SAN DIEGO, June 22, 2023 (GLOBE NEWSWIRE) -- via InvestorWire -- Astra Energy Inc. (OTCQB: ASRE) (“Astra” or the “Company”) is pleased to announce that the Company's subsidiary Astra Energy Tanzania Limited has executed a memorandum of understanding (“MOU”) with the Tanzania Electric Supply Company (“TANESCO”) to develop a 350-megawatt (“MW”) combined cycle power plant in mainland Tanzania.
Astra and TANESCO, the government-owned electric utility of the United Republic of Tanzania, have been working towards this since March 8, 2022. The Company first announced its engagement with the government of Tanzania at a meeting at the U.S. Chamber of Commerce in Washington, D.C. The objective was to reach an agreement to construct a large-scale, combined cycle power plant using natural gas as the primary fuel source.
As with the 50 MW Clean and Renewable Energy Park Project at Kibele Landfill in Zanzibar announced earlier this week, Astra intends to own and operate the 350 MW project as an independent power producer, selling the power to TANESCO. The combined projects have the potential to generate significant recurring revenues for the Company for many years, with a potential projected gross revenue stream of an estimated $180 to $200 million annually over a minimum of 25 years.
“The Tanzanian government is actively working to modernize their critical infrastructure and has plans to increase installed generation capacity to support more industry in the country,” states Tony Thompson, VP of Electrical Power Generation for Astra Energy Tanzania Limited. “Their plan to allow more penetration by independent power producers like Astra into the Tanzanian power market is an indication of their forward-thinking approach that supports the Tanzania Development Vision 2025. The MOU authorizes Astra to advance to complete a full bankable feasibility study and then enter into negotiations for a long-term power purchase agreement.”
The additional 350 MW will help Tanzania harness their vast natural gas reserves to provide much-needed generation capacity to strengthen the baseload for the Tanzanian electricity grid. Doing so will improve reliability of electricity delivery that is critical to a growing economy. Additionally, it will support Tanzania’s goal to increase rural connection levels to at least 75% by 2033. Recent data shows that the average per-capita electricity consumption in Tanzania is 108 KWH per year, just a fraction of the 2,500 KWH worldwide average. A large factor in this statistic is that currently less than 40% of Tanzanian households are connected to electricity. Success of the project will create both direct and indirect jobs for the Tanzanian people and other sectors of the economy that primarily rely on electric power, especially women and youth owned small and medium-sized enterprises.
About Astra Energy Inc.
Astra Energy Inc. is an integrated solutions provider investing in and developing renewable and clean energy projects in markets where demand is high, supply is limited and there is an opportunity to address other imminent market needs.
Astra’s corporate strategy is rooted in securing technologies and assets; identifying viable market opportunities; and bringing together resources, expertise, technology and defined action plans to execute first-in-class projects that benefit communities, local economies, the planet and the Company’s investors.
Its goal is to create a more secure and sustainable power sector that supports the Company’s purpose, mission and values to transform the economic, environmental and social landscape for generations to come.
For more information on Astra Energy Inc., visit the Company’s website at www.astraenergyinc.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements. In evaluating these forward-looking statements, readers should consider various factors, including the Company’s ability to change its direction, its ability to keep pace with new technology and changing market needs, and the competitive environment of its business. These and other factors may cause the Company’s actual results to differ materially from any forward-looking statement.