viewTlou Energy Limited

TLOU Energy shares soar as it lands interim power purchase agreement in Botswana

The move is a “major step forward” as puts the company on a path to its first revenues

Tlou Energy Limited - TLOU Energy shares soar as it lands interim PPA in Botswana

TLOU Energy Ltd (LON:TLOU) shares rocketed on Friday as it landed an interim power purchase agreement (PPA) for its coal bed methane fuelled gas-to-power project in Botswana.

The company said that the interim PPA had been agreed with the Botswana Power Corporation (BPC) and is now undergoing final regulatory formalities.

It added that the commercial terms remain confidential, at BPC’s request.

READ: Tlou to significantly reduce costs and focus on PPA

In a statement, TLOU described the move as a “major step forward” as it will facilitate connection to the power grid and the company’s first revenues.

TLOU noted that it remains in talks with potential project finance partners, who had been waiting to see whether the PPA would be secured.

“A pathway to revenue generation is key for financiers and once connected to the grid, expansion of the project (and thereby increasing revenue) is seen as a relatively straightforward and largely de-risked process,” it added.

The interim PPA is for 2 megawatts. TLOU said the interim PPA is separate to its proposal for a 10MW gas-to-power plant, submitted to Botswana's Ministry of Mineral Resources Green Technology and Energy Security (MMGE).

The BPC and MMGE continue to assess the 10MW proposal and will advise the Company in due course, the group added.

Quick facts: Tlou Energy Limited

Price: 3.8 GBX

Market: AIM
Market Cap: £19.96 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tlou Energy Limited named herein, including the promotion by the Company of Tlou Energy Limited in any Content on the Site, the Company...


Tlou Energy's Tony Gilby hails receipt of interim power purchase agreement

Tlou Energy Ltd's (LON:TLOU) Tony Gilby speaks to Proactive London's Andrew Scott after confirming they've received an interim power purchase agreement (PPA) for its coal bed methane fuelled gas-to-power project in Botswana. He says the interim PPA has been agreed with the Botswana Power...

on 6/4/20

2 min read