Tlou said it is well-positioned to produce hydrogen from different methods as it has large and proven resources to develop these products
The hydrogen economy is rapidly developing and could open multiple additional business opportunities such as solid carbon products, oxygen, ammonia for energy storage, fuel cell electric vehicles (FCEV), agricultural and medical applications, the Africa-focused firm said.
Tlou said it is well-positioned to produce hydrogen from different methods as it has large and proven resources to develop these products.
Methane for carbon and hydrogen, readily available water for hydrogen and oxygen, and virtually unlimited coalbed methane/ solar power to drive the process.
A hydrogen strategy would benefit from Tlou’s extensive approvals secured to date, including environmental, gas and solar generation licences, access to land and established in-country operational expertise, the energy company added.
The group is in discussions with parties in relation to a US$10mln (£7mln) project finance package for the initial phase of the Lesedi gas-to-power project which includes construction of transmission lines and sub-stations.
Two of these parties are currently working through their internal approval processes and have not expressed a specific need to conclude the 10MW power purchase agreement (PPA) in order to progress. Others have indicated a preference for the 10MW PPA to be concluded prior to moving forward.
Tlou said it is not in a position to influence these third-party internal processes and therefore cannot estimate how long this may take.
Once a project finance package is in place and it is commercially prudent, significant work on the transmission lines and sub-station can be conducted, it noted.
On the 10MW PPA, confidential negotiations are continuing and progress is being made, Tlou said.
The primary focus for the company is to progress the Lesedi gas-to-power project.
Development of hydrogen is planned to run in tandem and with time could develop into what Tlou said is a lucrative opportunity given the availability of Tlou’s gas and solar power.
Read More: Tlou Energy Ltd plans hydrogen strategy to complement gas-to-power project