Tlou Energy has commissioned its Kala Data Centre in Botswana, marking the first commercial revenue from its Coal Bed Methane gas resources and validating its integrated gas-to-power strategy.
- Kala Data Centre fully commissioned and operational
- First revenue generated from Coal Bed Methane gas in Botswana
- Gas from Lesedi 4 well powering data centre generators
- Proof-of-concept phase confirms gas-to-power strategy
- Plans underway for scaling up power generation and solar integration
A Milestone for Tlou Energy
Tlou Energy Limited has reached a significant milestone with the successful commissioning of its Kala Data Centre in Botswana. This development marks the first time the company has generated commercial revenue from its Coal Bed Methane (CBM) gas resources, a crucial step in realising the potential of its Lesedi Project.
The data centre is now fully operational, with power generators connected to the gas gathering line and fuelled by gas from the Lesedi 4 production well. This initial revenue generation, while modest and proof-of-concept in scale, demonstrates Tlou’s ability to convert its CBM gas into practical energy solutions.
Validating the Gas-to-Power Strategy
The commissioning of the Kala Data Centre validates Tlou Energy’s integrated gas-to-power approach, which encompasses upstream gas production, power generation, and downstream monetisation. This end-to-end capability is a rare achievement in the region and sets a strong technical and commercial foundation for future expansion.
Interim Managing Director Colm Cloonan emphasised the significance of this achievement, highlighting years of technical work and infrastructure development that have culminated in this first commercial monetisation of CBM gas in Botswana. The company now has a tangible platform to build upon for scaling operations.
Looking Ahead: Expansion and Optimisation
Looking forward, Tlou Energy is focused on disciplined operational ramp-up and infrastructure growth. Key near-term priorities include optimising current gas-to-power operations, scaling generation capacity, completing grid connections to enable power sales, and integrating solar photovoltaic systems starting with 1MW and expanding towards 5MW.
Additionally, the company plans to advance reservoir modelling and undertake further core drilling to support the next phase of gas development. These steps, contingent on securing appropriate funding, could significantly strengthen Tlou’s market position and enhance its contribution to Botswana’s energy security.
While the initial revenue is modest, the successful commissioning of the Kala Data Centre is a clear signal that Tlou Energy’s vision for commercialising CBM resources is gaining momentum. Investors and stakeholders will be watching closely as the company moves from proof-of-concept to broader commercial operations.
Bottom Line?
Tlou Energy’s first revenue from CBM gas is just the start, scaling up and funding will define the next chapter.
Questions in the middle?
- How quickly can Tlou Energy scale up its gas production and power generation capacity?
- What funding strategies will the company pursue to support infrastructure expansion?
- When will the Kala Data Centre connect to the national grid for broader power sales?