The trial used excess field camp electricity to run crypto mining units to produce Bitcoin. Officials said this had established proof of concept and built in-house technical expertise.
Commenting on the company’s operations for the quarter ended 30th June, executive director, Gabaake Gabaake said the next stage would involve powering the crypto miners using electricity generated from the Lesedi 4 production well. Thereafter, Tlou plans to look at the expansion of the project “all else being equal”.
"Tlou is looking at monetising currently flared gas through the mining of cryptocurrencies. Cryptomining is currently only planned to be conducted if excess gas or power is available," he said.
Cryptomining is the process by which new cryptocurrencies such as Bitcoin are created and introduced into the global network. The mining involves the installation of powerful and large networks of computers that compete with others globally to solve complex puzzles that create a cryptocurrency. The 'miners' are remunerated in cryptocurrencies, but the process consumes vast amounts of electricity and several countries have introduced limits or bans to protect their power grids.
Gabaake stressed that Tlou’s primary objective remains gas and solar power generation as well as sale within Botswana, followed by hydrogen and solid carbon production.
Meanwhile, Tlou Energy is building a transmission line, with a capacity of up to 25MW, which will enable the company to supply the country’s first CBM electricity into the national grid from the fourth quarter of 2023.
A ramp-up of up to 10MW generation is expected to be completed in 2024.
The developments, which are part of the first phase of Tlou’s Lesedi Project, also include the construction of substations at both ends of the 66kV transmission line, a gas field and a gas processing facility at Nyamakatse Ranch facility. The project includes the installation of a total of 10MW using one-megawatt generation sets at Nyamakatse Ranch.
The transmission line construction is fully funded by the Botswana Public Officers Pension Fund, which holds just under eight percent equity in Tlou and is the energy firm’s single biggest shareholder.
"Progress as at end of June 2022 is six percent against a planned rate of six percent. “Work on the transmission line is scheduled for completion in mid-2023, with the substations at either end of the transmission line expected to be completed in the second half of 2023. Sale of electricity can start thereafter," Gabaake said.
