Clean energy sources are becoming the top priority for companies, no matter the industry. For diversified energy company Botala Energy (ASX: BTE), this is an opportunity to partner with Finnish company Solar Finland to jointly investigate solar power generation projects and establish solar panel manufacturing in Botswana, South Africa. To achieve this, both companies have signed a Memorandum of Understanding (MoU).
Botala will be developing its coal bed methane (CBM) resource in Botswana in an attempt to combine the potential of gas and renewable energy. Botala will support Solar Finland’s business case to establish a SaloTM technology-enabled panel manufacturing plant in Botswana on Botala’s proposed Leupane Industrial Park.
Coal bed methane is a natural gas extracted from coal beds, where coal beds become both the source rock and reservoir. Botswana has been very active in the space of renewable energy in that its sustainable development goals involve becoming 50% reliant on renewable energy by 2036.
Kris Martinick, the CEO of Botala, commented, “Solar Finland is an impressive company with a long history of technical excellence and commercial success.”
“This binding MoU is a significant step forward in our objective to develop our Serowe CBM Project and produce clean energy, while ongoing exploration and appraisal of our CBM field provides continuous growth opportunities.”
The MoU rests on a few terms, including the cooperation to explore, finalise and execute mutual business opportunities in terms of solar and gas electricity generation. This would entail the distribution of Solar Finland’s patented SaloTM Solar Panels to markets in Botswana and neighbouring Southern African Development Communities (SADC) countries.
Secondly, it would comprise potentially setting up independent power producers (IPP) in the same regions and a joint venture (JV) for the manufacture of SaloTM Solar Panels with SaloTM Automated PV Module Production Line in Botala’s proposed Leupane Industrial Park.
The project will unravel in three phrases. To start with, Botala and Solar Finland will be tasked with presenting their case to key stakeholders in Botswana in September/October 2022. Next, if the project receives a go ahead from the Government of Botswana, then Botala and Solar Finland will finalise their business plans, funding, agreements and documentations needed to establish Solar IPP(s) and the JV to manufacture SaloTM Solar Panels with Financial Partners and local JV Partner(s) within 6 months of the mutual approval to move from Stage 1 to Stage 2.
Finally, the companies will start setting up the Solar IPP(s) and solar panels with local partners.
The companies also plan on exploring other avenues of energy, including hydrogen production, battery technology and other technologies. They will launch a small-scale pilot programme on Botala’s proposed Serowe Energy Hub site.
At the end of its announcement, the Company acknowledges that the execution of this plan could be hindered by changing economic conditions or Government restrictions in Botswana.
Alinda is a Business Reporter for The Sentiment
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