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Tlou Energy Ltd (TLOU)

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Monday 07 February, 2022

Tlou Energy Ltd

Lesedi Project Update

RNS Number : 8152A
Tlou Energy Ltd
07 February 2022
 

7 February 2022

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Award of 10MW Generation Licence and Project Update

 

 

Tlou is developing clean energy solutions for Botswana and the sub-Saharan region.

Key points

Ø Transmission Line construction set to commence

Ø 10MW Generation Licence awarded

 

Transmission Line

Tlou is pleased to announce that work is set to commence on the transmission line and substations to connect the Lesedi power project ("Lesedi") to the electricity grid.

 

As announced late last year, funding has been secured for the construction of the transmission line and substations from our largest shareholder (Botswana Public Officers Pension Fund) and since that time the relevant contractors have been updating their tenders to reflect any cost adjustments since their original submissions. This process is largely complete and following final signatures the work is set to commence.

 

Project Construction

The Lesedi project is located approximately 100Km from the existing electricity grid. The development will include the erection of wooden poles fitted with an overhead 66kV transmission line. In addition, substations will be installed at Lesedi and close to Serowe. The Lesedi substation will integrate the generation assets with the transmission line and the Serowe substation will tie in with Botswana Power Corporation's existing infrastructure.

The transmission line route has been surveyed and full environmental approval is in place. The line will predominantly cross flat, arid terrain with the last ~5 Km being through the outskirts of the Serowe township.

 

As previously announced, experienced contractors are being used for the project with construction of the overhead lines   by Zismo Engineering (Pty) Ltd ("Zismo") and by OptiPower for the construction of substations.

 

· Zismo is a Botswana based Electrical Engineering, Contracting, Automation and Refurbishment Company. Further information is available at http://zismoengineering.com.

 

· OptiPower is a division of Murray & Roberts Ltd. Based in South Africa, OptiPower's core business includes the construction of substations, power lines and fibre optic networks. See https://optipower.co.za for further details.

 

10MW Generation Licence

The Company recently received a 10MW Electricity Generation License from the Botswana Energy Regulatory Authority (BERA).

 

The licence has a term of 15 years and is for the generation of 10MW of power at the Lesedi project for sale to Botswana Power Corporation (BPC).

 

Project Timetable

A series of key milestones have been achieved in the past year allowing the Company to progress into the development phase and towards first revenue. A tentative timetable towards this target is set out below. This is not an exhaustive list and is subject to change and funding.

 

Proposed Timetable (TL = Transmission Line; SS = Substations; H2 = Hydrogen)

Date

Detail

1Q22

TL & SS - Mobilisation of plant & equipment, site establishment, procurement and engineering


2Q22

H2 - Hydrogen & Solid Carbon Protype unit to be completed

TL & SS - Commence installation of electricity poles

Gas-to-power - Ground works on Central Processing Facility


3Q22

H2 - Hydrogen & Solid Carbon Prototype to arrive at Lesedi

SS - Civil works, steel structures assembly, installation, and earthing

Solar - Purchase and installation of Solar PV


4Q22

SS -Electrical and mechanical works

TL - Stringing, tension, and regulation

Gas-to-power - Purchase of power generators

H2 - Initial results from the Hydrogen & Solid Carbon Prototype


1H23

TL & SS - Practical completion

TL & SS - Testing and commissioning


2H23

TL & SS - Handover to Tlou

Gas-to-power - Sale of first electricity to BPC

 

Lesedi Gas production

The Lesedi gas production wells continue to steadily perform. The Lesedi 3P ("L3") production pod was shut-in for approximately 18 months during the pandemic and was recently brought back into production following the resumption of full operations. Since resumption, L3 has already recommenced flowing gas which is a very positive indicator and the Lesedi 4P ("L4") production pod also continues to flow sustained gas. Cumulative flow rates are encouraging and we look forward to providing substantive numbers to the market as soon as practicable.

 

By Authority of the Board of Directors

Mr. Anthony Gilby

Managing Director

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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For further information regarding this announcement please contact:

Tlou Energy Limited

+61 7 3040 9084

Tony Gilby, Managing Director


Solomon Rowland, General Manager




Grant Thornton (Nominated Adviser)

+44 (0)20 7383 5100

Harrison Clarke, Colin Aaronson, Ciara Donnelly




Shore Capital (Broker)

+44 (0)20 7408 4090

Toby Gibbs, John More




Public Relations


Ashley Seller

+61 418 556 875

 

Forward-Looking Statements

This announcement may contain certain forward-looking statements.  Actual results may differ materially from those projected or implied in any forward-looking statements.  Such forward-looking information involves risks and uncertainties that could significantly affect expected results.  No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved.  You are cautioned not to place any reliance on such statements or forecasts.  Those forward-looking and other statements speak only as at the date of this announcement. Save as required by any applicable law or regulation, Tlou Energy Limited undertakes no obligation to update any forward-looking statements.

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