Renergen Limited and Springbok Solar Power Plant (RF) Proprietary Limited are pleased to announce that they have reached comprehensive settlement and coexistence agreements.
This ends legal disputes and paving the way for mutually beneficial operations in the Free State.
Following a period of protracted legal proceedings and regulatory review, the parties have agreed to settlement terms.
This settlement terms ensure the protection of Renergen’s subsidiary, Tetra4 Proprietary Limited’s rights to natural gas extraction, as well as the continued operation of the Springbok Solar Project, in accordance with South African law and the Mineral and Petroleum Resources Development Act (MPRDA).
This follows the recent setting aside of the Section 53 approval relied upon by Springbok Solar for land use by the Director-General due to procedural defects.
Key outcomes of agreement
The parties have formalised both a settlement and coexistence agreement.
This allows both the Virginia Gas Project and the Springbok Solar Project to operate within the designated area, with clear protocols for ongoing communication and operational coordination.
Tetra4 will retain the exclusive rights conferred to it within the Production Right outside of the agreed boundary of the Springbok Solar Project facility to explore and produce area.
The parties will continue to engage and consult in terms of all applicable legislation and regulation on future development and expansion of both companies’ continued development in the Free State.
Springbok Solar has indicated that it regrets the circumstances that gave rise to the dispute and acknowledges the concerns raised by Tetra4 regarding their existing rights and more specifically the requirement to consult under Section 53 of the MPRDA.
Commitment to collaboration, South Africa’s energy transition
Both Renergen and Springbok Solar affirm their commitment to supporting South Africa’s transition to a sustainable energy future.
The coexistence agreement demonstrates that renewable energy and natural gas projects can coexist in harmony, provided that all regulatory processes, and more specifically the Section 53 processes as contemplated in the MPRDA, are followed and stakeholders engage in good faith.
“This agreement closes a difficult chapter for both parties, and clears a path forward built on collaboration and mutual respect.
“We look forward to working alongside Springbok Solar and any other parties wishing to co-exist on our production right to deliver energy security and economic growth for South Africa,” said Stefano Marani, CEO of Renergen.
On behalf of Springbok Solar, Katherine Persson commented that they are pleased to have concluded constructive engagement and to have agreed on a resolution.
“With growing overlap between renewable energy and mineral and petroleum rights we believe that improved and ongoing consultation between all stakeholders (including rights holders, other developments and the regulatory authorities) is critical.
“This is including inter-departmental coordination in supporting strategic infrastructure developments.”
Both companies will continue to engage with the Department of Mineral and Petroleum Resources to ensure full compliance with all applicable laws and to report on the progress of their respective projects.
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