TIDMTLOU
RNS Number : 1786P
Tlou Energy Ltd
16 February 2021
16 February 2021
Tlou Energy Limited
("Tlou" or "the Company")
Tlou seeking Carbon Neutrality
Tlou Energy Limited is an ASX, AIM and BSE listed company
focused on delivering cleaner electricity in Botswana and southern
Africa using gas and solar power. The Company's first proposed
development is the Lesedi Power Project ("Lesedi"). The Company is
aiming to make Lesedi a carbon neutral project.
Key points
-- Tlou progressing towards having the first carbon neutral power project in Botswana.
-- Plans to combine gas, solar and carbon sequestration.
Tlou Energy is working towards the goal of being the first
carbon neutral baseload power project in Botswana by advancing land
acquisition. Whereas the Company has already negotiated land access
and leasing agreements with relevant landholders for the power
generation facility and a new field operations camp, recent steps
have been taken to acquire additional land for carbon
sequestration. The availability of land and labour within the
Lesedi project area is viewed favourably by the Company for
developing a carbon neutral power project.
Tlou's Managing Director, Mr Tony Gilby commented, "There is
considerable scope for using the savanna ecosystem of the Lesedi
region for carbon sequestration by protecting it from burning and
intensive grazing leading to an increase in the ability of the
vegetation to store carbon over time. This will assist Tlou to be
able to supply carbon neutral power to the considerable number of
potential customers in the region. A significant regional power
consumer, the Orapa diamond mine operated by Debswana and located
north of Tlou's gas fields has publicly stated their objective to
decrease their carbon footprint."
About Carbon sequestration
Carbon sequestration involves capturing and storing carbon
dioxide from the atmosphere so that it potentially reduces its
contribution to global warming. It is essentially the long-term
storage of carbon in soil, plants, geological formations or oceans.
Carbon sequestration can occur naturally and as a result of human
activities and typically refers to the storage of carbon that has
the immediate potential to become carbon dioxide gas. Due to
concerns about climate change resulting from increased carbon
dioxide in the atmosphere, considerable interest has been drawn to
the possibility of increasing the rate of carbon sequestration
through changes in land use.
Carbon sequestration and the Lesedi Power Project
The Lesedi project area can be considered as shrub savanna
containing various tree species. The subdivisions found within
Tlou's project area are predominantly rural with most of the land
being deployed for livestock agriculture. Tlou is in the process of
negotiating the acquisition of land to reduce livestock numbers and
implement fire mitigation measures. This will substantially
increase the amount of available woody biomass which can be used to
claim carbon credits within the project area.
Carbon credits can then be offset against the carbon dioxide
associated with Lesedi's gas fired power generation component
noting that gas will in any event produce considerably less carbon
dioxide compared with that generated by coal and diesel. Balancing
Tlou's associated carbon dioxide production with carbon
sequestration methods would make Tlou the first carbon neutral
power producer in Botswana.
Environmental, Social and Governance (ESG)
Carbon reduction is another example of Tlou's commitment to the
environment and part of the Company's vital ESG program aimed at
enhancing the lives of the local population and regional
communities. Tlou has a track record of supporting local charities
and youth groups and looking to grow local employment with
investment in community ventures. This includes programs aimed at
growing higher nutritional value crops for local livestock so
grazing could be reduced and biomass preserved, as well as
promoting wildlife. Recently the Company supported Botswana's small
stock initiative aimed at helping farmers commercialise their
production.
Tlou is currently awaiting environmental approval to facilitate
commencement of exploration and evaluation operations in the
Boomslang project area. These operations could be run in tandem
with development operations at the Lesedi project, where
environmental approval is already in place. Work at Tlou's
Boomslang and Mamba project areas is aimed at developing additional
power projects that, like Lesedi are planned to produce cleaner
power, create employment and benefit the local and regional
population.
By Authority of the Board of Directors
Mr. Anthony Gilby
Managing Director
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
Tony Gilby, Managing Director
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Solomon Rowland, General Manager
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+44 (0)20 7383
Grant Thornton (Nominated Adviser) 5100
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Colin Aaronson, Harrison Clarke, Samantha Harrison,
Seamus Fricker
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+44 (0) 207 408
Shore Capital (Broker) 4090
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Jerry Keen, Toby Gibbs, John More
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Company Information
Tlou Energy is focused on delivering power solutions to Botswana
and southern Africa to alleviate some of the chronic power shortage
in the region. Tlou is currently developing projects using gas and
plans to add solar power projects to provide a cleaner power
source.
Botswana has a significant energy shortage and generally relies
on imported power and diesel generation to fulfil its power
requirements. Tlou's Lesedi power project provides investors with
access to a compelling opportunity to displace expensive, carbon
intensive diesel and imported coal-fired electricity with a more
environmentally friendly alternative.
In addition to plans for cleaner energy, the Company is also
committed to developing community projects in Botswana adding real
value to peoples' lives in a region with sparse services and where
few opportunities exist for the local population. The Company aims
to assist communities to become self-sustaining, develop business
opportunities, improve access to education and create opportunities
for self-employment and wealth creation.
The Company is listed on the Australian Securities Exchange,
London's AIM market and the Botswana Stock Exchange and is led by
an experienced Board, management and advisory team.
The project is significantly de-risked. The Company produced its
first gas in 2014, has a Mining (or development) Licence valid to
2042 and 10 Prospecting (or exploration) Licences. The Company's
project acreage covers a vast area spanning approximately 9,300
Km(2) in total.
Tlou's 'Lesedi' and 'Mamba' projects already benefit from
significant independently certified 2P gas Reserves of 41 Billion
Cubic Feet (BCF). In addition, 3P gas Reserves of 427 BCF and
Contingent Gas Resources of 3,043 BCF provide significant
additional potential.
The Company is planning an initial scalable power project.
Following successful implementation of this first scalable project,
the Company looks forward to evaluating longer-term prospects for
the delivery of additional electricity to Botswana and to
neighbouring countries.
Forward-Looking Statements
This announcement may contain certain forward-looking
statements. Actual results may differ materially from those
projected or implied in any forward-looking statements. Such
forward-looking information involves risks and uncertainties that
could significantly affect expected results. No representation is
made that any of those statements or forecasts will come to pass or
that any forecast results will be achieved. You are cautioned not
to place any reliance on such statements or forecasts. Those
forward-looking and other statements speak only as at the date of
this announcement. Tlou Energy Limited undertakes no obligation to
update any forward-looking statements.
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END
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