Sekaname signs deal to supply power to BPC
Local Coal Bed Methane gas power production company, Sekaname Energy has signed a power purchase agreement to supply 6MW power to Botswana Power Corporation (BPC). This is the second coal bed methane power project signed by BPC, the first being Tlou Energy 10MW which is currently at construction stage.
Sekaname Pty Ltd Chief Executive Officer, Peter Mmusi said they have been working on the project for the past 18 years since the establishment of the company but they now look forward to bring a lot of Foreign Direct Investment (FDI) into the country through their projects. He said construction of the power line will commence soon and full supply of power is expected after a period of 18 months.“Currently we are also in the process of kicking off a Liquified Natural Gas Project along with a Hydrogen Project which will run concurrently with this power project.” Mmusi said to date Sekaname has spent US$ 57 Million in exploration and infrastructure throughout its resource area and they plan to spend another 10-15 Million dollars for this initial 6MW project. “We inevitably plan to spend in excess of US$ 500 Million (6.5 Billion Pula) once we reach our intended target of a 90 MW Powerplant in the very near future. Sekaname’s goal is to assist BPC greatly to become a net exporter of power within the region. CBM is a cleaner energy source than the coal; this will help Botswana becoming a cleaner energy producer.”
The company also plans on concurrently running its liquefied natural gas and compressed natural gas projects to push development of the local gas market, as well as exporting the Molecule to neighbouring countries. LNG is currently 40 percent cheaper than diesel as a fuel source, and some countries have started to move a lot of logistic and mining operations from diesel to liquefied natural Gas.Minister of Mineral and Energy, Lefoko Moagi said government guarantees that BPC will purchase the generated electricity at reasonable tariffs thus providing some cash flow to the developers which enables developers to raise equity and debt funding for gas extraction development. “Coal Bed Methane prospecting works have been ongoing for several years in Botswana. It is high time that the country attains commercial production of gas and develops a gas supply industry as there are significant benefits to be realised from exploitation of this primary energy resource which is in abundance.”
He said government fully supports the initiative by the private sector to develop a gas industry in Botswana taking advantage of the abundant coal reserves in the country. “In this regard, Government is supporting the Private Sector through a dispensation which grants holders of coal bed methane Prospecting Licenses to develop coal bed methane fuelled proof of concept pilot power plants aggregating to not more than 100MW.” Moagi emphasised that Coal Bed Methane prospecting works have been ongoing for several years in Botswana and it is high time that the country attains commercial production of gas and develops a gas supply industry as there are significant benefits to be realised from exploitation of this primary energy resource which is in abundance.