By: Energy capital & power

Australia’s Botala Energy has received approval from the Botswana government to advance its Serowe Coal Bed Methane (CBM) Gas Project to commercial production. The mining license gives the company the rights to develop and produce coal bed methane natural gas for 10 years, with the option to extend the license for an additional 25 years.

“This is a major de-risking milestone for the Serowe CBM Project. It removes the final regulatory hurdle and provides us with the green light to transition from exploration to development, bringing us closer to first revenue,” stated Kris Martinick, CEO, Botala Energy.

The company is now finalizing a bankable feasibility study and expanding fieldwork, with environmental and planning approvals for the project in place. The fieldwork includes drilling additional wells and upgrading infrastructure to support the project’s long-term development.

Martinick said the project milestone coincides with growing demand for natural gas in Botswana and Southern Africa, emphasizing on the initiative’s potential to drive regional energy security.

The Botswana government has an option to acquire a 15% stake in the project by providing A$2.2 million in working capital to Botala Energy.

Natural gas from the Serowe CBM Gas Project will be transported to Botala Energy’s Leupane Energy Hub and Industrial Park near Palapye via a pipeline before distribution to both local and regional markets.