Botala Energy Ltd. (ASX:BTE) and AAAS Energy BV, a Sub-Saharan Africa-focused solar developer, have entered into an agreement to assess the viability of installing up to 250 MW of solar capacity at an energy hub currently under development in Botswana.
The contemplated project will be realised at Botala’s Leupane Energy Hub and Industrial Park near the town of Palapye. The site could end up accommodating up to 500 MW of solar energy and 200 MW of gas-fired power generation.
The two partners will now work to finalise a bankable feasibility study (BFS) by the end of 2024 to determine the project cost, along with the ownership and funding structures for a final investment decision (FID).
Part of the BFS will also consider possible off-takers in the Southern African region as well as the potential for developing the project as a merchant power station. The outcome of the study will ascertain whether the companies will potentially embark on further solar capacity development under similar terms.
The Leupane Energy Hub is positioned to emerge as a cornerstone for renewable and gas-fired power generation in the region, according to Botala. AAAS will farm- in 50% of the project for AUD 1 million (USD 650,000/EUR 609,000).
The Australia-based firm, with a focus on Botswana, has finished conducting grid connection studies for the project and has completed the public review phase of its environmental impact assessment (EIA). The EIA encompasses various components, including a hybrid power station, a solar panel factory, LNG and/or CNG plants, offices, and mixed-use agriculture.
