Botala Energy Ltd. (ASX:BTE) and AAAS Energy BV, a Sub-Saharan Africa-focused solar developer, have inked an agreement to evaluate the feasibility of installing up to 250 MW of solar capacity at an energy hub currently in progress in Botswana.
The proposed project is slated for Botala’s Leupane Energy Hub and Industrial Park near Palapye. The site has the potential to accommodate an impressive 500 MW of solar energy and 200 MW of gas-fired power generation.
The partners are set to expedite the finalization of a bankable feasibility study (BFS) by the close of 2024. This study will determine project costs, ownership structures, and funding mechanisms essential for a final investment decision (FID).
The BFS will also explore potential off-takers in the Southern African region and assess the feasibility of developing the project as a merchant power station. The study’s outcomes will guide future solar capacity development initiatives under similar terms.
Botala envisions the Leupane Energy Hub as a pivotal hub for renewable and gas-fired power generation in the region. AAAS Energy will acquire a 50% stake in the project for AUD 1 million (USD 650,000/EUR 609,000).
With its focus on Botswana, the Australia-based firm has already completed grid connection studies for the project and concluded the public review phase of its environmental impact assessment (EIA).
The comprehensive EIA covers various components, including a hybrid power station, a solar panel factory, LNG and/or CNG plants, offices, and mixed-use agriculture.
