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(Sharecast News) - Tlou Energy announced significant progress at its flagship Lesedi power project in Botswana on Friday, with the on-site electrical substation now over 90% complete.
The AIM-traded firm said the delivery of a 5 MVA transformer on 20 November marked a key milestone toward operational readiness, with final commissioning expected by the end of the year.
It said the substation, capable of supporting 5 MW of power generation initially, was designed for expansion up to 25MW.
Gas production from the Lesedi 4 and 6 wells was ongoing, although efforts were continuing to address coal fines impacting downhole pump performance.
Achieving stable gas flow was said to be critical for sustained electricity generation.
Tlou reports certified 2P gas reserves of 40.8 billion cubic feet, with 3P reserves at 426.6 billion cubic feet, indicating significant long-term potential.
A 10 MW project was estimated to require less than 30 billion cubic feet over 25 years.
The 66kV transmission line connecting Lesedi to the Serowe substation was near completion, with minor switchgear installations remaining before energisation.
It said the line was designed to transport up to 25 MW of power, aligning with Tlou's long-term plans.
Power generation was expected to start in mid-2025, starting with 2MW and scaling to 10 MW under an existing power purchase agreement (PPA) with the Botswana Power Corporation (BPC).
The agreement included options for extension and expansion.
Discussions were underway with a global supplier to install gas-powered generators on-site, with equipment lead times of six to eight weeks from order.
Looking ahead, Tlou said it was aiming to scale Lesedi's capacity to 25MW, with potential expansion beyond this via new transmission infrastructure.
"Reliable energy is in short supply in the region and there is a dearth of new projects coming online that can provide reliable baseload power for a growing population and to support renewable projects," said managing director Tony Gilby.
"Tlou is ideally placed to meet this growing electricity demand."
At 0805 GMT, shares in Tlou Energy were up 3.12% at 0.83p.
Reporting by Josh White for Sharecast.com.
