Australia’s Botala Energy has announced a binding Heads of Agreement with Amsterdam based AAAS Energy to jointly develop a Solar Farm up to 250MW In Botswana.
The proposed project will be situated at Botala’s Leupane Energy Hub and Industrial Park near Palapye.
The Leupane Energy Hub 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.
Grid connection studies worked in conjunction with Botswana Power Corporation (BPC) confirm the site has sufficient capacity for up to 700MW. This initiative aligns with both Botala’s and AAAS’s vision of delivering sustainable and affordable energy.
No funding commitment
Botala has no funding commitment to this project until A$1 million has been spent by AAAS with additional contributions to be made equally.
AAAS brings a wealth of knowledge on solar project development to the Leupane Energy Hub; they will be establishing a local Botswana office to support this project and leveraging the lessons learned from their successful solar development at the Tati Project in Francistown, Botswana.
The project special purpose vehicle (SPV) will initially be equally owned. Botala’s shareholding will be compensated through its land access provision and historical costs, while AAAS’s shareholding will be earned through its project development funding. Should AAAS not fulfill its funding commitment, its shareholding will proportionally revert to Botala.
Kris Martinick, Botala CEO
In summary
- Joint Solar Project Development: The agreement focuses on developing up to 250MW of Solar PV capacity at Botala’s Leupane Energy Hub and Industrial Park.
- Strategic Partnership with AAAS:Attractive way for Botala to potentially unlock significant value from the Project without incurring initial development costs and leveraging the solar expertise of AAAS.
- Initial Project Bankability Assessment:Both parties will finalise a Bankable Feasibility Study (BFS) by the end of 2024, the BFS 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.
- Equity Participation:Initially, the Project SPV will be 50% owned by each Botala and AAAS, with equity contributions based on contributions to project development costs and land access rights.
- Future Contributions and Dilution:Post AAAS’s A$1 million farm-in anticipated by end of Q1/2025, any additional costs will be shared equally, with dilution applicable for non-contributing parties.
- Subsequent Development:Based on the outcome of the BFS and FID, both parties commit to negotiate further solar capacity development under similar terms.
About the Project:
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