to run in tandem and with time could develop into what Tlou said is a lucrative opportunity given the availability of Tlou’s gas and solar power.
Tlou Energy plans hydrogen strategy to complement gas-to-power project, 28 May 2021
