Renergen slams South African solar project 

Renergen has slammed Springbok Solar for allegedly building a solar project on land that the gas producer has a legal right to. 

In a SENS announcement released this morning, Renergen expressed concerns regarding the ongoing construction of the Springbok Solar project in an area designated for future natural gas extraction.

Renergen explained that it is the holder of a valid onshore petroleum Production Right granted in 2012 under the Mineral and Petroleum Resources Development Act (MPRDA).

According to the company, it is incumbent on new developments to obtain permission from the Petroleum Production Right holder under Section 53 ministerial consent of the MPRDA and to execute a co-existence agreement.

“In an egregious attempt to force the company into granting them such permission, the company noted an unrelated appeal by Springbok Solar challenging aspects of the Production Right, which has no bearing on the case at hand,” Renergen said. 

“We believe the challenge by Springbok Solar lacks substance to make changes to the company’s Production Right and will likely take years before it reaches a court for a decision.”

“The company has attempted to engage in open and constructive dialogue with Springbok Solar to ensure we retain access to our gas-bearing structures in order for us to continue with our core business activities of exploration and production of natural gas.”

Renergen said it is essential for driving the decarbonisation of South Africa’s manufacturing and heavy logistics sectors through the adoption of cleaner-burning natural gas.

However, it said this was met with obstructive behaviour and a non-willingness to grant the company a buffer zone around the gas-bearing structures so that the company could continue with its core business.

It explained that the land access required to build Springbok’s solar project needs the company’s consent under the law in the interest of all stakeholders to work together

According to Renergen, multiple solar facilities and battery energy storage system facilities are being planned within the company’s Production Right area.

“We welcome solar developments as a key to transitioning and bolstering South Africa’s energy landscape,” Renergen CEO Stefano Marani said.

“Unbeknown to most, helium is essential in fabricating solar panels and wind turbines which increases demand for our product, making our co-existence mutually beneficial.” 

“We are meaningfully engaged with many other solar developers in the area, requiring no compensation on the basis that they design their installations around our gas-bearing structures and have good relationships with all of them.”

However, he said that construction commenced on the Springbok Solar project without Renergen’s prior consent or a co-existence agreement.

Therefore, he said Springbok Solar did not take Renergen or the law’s requirements into account.

“The company remains committed to the principles established under the MPRDA and will continue to pursue meaningful engagement for an amicable co-existence agreement,” Renergen said.

It added that this agreement must, above all, protect the company’s legal right to access gas-bearing structures across the extent of its Production Right.

“The company is determined to resolve this matter with Springbok Solar in the interest of all stakeholders whilst protecting our rights under the rule of law.”