Botala Energy has announced a strategic partnership and Binding Heads of Agreement with AAAS Energy BV, a renowned developer of solar photovoltaic parks in Sub-Saharan Africa.
In an update to the shareholders on Friday, Botala Energy said this partnership marks a significant step towards its vision of developing renewable energy projects that are complimentary to gas.
The agreement focuses on developing up to 250MW of Solar PV capacity at Botala’s Leupane Energy Hub and Industrial Park.
According to the project overview, both parties will finalise a Bankable Feasibility Study (BFS) by the end of 2024 which will determine the project cost, and ownership and funding structures for a Final Investment Decision (FID).
Botala anticipates having no funding requirement within the next twelve months.
Initially, the Project SPV will be 50 percent owned by each Botala and AAAS, with equity contributions based on contributions to project development costs and land access rights.
The Leupane Energy Hub, located near Palapye, is poised to become a cornerstone for renewable and gas fired power generation in the region.
Botala has completed initial plans to develop up to 700MW of hybrid gas and solar power generation capacity on the site.
The company said grid connection studies worked in conjunction with Botswana Power Corporation (BPC) confirm the site has sufficient capacity for up to 700MW.
Botala said it will review the bankable feasibility study outcomes by end of CY2024 to decide on whether to proceed with the joint development agreement.
Kris Martinick, CEO of Botala said: “We are excited to now be able to attract significant partners into our projects to take them from the conceptual phase and further develop them into potential operating assets.”
“The strategic partnership with AAAS provides an attractive way to advance a significant opportunity at Botala’s Leupane Energy Hub and Industrial Park without incurring initial project development costs.”
