Australia's Botala Energy has signed a binding heads of agreement with Amsterdam-based AAAS Energy to develop up to 250MW of photovoltaic (PV) solar capacity at its proposed Leupane Energy Hub and Industrial Park near Palapye in Botswana. AAAS will buy into 50% of the project special purpose vehicle for Australian $1 million (US$645,000), assuming responsibility for all initial development capital to advance the scheme to the bankable feasibility study.

The outcomes of the feasibility study are expected by the end of 2024 and will determine the project cost, ownership and funding structures for a final investment decision (FID) and joint development agreement.

Additional contributions after the Australian $1 million has been spent (expected from the first quarter of 2025) will be equally shared. The feasibility study will also consider potential offtakers in the Southern African region, analysing the opportunity for developing the plant as a merchant power station and trading electricity via the Southern African Power Pool (SAPP).

Botala is planning to develop up to 700MW of hybrid gas and solar power generation capacity at the Leupane Energy Hub and Industrial Park near Palapye.

The environmental impact assessment (EIA) for the park is with the government for a final review before approval. The EIA covers the development of up to 700MW of generation capacity to be developed in stages and comprising 500MW of solar and 200MW of gas-fired power.

It also covers the development of a PV panel manufacturing plant to be built in partnership with Solar Finland; liquefied natural gas (LNG) and/or compressed natural gas (CNG) plants; service infrastructure such as roads, power distribution, water supply and sewage; offices and workshops for administration, storage and maintenance; and mixed-use agriculture of crops and animal husbandry.

Kris Martinick, CEO of Botala said: “The strategic partnership with AAAS provides an attractive way to advance a significant opportunity at the Leupane Energy Hub and Industrial Park without incurring initial project development costs. We look forward to working closely with AAAS and leveraging their extensive experience in solar project development.”

After achieving financial close on the initial 250MW of solar capacity, Botala and AAAS will negotiate regarding the development of further capacity, up to the park's proposed total of 500MW.Botala aims to complete due diligence on AAAS and secure necessary environmental approvals by 31 May.

Botala is a coal bed methane (CBM) exploration and development company. In January, it received environmental approval to proceed with the commercial development of its Serowe CBM project in Botswana, which includes the construction of a 100km pipeline from the wellfield to the Leupane Energy Hub and Industrial Park.

An EIA is in the final stages of assessment for a 20MW gas/solar hybrid pilot plant to be built as part of the Serowe CBM project. Studies to connect the plant to the local electricity grid have been completed and an application for a 20MW power purchase agreement has been submitted. AAAS focuses on developing PV solar farms in Sub-Saharan Africa and is involved in the 100MW Tati solar project being built across 295 hectares in Francistown, eastern Botswana, by coal miner Shumba Energy.