Turkish company Karpowership, which manufactures floating power stations, has received environmental authorization from South Africa's Department of Forestry, Fisheries, and the Environment for its 320 MW Saldanha Bay project, in an effort to shore up the failing local electrical grid.

The Saldanha Bay project is one of three gas-fired plants under development by Karpowership SA. The other two are 450 MW plants located in Richards Bay, KwaZulu-Natal, and Coega, Eastern Cape. These floating gas-to-power projects aim to leverage imported liquefied natural gas as the primary fuel source.

Despite achieving preferred bidder status in the Risk Mitigation Independent Power Producer Procurement Programme in 2021, all three projects, including Saldanha Bay, faced delays and encountered obstacles, including a legal challenge that was subsequently dismissed. The environmental authorization process for these projects also saw setbacks, with Karpowership SA having its authorization denied initially. However, the company was given an opportunity to resubmit its environmental impact assessments, leading to the recent approval for the Saldanha Bay project.

While environmental authorizations for the Richards Bay and Coega projects were initially granted, an appeal challenging the decision for Richards Bay has been lodged by civil society groups, including groundWork and the South Durban Community Environmental Alliance. Represented by the Centre for Environmental Rights, these groups contest the adequacy of climate impact assessments and question the public consultation process for the projects.

As Karpowership SA works toward achieving financial close for its projects by the year-end deadline, the appeals process temporarily suspends the Provisional Atmospheric Emission Licence issued for the Richards Bay project. The outcome of these appeals will significantly impact the progress of Karpowership SA's gas-fired plants.

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