GABORONE, Aug 21 (Reuters) - Botswana has granted Tlou Energy TOU.AX a mining licence for its Lesedi coal-bed methane (CBM) project, the company's managing director said on Monday, paving way for what would be the southern African nation's first gas-to-power plant.
"The awarding of the mining licence by the ministry is a major milestone for the company, further derisks the project, and is an important prerequisite to developing the first commercial gas-to-power project in the country," Tlou Managing Director Tony Gilby said in a statement.
Coal-bed methane is a form of natural gas trapped in underground coal seams.
Tlou said it had received a request for proposal from the Botswana government to provide up to 100 megawatts (MW) of CBM power from its Lesedi project.
Botswana currently has two coal-fired power plants with a capacity to produce up to 720 MW and plans to add another 500MW in the next three years through coal, gas and solar power. (Writing by Olivia Kumwenda-Mtambo)