(Gaborone, Botswana) – The U.S. Trade and Development Agency (USTDA) awarded a grant to Kalahari Energy Botswana in support of the development of a power plant in Botswana that will generate electricity using indigenous coalbed methane.

The project includes a CBM-fired power plant with a nameplate capacity of 110 MW powered by gas engines, a supporting gas-field extraction and processing facility to supply gas to the power plant and a 220 kV transmission line to evacuate the power to the Serule substation. The project is located in the Central Kalahari Karoo Basin.

The project will bring critically important additional power to Botswana’s electrical grid and will have a significant impact on the economy of Botswana as it will provide a springboard from which to commercialise the significant CBM resources in Botswana whilst reducing the country’s carbon footprint. The project will create employment opportunities for between 1,200 and 1,500 workers during the construction phase.

Kalahari Energy Botswana, the project owner, appointed Prana Energy (www.pranaenergy.co.za) as Project Developer to develop the project from the inception stage through to financial close.  Prana Energy leads an experienced international project development team with a proven track record of delivering successful natural gas and CBM projects, comprising (amongst others):

• Owners Team Consultation (ownerteamconsult.com) – conceptual engineering design and project management; and
• Advanced Resources International Inc (adv-res.com) – reservoir modelling and well-field design;

“USTDA is helping enhance Botswana’s energy security and economic growth” said Thomas R. Hardy, USTDA’s Acting Director. “This project will build upon USTDA’s commitment to working with our partners in Botswana to develop and expand the country’s natural gas options.”

“The United States is proud to support this project, which could be the first step toward energy independence for Botswana” said Craig Cloud, U.S. Ambassador to Botswana.

“Kalahari Energy Botswana and Prana Energy is delighted to have the support of USTDA, especially in light of the significant positive impact the project will have on the economy of Botswana.” said Chris Scales, CEO of Kalahari Energy Botswana.

For more information, visit www.keb.co.bw, contact Chris Scales (CEO of Kalahari Energy Botswana)  at +26 72871673 or Johan Posthumus (CEO of Prana Energy) at +27 82 466 2452.

Strategic engagement will create opportunities for U.S. companies

(Gaborone, Botswana) – Today, the U.S. Trade and Development Agency awarded a grant to Kalahari Energy Botswana for a feasibility study of a power plant that will generate up to 100 megawatts of electricity using indigenous coalbed methane. The project, located in the Central Kalahari Karoo Basin, will bring critically important additional power to Botswana’s electrical grid. Kalahari Energy selected the U.S. company Advanced Resources International, Inc. to conduct the study.

“USTDA is helping enhance Botswana’s energy security and economic growth, while creating opportunities for U.S. companies to develop world-class infrastructure,” said Thomas R. Hardy, USTDA’s Acting Director. “This project will build upon USTDA’s commitment to working with our partners in Botswana to develop and expand the country’s natural gas options.”

“The United States is proud to support this feasibility study, which could be the first step toward energy independence for Botswana and the literal fuel for the country’s aspirations toward being a net exporter of electricity in the region,” said Craig Cloud, U.S. Ambassador to Botswana.

“USTDA has played an instrumental role over the past 15 years in the development process of coalbed methane in Botswana,” said Chris Scales, Director of Kalahari Energy. “Initially by sponsoring a tour by Botswanan government officials to the U.S. to gain an understanding of coalbed methane, then through grant funding for a technical and economic feasibility study for the development of coalbed methane in Eastern Botswana, and now for this specific project, which will have major benefits for the country in so many aspects.”

About USTDA

The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.

MEDIA INQUIRIES: Jonathan Wilcox at (703) 875-4357

Source URL: https://ustda.gov/news/press-releases/2020/ustda-supports-coalbed-methane-fueled-power- plant-botswana

The following press release was issued by the Ministry of Mineral Resources, Green Technology and Energy Security on Thursday 10 October 2019 in respect of the tender issued July 2018 for the development of a maximum of 100 MW coal-bed methane fuelled power plants in Botswana as an Independent Power Producer:

MMEWR 1/12/4 I (199)                                                                                      10 October 2019

To All Media Houses

PRESS RELEASE

UPDATE ON THE DEVELOPMENT OF COAL BED METHANE FUELLED PILOT POWER PLANTS IN BOTSWANA

The Ministry of Mineral Resources, Green Technology and Energy Security wishes to assure interested stakeholders that it remains committed to the development of the Coal Bed Methane (CBM)-fuelled pilot power plants.

Pre-negotiation discussions between the Government and the two companies, Sekaname and Tlou Energy who have been selected as preferred bidders by the Public Procurement and Asset Disposal Board (PPADB) are ongoing. The Government is also in the process of acquiring a transactional advisor who will assist in the negotiation.

The project is a Government initiative geared towards facilitating development of the local gas industry.

Further information on the pilot project can be obtained from the Ministry’s Public Relations Office at 3656698.

Source: The Botswana Ministry of Mineral Resources, Green Technology and Energy Security (Thursday 10 October 2019).

The following press release was issued by the Government of Botswana on Friday 7th June 2019 in respect of the tender issued July 2018 for the development of a maximum of 100 MW coal-bed methane fuelled power plants in Botswana as an Independent Power Producer:

The Ministry of Mineral Resources, Green Technology and Energy Security wishes to inform members of the public, that development of Pilot Coal Bed Methane (CBM) fuelled power plants is still undergoing procurement and progressing well.

Following approval of two companies; Sekaname and Tlou Energy as Preferred Bidders for the project by the Public Procurement and Asset Disposal Board (PPADB), negotiations with the two are due to start in earnest.

As per the PPADB Act, the negotiations outcomes will go through an approval process by PPADB prior to awarding of the tender.

CBM is a clean energy source capable of earning the country carbon credits and positively improve the country’s energy mix.

This project is a Government of Botswana initiative geared towards facilitating development of the gas industry in Botswana.

For more information contact Public Relations Office; 3656698

Thank You.

[Signed]
Moreri Moesi
Chief Public Relations Officer

Source: The Botswana Ministry of Mineral Resources, Green Technology and Energy Security (Friday 7th June 2019).

Kalahari Energy Botswana awarded preferred bidder status for the construction of a 97MW Coal Bed Methane (CBM) fuelled IPP-owned power station.

Kalahari Energy Botswana (www.keb.co.bw), through its wholly-owned subsidiary Sekaname (Pty) Ltd, has been notified by the Ministry of Mineral Resources, Green Technology and Energy Security that it has been awarded Preferred Bidder status for the construction of a CBM-fuelled, IPP-owned power plant in Botswana. This notification follows from the Group’s submission in October 2018 to tender “for the development of a maximum of 100 MW coal-bed methane fuelled power plants in Botswana as an Independent Power Producer”.  

Sekaname submitted a bid for 97MW and its rival in the closed tender process – Tlou Energy – submitted a bid for 2MW scalable to 10MW over time. Tlou Energy has also been awarded Preferred Bidder status.

The award to Kalahari Energy leads to negotiations with the procuring authority and provides for the design, procurement and construction of the first CBM-fuelled power plant in Botswana, creating employment opportunity for between 1,200 and 1,500 workers during the construction phase.

The project will have a significant impact on the economy of Botswana as it will provide a springboard from which to commercialise the significant CBM resources in Botswana whilst reducing the country’s carbon footprint.  

Key terms of the bid are:  

• The Kalahari Energy power-generation facility will operate as an Independent Power Producer
• The Kalahari Energy power-generation facility will enter into a 30-year Power Purchase Agreement with the Botswana Power Corporation; and
• The Botswana Government will provide a credit-enhancement mechanism to make the project bankable.

The tender submission for the project included a CBM-fired power plant with a nameplate capacity of 110 MW (gas engines), a supporting gas-field extraction and processing facility to supply gas to the power plant and a 220 kV transmission line to evacuate the power to the Serule substation.

In 2017 Kalahari Energy, as the project owner, appointed Prana Energy (www.pranaenergy.co.za) as Project Developer to facilitate its response to the closed tender RFP and delivery of the subsequent project award through to financial close.  Prana Energy leads an experienced international project development team with a proven track record of delivering successful natural gas and CBM projects, comprising (amongst others):

• Owners Team Consultation (www.ownerteamconsult.com) – conceptual design engineering and project management;
• Advanced Resources International Inc (www.ari-res.com) – reservoir modelling and well-field design;
• Eaglestone Capital (www.eaglestone.eu) – financial modelling, capital structuring and fund-raising; and
• Ecosurv (www.ecosurv.com) – leading the EISA process on behalf of Kalahari Energy.

For more information,  visit www.keb.co.bw.  or contact Chris Scales +267 318 0272 or Johan Posthumus +27 82 466 2452.