FAQs

The main issues for local communities include:

• Job creation and employment, especially preferential recruitment from nearby villages and use of local contractors;
• Social interaction between employees from elsewhere and villagers;
• Gender equality;
• Training and skills transfer; and,
• Assistance to local villages.

These issues have been formally addressed in the Environmental Impact Assessment (EIA) process, but are also regularly addressed in engagements between Botala leadership and the local communities.

Botala currently employs about 70 Batswana casuals, scientists, technicians, and contractors.  The employment numbers and skills-mix vary greatly with stage of development.  Botala’s focus is on local employment and, where specific skills are not available locally, to develop these as work progresses.

Coal Bed Methane (CBM) is a form of natural gas (methane – CH₄) that is found trapped within some coal seams. It is also known as Coal Seam Gas in some regions. This gas is held within the coal due to adsorption, meaning the methane molecules stick to the surface of the coal under pressure.

From Botala’s exploration activities to date, the coals of interest to Botala occur at about 360m to 500m depth, typically about 200m below the Ntane Sandstone Formation which contains the Ntane aquifer which is known for its good quality water on which many lease owners rely. Botala protects this water aquifer from the well with two separate sets of steel pipes (known as casings) and two cement layers between each of the casings, the cement is pressure tested to ensure a tight seal before work commences.

Coal Bed Methane (CBM) is found in coal seams, together with formation water which is often brackish (very salty). This coal formation water is not connected to the Ntane aquifer from which it is separated by ~200m of impermeable rocks.

When drilling to the coal, the drill intersects and drills through the Ntane aquifer at ~150 to 250m depth. The drilled hole is cased-off to protect the water of the Ntane aquifer prior to continuing to drill through solid rock to the deeper coal seams.  To case-off or seal the Ntane aquifer, a steel pipe, slightly smaller in diameter than the drilled hole, is placed in the drilled hole and the gap between the outside of this pipe and the rock walls of the drilled hole is filled with cement.  The cement is pressure tested to confirm that cementing successfully sealed the Ntane aquifer.  This ensures that the steel pipe is firmly cemented in the drill hole and that no water can escape from the Ntane aquifer into the drill hole, and no water above or deeper in the drill hole can mix with water of the Ntane aquifer.  Cementing the deeper section of the drill hole is repeated when the coal seam is reached.  This prevents possible mixing of waters from the coal formation and the Ntane aquifer or any other water that may have been encountered during drilling.

Cementing and pressure testing ensures that no CBM can escape from the coal seam other than through the installed pipe which is fitted with a valve at the surface that prevents CBM escaping to the atmosphere.

Adherence to these procedures is designed to ensure that CBM exploration and production will not affect the levels and quality of water of the Ntane aquifer or in any other formation.

Natural gas from coal (CBM) consists mainly of methane which is also known as sweet gas as it has no hydrogen sulphides. Natural gas associated with oil deposits is methane with traces of other gases (ethane, propane, butane, pentane and hexane) which give it a slightly higher energy content, but can also contain chemicals and gases which need to be removed.

Natural gas associated with oil is typically under great pressure and often flows to the surface when pressure is released by drilling into the gas formation.  This is like pricking a hole into a blown-up balloon.

CBM is under relatively low pressure and together with coal formation water, is brought to the surface under its own pressure and gentle pumping.

Natural gas from coal and oil sources is often carried in the same pipelines.

Two questions often asked are:

Is water pumped into coal to force out CBM?

Water is not pumped into coal to force out CBM.  On the contrary, to stimulate CBM flow, coal seams are continuously dewatered in the lower brackish water aquifer under controlled pressure.  This causes steady drying, shrinking and development of cracks from the well (drill hole) into the coals to form pathways for the flow of CBM towards the well.

How do we get the CBM to the surface?

CBM molecules are adsorbed to coal surfaces, including on the inside of small, lens-like cracks known as cleats that developed during coal formation.  In most instances these cleats were subsequently filled with calcite (carbon carbonates) which traps the CBM.  Drying and resultant shrinkage and cracking of the coals from the well into the coal creates pathways for the flow of CBM towards the well.  This flow is often enhanced by dissolving the calcite with dilute acid to liberate the CBM in cleats near the well.  Dissolving calcite, coupled with ongoing drying and shrinking, results in an ongoing pressure difference which stimulates CBM from more distant coals to flow with formation water through the cracks and cleats towards the well from where it will be pumped to the surface under controlled pressure.

CBM bubbles freely in coal formation water flowing to ground level in Botala’s exploration wells.  The following general procedures are used by Botala to enhance this flow:

• Increase the diameter, and hence exposed surface area, of the drilled CBM-containing-coal section from 6.5 to 10 inches using a special reaming tool.
• Wash the reamed surface with dilute citric acid to dissolve calcite in cleats in the vicinity of the well and establish a permeability which will be maintained and extended by ongoing dewatering and drying.
• Dewater the CBM containing coals by pumping out formation water under controlled pressure.  This might take several months.
• Ongoing dewatering leads to slow and continuous drying and shrinkage of coal which enhances permeability and maintenance of a pressure difference to provide pathways for the flow of CBM from coal to the well bore, and then to the surface in formation water.

When CBM and formation water flow freely, the CBM-water mix will be collected from various wells in a central facility where CBM is separated from the water. This CBM is envisaged to be processed on-site into Compressed Natural Gas (CNG) or Liquified Natural Gas (LNG) and trucked to markets in the region, Serowe, or, as volumes increase, piped to the proposed Leupane Energy Hub.

The pipelines delivering CBM-water mixes to the central facility are special PVC pipes with likely diameters of ~5cm.  They will be buried at a depth of ~75cm, using conventional pipelaying machinery used to lay and bury irrigation pipelines in a single operation.  Soil disturbance and vegetation clearing will be confined to relatively small areas, and removal of stately or otherwise important vegetation can be avoided or kept to a minimum.  The diameter of the pipeline from the CBM field to Leupane is yet to be determined, and is dependent on CBM volumes, friction, and compression of CBM.  It is likely to be installed by a similar process.

Each well is expected to produce CBM for around 6 to 12 years. When a well stops producing, its pipeline is recovered for re-use.

Since each well will have a relatively modest production rate, relative to gas wells associated with oil fields, a CBM production area will consist of numerous wells.  The total number of wells will be determined by flow rates and demand for CBM; but it could be ~100 to 200 (and possibly many more) vertical production wells, spaced ~300 to 400m apart over a large area.  Each well looks like a water bore and is typically drilled with a water drilling rig.

Botala is optimistic that it may not have to drill and develop expensive horizontal wells.

If handled and maintained correctly, natural gas obtained from coal or oil fields is very safe and widely used for electricity generation; industrial, commercial and domestic applications; and cooking and heating.

Since becoming a substantial gas producer and one of the world’s largest exporters of LNG, gas is widely connected for use in houses in Australia.

In Botswana, where reticulated gas is not available, bottled gas is used widely.

During exploration, trace volumes of CBM are likely to escape when drilling into CBM formations.  Further CBM escape is prevented by a valve installed on the top of the well pipe. When CBM flows to the surface during temporary flow testing, it is burnt in a special flare stack.

Botala aims to keep flaring to a minimum as it wastes a valuable resource.

When developing the CBM collection system and transporting CBM via pipeline or road tankers, CBM (as CNG and LNG) will be in a closed circuit from which it should not be able to escape.  Likewise, no CBM can escape from cemented and pressure tested wells fitted with a valve on the well head to prevent CBM escaping.

The gas industry is a highly regulated, engineered, monitored, and understood industry. Modern operations are highly unlikely to have escaping gas, and rare leakages are quickly identified by sophisticated monitoring, isolated by remote control, and repaired.

The CBM-water mixture will be separated into CBM and water in the central collection facility. This water is likely to be brackish (salty).  During exploration it will be collected for evaporation in ponds lined with polyvinyl to prevent seepage.  During CBM production, when greater volumes of such water are produced, Botala could make this water suitable for human consumption and irrigation by removing its salts.

Botala will try to prevent elephants accessing evaporation ponds by locating one or more beehives next to evaporation ponds as elephants are known to avoid bees as soon as they sense them from some distance.

This method is used effectively in Zambia where elephants from the unfenced South Luangwa National Park are attracted to crops of nearby villagers.  This was found to be easier and more effective than hanging rags soaked in water containing crushed chillies around crop fields and has started a local honey industry.

CNG and especially LNG are widely used in generators and vehicles as an alternative to diesel and petrol.  Engines require minor modifications and a suitable gas tank.

Hydrogen has traditionally been produced from CBM (chemical formula CH4) by processes called steam methane reforming and more recently by pyrolysis.  The latter splits CBM into hydrogen (H2) and solid carbon (C), a process that requires electricity which Botala would produce using its solar panels, to produce “green” hydrogen with minimal to zero carbon dioxide emissions.  The resultant solid carbon, known as Black Carbon, could be converted to graphene and graphite, two valuable new-age products.  Botala is closely following research to produce hydrogen and commercialise graphene and graphite production.

Coal provides reliable and essential base load electricity and will probably continue to do so for many years.  Coal-fired power stations cannot be turned on and off in response to solar variations, but CBM turbines and diesel engines can.  Thus Botala believes that CBM, when combined with solar in hybrids, could become a source of reliable electricity in Botswana and many other countries.

Botala’s proposed hybrids are intended to complement Botswana’s coal-fired electricity generation.

CBM belongs to the Government of Botswana and hence to Batswana.

Botala has the right to enter land covered by its Prospecting Licences to explore and evaluate CBM as outlined in an Environmental Management Plan (EMP) and an Environmental Impact Assessment (EIA) approved by the Department of Environmental Affairs (DEA).  When Botala converts its Prospecting Licenses to Mining Licences, it obtains the right to extract CBM, on behalf of the Government of Botswana which receives a royalty, subject to procedures to be outlined in an EMP and EIA which has been approved by the DEA.

The land on which these Prospecting Licences are located is administered by the Ngwato Land Board on behalf of the Government of Botswana which is the ultimate owner of the land and underlying minerals, including CBM.  In many instances the Ngwato Land Board has granted 50-year leases over this land to ranchers with the option of renewal for a further 50 years.

Botala is committed to work closely with ranchers to ensure that potential land-use conflicts are avoided and that development of CBM is undertaken in a manner that is mutually beneficial.  Botala is evaluating opportunities to cooperate with Sandvelt ranchers and is communicating with several ranchers and the Sandvelt Ranchers Association.  The use of CBM-produced water for irrigation may provide a beneficial opportunity to the regional cattle industry.

Botala’s approach is to avoid conflict and resolve disputes amicably.

Should Botala’s operation adversely impact a landowner’s property, such as evidence of a damaged fence, gate or similar, this will be repaired and if appropriate, compensation will be negotiated and paid by Botala.

In instances of land-use conflict, resolution of the conflict will be discussed with the relevant landowner and the Land Board.  In the event of a dispute, the services of an independent arbitrator may be sought.

Electricity generated from CBM may potentially reduce carbon dioxide emissions by about 50% per unit of electricity relative to coal.  This could increase to a reduction of 75% in hybrids, depending on the ratio of solar to CBM generated electricity, and emit no particulates.

Use of CBM may contribute to reducing carbon dioxide emissions; achievement of Botswana’s carbon dioxide emission goals; and earn carbon credits.

Natural gas has no odour. Gas companies often add a harmless chemical, mercaptan, to gas to give it a distinctive rotten egg smell to detect leaks and open gas bottles.

Botala is aiming to develop the well field and CBM via a buried pipeline along an existing road corridor to a downstream facility. The gas will be converted to Liquefied Natural Gas (LNG). LNG is the process of cooling the gas to below -161C which allows for economic transport of the gas via existing roads and rail.

The intention is to use existing infrastructure as much as possible for the development of the gas project.

At the proposed downstream solar projects Botala and its partners will tie-into existing power lines. These projects would be comprised of solar panels, control rooms, and transformer stations with small power lines from the plant to tie-in locations.

Botswana’s CBM industry mirrors Queensland’s development path, where CBM has become a multi-billion-dollar industry. Over the past two decades, Queensland transitioned from small-scale exploration to a leading LNG hub, attracting over US$35 billion in investment and currently generating more than $40 billion per year in revenue.  Botala Energy’s Serowe CBM Project and others, present Botswana the opportunity to replicate Queensland’s success and become a significant gas exporter.

Queensland’s CBM industry serves as a model for Botswana, as the Serowe CBM Project is at a similar stage to Queensland’s industry 15 years ago. By leveraging Queensland’s investment strategies and infrastructure development, Botswana can become a major gas producer, particularly as South Africa faces a looming gas shortage by mid-2028.

Botswana and Queensland share geological similarities as their CBM-bearing coal seams originated from the same prehistoric landmass before continental drift.

Queensland has become a leader in CBM technology, especially exploration and enhancement of gas flows. Unlike Queensland which required significant up-front investments, especially in LNG export infrastructure, Botswana’s CBM development can be staged to meet the high gas demand of Southern Africa, focusing initially on the heavy industrial and mining region of greater Johannesburg.

Queensland’s CBM sector began around 2000 with small-scale exploration in the Surat and Bowen Basins and has grown into one of the world’s largest CBM-producing regions. Major global energy companies invested over US$35 billion in infrastructure, especially three LNG plants that produce 26.3 million tons of LNG per annum. Today over 12,000 wells have been drilled, with approximately 1,000 new wells added annually to replace wells and increase gas reserves which in 2022 alone increased by 1.1 Tcf (3.7%).

Botala is actively developing several solar energy projects in Botswana, aiming to enhance the country’s renewable energy capacity. These include:​

1. Serowe Energy Hub

In July 2024, Botala Energy, leading the Serowe Solar Consortium, secured a tender from the Botswana Power Corporation to construct a 4MW solar power plant in Serowe. This project includes a 25-year Power Purchase Agreement (PPA) with the state utility and is expected to commence construction in late 2025, with commissioning slated for mid-2026. ​

Complementing the 4MW solar initiative, Botala is exploring a 20MW hybrid plant combining solar energy with CBM gas. This integrated approach aims to provide a stable and sustainable energy supply to the region. ​

2. Leupane Energy Hub and Industrial Park

Botala has entered into a partnership with AAAS Energy to develop a 250MW solar photovoltaic (PV) facility at the Leupane Energy Hub near Palapye. Environmental approvals have been secured, and a Bankable Feasibility Study is expected to be completed by the mid 2025.

Long-term plans for the Leupane Energy Hub include developing an up to 700MW hybrid plant that integrates both gas and solar power generation. This ambitious project aims to feed electricity into both domestic and Southern African Development Community (SADC) networks via the Southern African Power Pool (SAPP), significantly bolstering the region’s energy infrastructure. ​

Through these strategic projects, Botala Energy is contributing to Botswana’s transition towards renewable energy, aiming to provide reliable and sustainable power solutions to meet the country’s growing energy demands

Yes, Botala employs local Batswanan staff for roles varying from operations, drilling to finance and corporate activities. This is a mix of full-time and casual employment based on the field projects underway. The Botala goal is utilise local labour as much as possible and providing on-site training and experience as well as off-site specialist training as required.

Botala has regular engagements with the local communities primarily through Kgotla meetings. We employ community liaison officers to continuously engage with the communities to understand concerns and provide notification of upcoming work. We take community engagement very seriously at Botala as we strongly believe in empowering the local community through the development of resource and power projects.

Botala wants to make a positive contribution to Batswana by attracting Batswana shareholders, management, and partners. Botala is seeking to establish relationships with Batswana companies, partners and investors interested in becoming involved in Botala or in projects Botala might attract to the proposed Leupane Industrial Park and elsewhere.

The ownership and responsibilities of the Serowe Solar Consortium (Botala Solar Farm (Pty) Ltd) as envisaged when the Serowe 4MW project bid was submitted to BPC were as follows:

The Botswana Power Corporation (BPC) entered into a Power Purchase Agreement with Botala Solar Farm (Pty) Ltd, a project company incorporated subsequent to the award of the tender to the Serowe Solar Consortium.

Botala was the lead in the submission of the tender, and the incorporation of Botala Solar Farm (Pty) Ltd with the shareholding stated was envisaged and disclosed to BPC as part of the tender process.

CIPA Extract for Botala Solar Farm (Pty) Ltd shows that Botala Energy Ltd through its wholly owned subsidiary Botala Renewables (Pty) Ltd had an initial ownership interest of 49%. All the entities listed above have an indirect shareholding in Botala Solar Farm (Pty) Ltd, not a direct interest.

Botala Energy Ltd confirms it holds a material indirect ownership in this project.

The project is anticipated to reach financial close by late September 2025. Once financial close is achieved, the shareholding of Botala Solar Farms Pty ltd will include the Serowe Solar Consortium Pty Ltd, AAAS Africa Solar SPV and Botala Energy. Botala Energy will have a minority shareholding of 26%.

With respect to solar energy, Botala Energy:

• Has environmental approval to develop a 14MW solar project on its Serowe Energy Hub.
• Managed the tender to BPC that resulted in the award the 4MW solar project.
• Has environmental approval to develop a 500MW solar project in the Leupane Industrial Park and Energy Hub. Of this 250MW is currently under development in partnership with Netherlands based company AAAS.

The EIA process followed to meet the requirements for environmental approvals is detailed chronologically below:

Development of EIA for Serowe Energy Hub

1. Scoping Phase – Public meeting notice: 14 March 2023
2. Approval of Scoping Phase: 11 December 2023
3. Submission of EIA: 7 February 2024
4. Public review recommendation: 29 April 2024
5. Public review exercise: 31 May 2024 and 7 June 2024.
6. Deadline for submission of comments by public: 14 June 2024
7. Approval: 2 October 2024
8. ASX announcement of environmental authorisation: 7 October 2024

• Development of the EIA for Leupane Energy Hub and Industrial Park

1. Public meeting notice: 14 March 2023
2. Approval of Scoping Phase: 24 October 2023
3. Submission of EIA: 27 February 2024
4. Public review recommendation: 9 April 2024
5. Public review exercise: 19 April 2024 and 26 April 2024.
6. Deadline for submission of comments by public: 7 May 2024
7. EIA authorisation granted: 16 August 2024
8. ASX announcement of authorisation: 20 August 2024

Development of gas flow requires some gas to be released into the atmosphere, as is common in the CBM gas industry. However, this is not material.  Once in production, the gas will be captured and sold, some as LNG. During operational emergencies gas may need to be flared.

Gas analysis by the Centre for Materials Science of the Botswana Institute of Technology Research and Innovation (BITRI-CMS) confirmed the gas is predominantly methane (Botala’s target gas) with some iso-butane and few impurities:

• High methane content; to approximately 94%
• Butane detected; a positive as it increases energy content
• Impurities; low to absent:
  • CO₂ – low
  • H₂S – trace amount
  • SO₂ – not present

Botala Energy considers gas as essential in the transition to renewables and as a “cleaner” alternative to coal. In particular gas power generation typically emits half of the carbon dioxide  of coal fired generation. Gas also releases no particulates or sulphur dioxide emissions. Botala Energy aims to become a supplier of low emitting, affordable and reliable energy and for this reason, is developing its CBM gas field and various solar energy projects.

It is widely recognised that replacing coal with gas in the generation of electricity reduces carbon dioxide emissions, often by as much 50%, dependent on the type of coal use and the efficiency of the power station.  This is supported by the following references:

International Energy Agency (IEA)

• Fuel-switching benefits: The IEA’s The Role of Gas in Today’s Energy Transitions report states that switching from coal to gas has reduced CO₂ emissions by 50–60 % per unit of energy delivered. They also quantify a ~500 Mt CO₂ saving since 2010 due directly to coal-to-gas switching The Department of Energy’s Energy.gov+15IEA+15IEA+15.
• Combustion advantage: In The environmental case for natural gas, the IEA notes gas combustion emits ~40 % less CO₂ than coal and ~20 % less than oil per unit of energy IEA.

IPCC (Intergovernmental Panel on Climate Change)

• Lifecycle emissions in power: IPCC’s AR5 and AR6 energy reports highlight that modern natural gas combined-cycle plants emit significantly less CO₂ compared to average older coal plants—both for combustion and full lifecycle, assuming minimal methane leakage Wikipedia+10IPCC+10CIRAIG+10.

U.S. Energy Information Administration (EIA)

• Per-unit emissions data: The U.S. EIA provides detailed figures showing average CO₂ produced per million BTU:
  • Coal (bituminous): ~206 lb CO₂/MMBtu
  • Natural gas: ~117 lb CO₂/MMBtu — roughly 43 % less https://www.power-eng.com/coal/eia-shift-from-coal-to-gas-fired-power-renewables-cut-800-million-metric-tons-of-co2-per-year/Our World in Data / IPCC
• Lifecycle comparison: A 2011 IPCC review summarized on Our World in Data shows lifecycle GHG emissions:
  • Coal power: ~1,000 gCO₂e/kWh
  • Gas combined-cycle power: ~469 gCO₂e/kWh — about 53 % lower The Department of Energy’s Energy.gov+13Wikipedia+13IPCC+13MIT Climate Portal+1SpringerLink+1.

Science – Peer-reviewed Study

• India case study: A lifecycle assessment in India found combined-cycle natural gas plants emit ~584 g CO₂e/kWh, compared to ~1,127 g CO₂e/kWh from coal-fired plants — nearly half.

Agrawal, K.K., Jain, S., Jain, A.K. et al. Assessment of greenhouse gas emissions from coal and natural gas thermal power plants using life cycle approach. Int. J. Environ. Sci. Technol. 11, 1157–1164 (2014). https://doi.org/10.1007/s13762-013-0420-z

SUMMARY TABLE

No Botala will not need to incorporate horizontal drilling owing to the geology of gas rich coal seams in its area of activity. In particular Botala’s wells will be intersecting three coal seams, all of which are gas producing. The Serowe Seam with an average thickness of 9 metres is considered the primary target as it consists of “bright coals” much like the coal seams found in Queensland, Australia  This has been widely reported in Botala’s communications to date. This obviates the need for expensive horizontal drilling and will enable Botala to produce affordable gas for Botswana and the region.