Legal tensions have escalated between SOLA Group and JSE-listed helium producer Renergen, as each party claims rights to land currently under development for the 150-megawatt Springbok Solar Power Plant.
Renergen, with its Virginia Gas Project that comprises production rights of 187 000 ha of gas fields across Welkom, Virginia and Theunissen, in the Free State, yesterday raised concerns over what it claims is the unauthorised solar facility construction by Springbok Solar in an area designated for future natural gas extraction.
SOLA, developer of the Springbok project in Virginia, Free State Province, yesterday counter claimed that the company has followed all legal procedures and obtained necessary permits for the solar plant’s construction.
Renergen, which holds a valid onshore petroleum Production Right under the Mineral and Petroleum Resources Development Act (MPRDA) since 2012, said Springbok Solar began building its project without obtaining required permissions under Section 53 of the MPRDA.
“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. 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,” it said.
According to Renergen, the law mandates that new developments within a petroleum Production Right area secure the production right holder’s consent and establish a co-existence agreement to ensure operational harmony.
CEO Stefano Marani said Renergen supported renewable energy, but while the helium producer has established successful partnerships with other solar developers in the region, Springbok Solar’s construction has proceeded without regard for Renergen’s rights or legal stipulations.
Marani said, “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 in the case of Springbok Solar project, construction commenced without Renergen’s prior consent or a co-existence agreement.
Renergen said it will continue pursuing a legal resolution to protect its access rights under the MPRDA, while upholding the interests of all stakeholders.
SOLA, however, contends that it consulted with Renergen extensively before construction. “Springbok Solar Power Plant (Springbok) has obtained all necessary lawful authorisations. Since April 2022, we provided Renergen with the plant’s location and consulted with them over ten times, including in-person meetings, to address any potential objections related to the facility’s layout,” SOLA said.
According to SOLA, the land designated for the solar project does not overlap with any gas or mineral production activities outlined in Renergen’s publicly available prospecting or production plans.
SOLA claims Renergen raised objections only after several months of construction had passed, subsequently issuing letters demanding layout changes, compensation, and a halt to construction. SOLA further alleges that Renergen’s claim to helium rights may be unlawful, and as a result, it has filed an appeal against an amendment to Renergen’s Production Right, which SOLA claims was obtained through a material misrepresentation.
SOLA said Springbok Solar intends to continue with due legal processes as the dispute unfolds, but was open to constructive engagement.
Despite the legal dispute, Renergen’s share price was 1.48% higher at R9.60 at 5.05 pm yesterday.
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