Latest news with #StefanoMarani
Zawya
6 days ago
- Business
- Zawya
Renergen Chief Executive Officer (CEO) Joins African Energy Week (AEW) 2025 Ahead of Virginia Phase 2 Project Start
Stefano Marani, CEO of gas producer Renergen, is set to discuss the company's South African projects and investment pipeline at the African Energy Week (AEW): Invest in African Energies 2025 conference. Taking place September 29 to October 3 in Cape Town, the event is the largest of its kind on the continent. As a major helium producer in South Africa, Renergen is well-positioned to lead discussions around opportunities for gas-driven growth in the country. As South Africa's only onshore gas producer, Renergen operates the Virginia Gas Project in the country's Free State province. The project – which restarted phase one operations in 2024 – produces 350 kg of liquid helium per day in tandem with a 2,700 gigajoules of LNG per day. Phase two is expected to begin in 2026, significantly increasing capacity. At AEW: Invest in African Energies 2025, Marani is expected to share insights into the role the project will play in South Africa's helium market. Providing an update on the project, Marani will delve into the impact investments in gas will have across the region. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. In May 2025, Renergen announced that U.S.-based ASP Isotopes made an offer to acquire 100% of Renergen's shares through a share-for-share offer. The acquisition, which is expected to close in Q3, 2025, will combine ASP Isotopes' expertise in isotope enrichment with Renergen's helium production capabilities, creating a company positioned to scale-up production and support South Africa's helium demand. The acquisition creates opportunities for horizontal business expansion, allowing the company to tap into strategic industries such as healthcare, nuclear, semiconductors and rocketry. The transaction also signals a strategic step for ASP Isotopes' expansion and comes as the company plans a second listing on the Johannesburg Stock Exchange later this year. In addition to creating a more integrated supply chain in South Africa, the acquisition provides an opportunity for Renergen to accelerate the development of the Virginia Gas Project. Phase two of the project comprises an expansion of current operations through several initiatives. These include drilling approximately 350-450 new productive wells; the construction of a gas gathering network of pipelines; the development of a 32,000 million British thermal units of LNG and 894 million cubic feet of liquid helium; as well as the deployment of 35 road tankers. As such, the project is expected to play an important part in meeting South Africa's demand for liquid helium while introducing a new source of fuel to the market through LNG. The Virginia Gas Project also produces LNG and Renergen aims to increase output to support domestic market growth. 'Gas is not a transition fuel for countries such as South Africa; it is a destination fuel. The country has significant amounts of natural gas reserves, most of which are underdeveloped. But companies such as Renergen are leading the way towards unlocking these resources and are expected to play an instrumental part in supporting South Africa's economic growth. Projects such as the Virginia Gas Project are vital for the country and more investments across the gas value chain will support sustainable growth in South Africa,' stated Tomás Gerbasio, VP Commercial and Strategic Engagement, African Energy Chamber. Distributed by APO Group on behalf of African Energy Chamber.
IOL News
28-05-2025
- Business
- IOL News
Renergen secures helium rights as SA minister dismisses Springbok Solar's appeal
Renergen Renergen says the minister of the Department of Mineral Resources has dismissed the appeal by Springbok Solar against our helium rights in the Virginia Gas Project. South Africa's Minister of Mineral and Petroleum Resources has dismissed an appeal by Springbok Solar Power Plant against Renergen's helium extraction rights at the Virginia Gas Project, affirming the company's legal authority to extract and commercialise helium as a by-product of natural gas. The decision, announced on Monday, ends a protracted dispute and strengthens Renergen's position as a key player in South Africa's helium and natural gas sector. The ruling follows a thorough review of legal and scientific arguments, resolving a contentious debate over whether helium should be classified as a mineral or a petroleum by-product under South African law. The Minister's decision confirms that helium extraction falls within Tetra4's existing Production Right, a subsidiary of Renergen, aligning with the Mineral and Petroleum Resources Development Ac. The Minister said this interpretation promotes 'resource efficiency and regulatory consistency' in South Africa's petroleum framework. 'This is a landmark decision for Renergen and its shareholders,' said Stefano Marani, the CEO of Renergen. 'The appeal was a tactical move to challenge our position, but with this matter now settled, we can focus on scaling up production and delivering value as South Africa's leading helium and natural gas producer.' The decision also has implications for Springbok Solar, whose appeal was deemed 'vexatious' by Renergen. Additionally, a recent ruling by the Director-General of the Department of Mineral and Petroleum Resources set aside a Section 53 approval critical to the Springbok Solar Project, rendering its development unlawful. Renergen sought urgent relief to halt construction at the solar project but was denied by the Bloemfontein High Court on May 23, 2025, due to procedural urgency requirements. The court instructed Renergen to place the matter on the ordinary roll, with a hearing expected in early June. The ruling secures Renergen's ability to tap into its world-class helium reserves in the Free State, a critical asset given helium's growing demand in industries such as medical imaging, aerospace, and semiconductor manufacturing. Analysts say the decision bolsters investor confidence in Renergen's long-term growth, as the company moves to ramp up production at the Virginia Gas Project. Marani expressed optimism about ongoing negotiations with Springbok Solar, stating, 'We are confident this resolution paves the way for a mutually beneficial outcome.' However, with the solar project's legal standing in question, the dispute may continue to unfold in court next month. Renergen's share price at 9.11am was flat at R11.54 on the JSE. Last Tuesday Renergen's share price rocketed 44.7% following the announcement of a buyout offer for South Africa's only onshore gas production company by Nasdaq-listed ASP Isotopes, to create a merged company focused on globally sought-after critical materials. ASP Isotopes, which only last month indicated it wished to do a secondary listing on the JSE later this year, has made a firm share-for-share offer to acquire 100% of the shares in Renergen, by way of a scheme of arrangement or standby general offer. | BUSINESS REPORT
Daily Maverick
06-05-2025
- Business
- Daily Maverick
Renergen defends its financial position against wild social media claims
Energy company Renergen has responded to Daily Maverick queries and directly denied social media claims suggesting the company lost control of assets due to a default on its Standard Bank loan. 'There has never been property ownership through the Standard Bank financing,' Renergen said via email, describing the claim as misinformation circulating online. 'The SBSA Loan is secured by a third-ranking pledge of Tetra4's assets and shares held by Renergen in Tetra4, and further by Mr Nicholas Mitchell and Mr Stefano Marani pledging shares in Renergen as security.' There is truth to claims that Renergen breached several loan covenants as at 28 February 2025, involving facilities from the Development Finance Corporation (DFC), Industrial Development Corporation (IDC), and Standard Bank South Africa (SBSA). However, as Renergen pointed out in a response to Daily Maverick, these defaults were temporary and resolved shortly after the reporting period. As detailed in its preliminary financial statements released on 30 April 2025: note eight of the report discloses that Renergen 'did not meet certain loan covenants as at 29 February 2024', which included the required asset cover ratio for a key loan facility. Although the company did not consider these breaches to have a material impact on its going concern status, it noted that the lenders 'have provided waivers subsequent to period end,' which is confirmed in note 18. Importantly, Renergen stresses that these waivers 'effectively addressed the immediate concern', and no creditors have called in loans or taken possession of assets. Proof is in the production pudding Contrary to claims that the company is far off its production goals, Renergen's figures show significant progress: Liquefied natural gas (LNG) production rose 70% year-on-year to 4,885 tonnes. LNG sales increased 74.2% to 4,633 tonnes. Liquid helium (LHe) commissioning was completed in the second quarter of the current financial year. Liquid helium sales began on 14 March 2025, shortly after the reporting period. Despite this, costs associated with commissioning the helium train – without immediate helium revenue – contributed to a deeper annual loss. Renergen reported a R236-million loss after tax and a gross loss of R28-million, down from a R10-million gross profit the year before. Revenue, however, increased by 79.7% to R52-million, largely due to LNG sales. The company chalks the larger loss up to high depreciation, rising input costs and the timing mismatch of helium revenue recognition. Litigation risk not imminent Concerns also remain around the unresolved litigation with Molopo Energy, which alleges that Renergen's sale of a 5.5% stake in Tetra4 triggered a loan acceleration. The company disputes this, saying that even in a worst-case scenario, the liability would be limited to a R50-million repayment. Looking ahead, Renergen is banking on additional funding. It has secured a $10-million inflow in April 2025 from an undisclosed third party, with the potential for a further $20-million. It is also pursuing a Nasdaq IPO aimed at raising R2.9-billion ($150-million) and expects to finalise a $795-million loan package from the DFC and SBSA – part of which will refinance existing debt. Strained, not sinking Renergen is under pressure, there's no denying that. Losses have widened, debt covenant breaches legitimately occurred, and the success of its financial restructuring is wholly reliant on external funding and market confidence. But the bright spots of its operational progress and continued lender support suggest a company navigating the turbulence typical of complex energy infrastructure roll-outs. The narrative of 'serious trouble' may overstate the case. Investors would do better to track helium and LNG output in the months ahead – as well as progress toward the planned IPO – to assess whether Renergen can turn the corner from startup stress to stable operation. DM
IOL News
06-05-2025
- Business
- IOL News
High Court ruling clarifies Renergen's operations in South Africa's gas sector
CEO Stefano Marani at the helium and liquid natural gas production facility in Virginia, Free State. The company has won a High Court ruling that clarifies the regulatory framework for upstream gas sector. Image: supplied JSE-listed Renergen has won a "legal victory" that frees its onshore helium and natura gas production from operating under National Energy Regulator of South Africa (NERSA) regulations, and the ruling adds regulatory clarity to South Africa's petroleum sector. The High Court of South Africa, Gauteng Division, did, on May 2, 2025, rule in favour of Renergen's owned subsidiary Tetra4's request for a declarator that the Gas Act of 2001 does not apply to production and incidental activities related to upstream petroleum activities, including a requirement for licensing of trading, construction, and operation of liquefaction facilities outside the piped gas industry. "This judgment is a landmark win for Tetra4 and the entire upstream gas industry. It affirms that upstream gas production and related activities, including on-site liquefaction, are outside the scope of the Gas Act and NERSA's licensing regime, provided they do not supply the regulated piped gas industry,' Renergen CEO Stefano Marani said. In December 2021, Tetra4 initiated High Court motion proceedings to seek clarification on the jurisdiction of NERSA regarding certain operational activities. 'This order shows these activities fall under the regulatory purview of the Production Right granted in accordance with the Mineral and Petroleum Resources Development Act 28 of 2002 and resolves ambiguity and potential contradictions arising from disparate sets of legislation affecting Tetra4,' said Marani. Notably, the court found Tetra4 did not require a NERSA license for trading in gas (such as methane and helium) when such trading occurs outside the piped gas industry, and not involving the national pipeline grid or downstream market regulated by NERSA.
