Botswana plans to develop and pilot a coal-bed methane gas-fuelled power plant as the country battles to beat electricity shortages, the energy ministry announced on Tuesday.
In a statement, the Ministry of Mineral Resources, Green Technology and Energy Security said two companies – Sekaname and Tlou Energy – have been shortlisted by the Public Procurement Disposal Asset Disposal Board (PPADB) to develop the project.
It said negotiations are expected to between PPADB and the two companies to identify the winning contractor.
“As per the PPADB Act, the negotiations outcomes will go through an approval process by PPADB prior to awarding of the tender,” the ministry said.
Coal bed methane gas is a clean energy source capable of earning Botswana carbon credits and positively improving the country’s energy mix, the ministry said.
It further stated that the project is a Botswana government initiative geared towards facilitating development of gas industry in the country.
The southern African nation has a significant energy shortage and generally relies on imported power to meet its power requirements.
KO/jn/APA