Natural gas and helium producer Renergen has raised concern about the “unauthorised” construction of the Springbok Solar project within its production right area.
The company holds a valid onshore petroleum production right granted in 2012 under the Mineral and Petroleum Resources Development Act, which stipulates that new developments must obtain permission from the petroleum production right holder.
The company said the Springbok Solar project’s construction commenced without securing necessary approvals, contravening section 53 ministerial consent of the act.
Despite attempts at open dialogue, Renergen said it had encountered “obstructive behaviour” from Springbok Solar, refusing to grant a buffer zone around gas-bearing structures essential for Renergen’s core business activities.
“This obstruction hinders Renergen’s ability to explore and produce natural gas, crucial for driving SA’s decarbonisation efforts,” the company said.
Renergen’s primary concerns include the unauthorised construction, lack of a coexistence agreement ensuring access to gas-bearing structures, and Springbok Solar’s unwillingness to accommodate Renergen’s requirements. The company emphasised the importance of co-operation, citing mutual benefits in helium production for solar panel fabrication.
In response, Sola Group, developer of the Springbok Solar Power Plant project in Virginia in the Free State, said it had obtained all necessary lawful authorisations to begin construction.
The company said Renergen was consulted multiple times (more than 10 occasions) from April 2022, including in-person meetings, and did not express objections until several months into construction. Sola also alleged that Renergen’s claim to Helium rights was unlawful, and it had commenced an appeal of the amendment to the production right.
According to Sola, the area designated for the solar facility is not highlighted for gas or mineral production activities in any of Renergen’s existing publicly available prospecting or production plans or permit applications.
Despite significant efforts to engage Renergen, the company said it would continue to follow due legal processes.
CEO Stefano Marani said Renergen engages constructively with other solar developers, prioritising co-operation without requiring compensation, ensuring designs accommodate gas-bearing structures.
“We welcome solar developments as a key component of transitioning and bolstering SA’s energy landscape. Notably, helium is essential in fabricating solar panels and wind turbines, increasing demand for our product and making coexistence mutually beneficial,” Marani said.
Renergen said it was seeking an amicable coexistence agreement that would protect its legal rights to access gas-bearing structures.
“The company remains committed to the [act’s] principles and will pursue dialogue while safeguarding its rights,” the company said.
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