Astra Energy Inc. announced that the Company's subsidiary Astra Energy Tanzania Limited has executed a memorandum of understanding with the Tanzania Electric Supply Company to develop a 350-megawatt 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 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.