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Botala Energy bringing much needed gas and solar energy to southern Africa

Published 20/11/2024, 02:45 pm
© Reuters.  Botala Energy bringing much needed gas and solar energy to southern Africa
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Southern Africa has less than six years left to meet United Nations’ Sustainable Development Goal 7 of “access to affordable, reliable, sustainable and modern energy for all”, so addressing the region’s ongoing energy crisis is more urgent

More than 600 million Africans cannot access electricity and a lack of reliable energy continues to hurt socio-economic development in the region with southern African countries particularly struggling to achieve universal energy access and clean-energy transitions.

The energy situation across the continent is broadly characterised by weak infrastructure, underfunding, low access to reliable and clean energy, and unequal access, with supply largely focused on urban areas.

In many countries, insufficient power generation is a major drag on development goals, the functioning of basic public services and quality of life.

The ongoing energy crisis has led to severe rolling blackouts, or 'load shedding', which have significant impact on the region's economies.

In 2023, South Africa’s public experienced an average of five hours of power loss per day, negatively impacting productivity and safety.

Load shedding has also become a norm in Zimbabwe, which is experiencing up to 19 hours of load shedding at a time.

In Mozambique — one of southern Africa's largest energy producers — some 70% of the population is without access to modern energy services. Despite its efforts to expand access to electricity in line with the UN SDGs, the country is facing an energy crisis.

Meanwhile, Zambia is experiencing its own unprecedented energy crisis due to falling water levels in its hydroelectric power stations.

Botala poised to meet demands

An emerging leader in Botswana’s energy sector, Botala Energy Ltd (ASX:BTE) is developing a sustainable, integrated energy strategy to meet growing energy demands with a vision of energy security in Southern Africa.

Botala Energy is unlocking the potential of coal bed methane (CBM) combined with solar energy to produce a low-cost, lower-emitting and stable energy source in Botswana.

The gas exploration and development company aspires to be a clean energy producer using the coal bed methane (CBM) potential of the Serowe Project in Botswana combined with solar power generation.

Gas and solar play a critical role in presenting short-, mid- and long-term solutions to the energy and power crisis.

The company is focused on commercial gas production, liquefication and/or compression of gas, pipelines and establishing two strategically located energy hubs — each with substantial solar components and LNG production and distribution capacity.

This will enable Botala to meet local demand and export electricity and especially LNG to South Africa and neighbouring countries. It says that with the gas shortage in South Africa, it is focused on expediting LNG production.

This development is already severely needed but making the case further is news that South Africa’s biggest chemicals and energy company, Sasol, plans to stop supplying gas to major industrial customers by 2027 due to its depleting gas reserves in Mozambique.

Botala Energy has strengthened its position in the regional market this year, including the expansion of its coal bed methane (CBM) resources and securing a new 4-megawatt solar project as it works to become a pivotal energy player in Southern Africa.

Serowe Coalbed Methane Project

Botala Energy is developing the now 100%-owned Serowe CBM Project in the Central District of Botswana.

Enhanced mapping techniques and exploration drilling, have resulted in a 42% increase in certified contingent CBM resources at the Serowe CBM Project, which the company says is a testament to the untapped potential in Botswana.

An independent wellfield feasibility study has outlined development options for the Serowe CBM Gas Project, with modelling of development options, risks and costs confirming the commercial potential of using gas to generate electricity and especially to produce LNG.

Feasibility studies for the Serowe wellfield confirm strong economic potential, with plans for a five-well pilot capable of generating up to 10 MW of electricity. Downstream options include gas compression, liquefaction and integration into hybrid power systems, offering Botala diverse pathways for monetising its CBM resources.

This project now has identified an independently certified (2C) resource of 454 billion cubic feet in the immediate vicinity of 11 wells drilled within these tenements and a total prospective resource of more than 7 trillion cubic feet.

The independently validated resources bolster the project’s potential to contribute to Southern Africa’s energy requirements as regional demand for natural gas rises.

Gas quality testing at the Serowe CBM Project revealed high methane purity of up to 94%, with minimal impurities, further enhancing the project’s commercial appeal — results that support Botala's focus on CBM as a sustainable and cost-effective energy source.

The company is now in advanced discussions with large local partners to fast-track development and meet market demand.

Botala is undertaking further exploration and appraisal work to prove up the CBM field in preparation to produce CBM in commercial quantities. In parallel, it is developing renewable energy opportunities to combine with CBM electricity generation and reduce carbon emissions.

Solar power projects

Botala recently boosted its renewable energy portfolio, being awarded a 4 megawatt (MW) solar power project by the Botswana Power Corporation.

The project, within Botala’s Serowe Energy Hub, will integrate with a planned 20 MW hybrid gas-solar facility. The initiative also includes a commitment to reinvest 1% of revenue into community programs in Serowe, supporting local employment and sustainable development.

Botala also received environmental approval for its Leupane Energy Hub, a 1,520-hectare development near Palapye, set to host a 500 MW solar facility and a 200 MW gas-fired power plant.

The initial phase includes a 250 MW solar project in partnership with AAAS Energy BV, positioning Leupane as a key contributor to Botswana's evolving energy landscape.

“Winning the tender for our 4MW solar project and securing environmental approval for the Leupane Energy Hub were major milestones. These achievements take us one step closer to realising our vision of a Botswana-led, energy-secure Southern Africa, said Botala CEO Kris Martinick.

“Looking ahead, we are focused on the completion of commercial agreements and advancing the gas project into the next stage of development.”

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