Linc Energy announced it has entered into a Memorandum of Understanding (MOU) with the National Development Corporation (NDC) of Tanzania and Olympic Exploration Limited for the development of a 400MW UCG to power operation in Tanzania.
The project will provide a much needed and timely delivery of power into the Tanzanian electricity grid to support the growing demands on the Tanzanian Electricity Supply Company Limited (TANESCO) to meet the requirements of the economy.
The MOU specifies a programme of coal exploration and power plant development, which subject to project permitting and commercial term development, would see the commercialisation of a 400MW power plant in the South West of Tanzania in late 2017.
Under the MOU, the NDC has agreed to work with Linc Energy and Olympic Exploration to obtain all necessary permits and approvals for the project, while also assisting with the securing of land access, utilities and the development of a long-term Power Purchase Agreement (PPA).
Olympic Exploration Limited has access to vast coal resources in Tanzania and will be working with Linc Energy on all of the necessary exploration, feasibility studies, finance raising, project engineering, delivery and operation on behalf of a future joint venture between the parties.
The details of the JV agreement will be negotiated over the coming months in accordance with the project delivery timeline outlined in the MOU.
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