- Shumba Energy developing energy projects to service Southern Africa.
- Flagship project, Tati Solar PV, progressing towards financial closure.
- State-of-the-art technology deployment to have a positive impact.
Sandton- Botswana-based energy development company, Shumba Energy Ltd, has released its quarterly market update for the period ending 30 June 2023. The company, which is listed on the Botswana Stock Exchange, is developing a portfolio of projects aimed at servicing energy-poor Southern Africa. The projects include the production and trading of thermal coal, near-term generation of renewable energy, and medium to long-term production of liquid fuels using state-of-the-art technologies.
Shumba Energy's flagship project, the Tati Solar PV Project, is a 100 MWp solar PV project located near the city of Francistown, Botswana. The project is progressing towards the crucial stage of financial closure, and the company remains cautiously optimistic about achieving this milestone by the end of the second quarter of Fiscal Year 2024 (December 2023). The project is expected to become operational by the third quarter of Fiscal Year 2025 (January 2025), at which point the company anticipates unlocking significant value.
Shumba Energy also holds a 100% stake in the Sechaba Natural Resources Proprietary Limited, which owns the Sechaba coal mining project in the Morupule coalfield in Botswana. The company is actively involved in discussions with potential investment and operating partners to complete the necessary development in preparation for application for a mining license to commence with project execution and mining based on already completed studies and approved ESIA. The targeted optimal solution is to develop a 2 x 150 MWp 'HELE' circulating fluidized bed coal-fired power plant known as the Sechaba Independent Power Producer Project.
The Morupule South Resources Project, which lies within the hub of the extensive power transmission grid in Botswana, holds exploration licenses with a prospecting license valid until 30 September 2024. Shumba Energy is working actively with an interested party to complete the necessary development of the license in preparation for a bulk sample extraction of 500kt of saleable thermal coal under the prospecting permit as a precursor for the application of the full mining license. Discussions are continuing with several parties with serious interest in developing the project for further base-load power generation to be added for cross-border supply to ease the SADC regional and growing net power deficit.
The Mabesekwa project area contains two elements, the Mabesekwa No.1 Mine and Independent Power plant to be developed within subsidiary Kibo Energy Botswana Pty Ltd (65% owned) and the Mabesekwa No.2 Mine and associated Coal to Liquids Plant to be developed under the subsidiary Coal Petroleum Ltd (80% owned). The Mabesekwa Export Independent Power Project is planned to be a 600 MWp mine-mouth power plant configured as a 4x150 MW 'HELE' coal-fired power plant with a minimum 25-year operating life with the ability to expand development to 1200 MWp. The Mabesekwa No.2 Mine is planned to be developed to feed the Coal to Liquids (CTL) Plant facility to produce up to 30,000 bpd clean-burning liquid fuels and associated petrochemical by-products.
With these various energy projects in the advanced stage of development, Shumba Energy is poised to have a significant impact on the energy sector in Southern Africa. As the region grapples with a growing power deficit, the company is working towards supplying energy to affected countries in a sustainable and cost-effective manner. The company's use of state-of-the-art technology deployment and low-impact emissions is expected to have a positive impact on the coal market and the energy industry as a whole in the coming years.
-Equity Axis News