Approval Granted to Karpowership SA for Floating Gas Project in Richards Bay

In a significant development, Karpowership SA, the South African subsidiary of Turkish-owned Karpowership, has received environmental authorisation from the Department of Forestry, Fisheries and the Environment. This authorisation allows the company to advance their plans to anchor floating gas power ships in the port of Richards Bay, ending a three-year-long struggle for approval.

The company stated that this outcome symbolises a substantial turning point in this prolonged facilitation process. Karpowership SA was granted three bids for a total contracted capacity of 1,220MW, to be provided over the course of 20 years through power ships stationed in Coega, Richards Bay, and Saldanha. These bids were awarded under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) in March 2021.

However, the contracts awarded to Karpowership under the RMIPPPP generated significant controversy due to concerns about their environmental impact, as well as the cost and duration of the projects. Legal challenges surfaced, causing further delay.

With this authorisation, Karpowership SA moves a step closer to securing financial closure for the Richards Bay project. However, approval remains pending for the Saldanha and Coega projects.

Public Enterprises Minister Pravin Gordhan recently clarified that all projects under the RMIPPPP must reach a legal close by the end of this year or face losing grid access secured as part of the procurement process.