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Botala Energy has a productive quarter, advancing its energy strategy with expanded CBM resources and solar project

Published 01/11/2024, 11:47 am
Updated 01/11/2024, 12:00 pm
© Reuters.  Botala Energy has a productive quarter, advancing its energy strategy with expanded CBM resources and solar project

During the September quarter, emerging leader in Botswana’s energy sector Botala Energy Ltd (ASX:BTE) strengthened its position in the regional market by expanding its coal bed methane (CBM) resources and securing a new 4-megawatt solar project.

Pivotal player in Southern Africa

These wins further the company's ambitions to develop a sustainable, integrated energy strategy to meet growing demands across Southern Africa.

“This quarter has set Botala on an accelerated path to becoming a pivotal energy player in Southern Africa,” said CEO Kris Martinick.

Following enhanced mapping techniques and exploration drilling, the company’s Serowe CBM Project saw a 42% increase in certified contingent CBM resources.

The increase, independently validated by Sproule, bolstered the project’s potential to contribute to Southern Africa’s energy requirements as regional demand for natural gas rises.

Botala also 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.

Sustainable alternatives

The initiative also includes a commitment to reinvest 1% of revenue into community programs in Serowe, supporting local employment and sustainable development.

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.

These results support Botala's focus on CBM as a sustainable and cost-effective energy source.

During the quarter, 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.

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.

Expanding and advancing

In the coming months, Botala will focus on securing offtake agreements, expanding its pilot projects, and advancing solar infrastructure, as it pursues a vision of energy security in Southern Africa through an innovative, Botswana-led approach.

“Our 42% increase in CBM resources is not just a boost to our portfolio: it’s a testament to the untapped potential in Botswana,” Martinick continued.

“With this resource growth, Botala is poised to meet the surging energy demands in the region.

“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.

“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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