Hope for Karpowership deal after Environment Department grants environmental authorisation

SA contemplates of extracting power supplies from Karpowership. | Archives.

SA contemplates of extracting power supplies from Karpowership. | Archives.

Published Nov 6, 2023

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Durban — Karpowership SA has welcomed the Department of Forestry, Fisheries and Environment’s (DFFE) decision to grant environmental authorisation for its Richards Bay Environmental Impact Assessment (EIA) application.

The DFFE under Minister Barbara Creecy recently granted Karpowership SA the authorisation, which the energy company hailed as representing a critical milestone in its participation in the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

In a statement, the company said the decision not only vindicates Karpowership SA’s thorough EIA methodology and process that included comprehensive and inclusive public participation processes in Richards Bay, but also demonstrates the department’s willingness to objectively evaluate the information at hand. The company said the decision is further justification that its powerships exceeded both international and South African environmental standards.

“The outcome represents a meaningful turning point in this extensive process as all parties involved including our stakeholders and various other interested and affected parties (IAPs) have worked cohesively and supported Karpowership SA to showcase that our LNG-to- Power projects will make an important contribution to combating South Africa’s energy crisis through a stable, cleaner, and reliable electricity supply to the businesses and communities they urgently need it. Karpowership SA is proud to be able to play a significant role with its state-of-the-art LNG-to- Power technology in Richards Bay, assisting South Africa in achieving its net-zero targets,” read statement.

Apart from helping with cleaner and reliable energy, the company said it was committed to creating local job opportunities and socio-economic Initiatives, adding that for the Richards Bay project alone approximately R6 billion will be dedicated to economic development for the life of the project.

“Our next focus is on meeting financial close, which will require us to finalise our agreements with Transnet National Ports Authority (TNPA). Karpowership SA remains committed to South Africa and the process set out and led by the Department of Minerals Resources and Energy (DMRE) and the Independent Power Producers (IPP) office,” the company said.

Karpowership which will supply the energy from a ship stationed in the sea, is one of the Independent Power Producers that has been mooted to mitigate the challenges of energy security in the country.

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