Renergen’s CEO, Stefano Marani, has decided to relocate to Austin, Texas, despite the gas project investment estimated to be worth at least R1 trillion in Virginia, in the Free State.

His move from South Africa involves unlocking funding opportunities in the US for phase 2 of the natural gas project based in the Free State, according to a media statement. 

“As such, a board decision authorised me to travel to the US to see through the capital raising process.” He added the organisational structure allows him to be in South Africa during pre-determined periods of travel.

An aerial view of the Virginia Gas Project. Photo: Renergen

“COVID has taught everyone that remote working is feasible, which is no different for Stefano,“ it adds. “Nick Mitchell, our COO, oversees the business’s operational aspects, which Stefano is not involved in.” 

Marani will be in South Africa to have interactions with Mitchell and the team, while his focus will be on strategic Initial Public Offering (IPO)-related initiatives.

His move comes after Cilandia Capital’s activist investment manager, Albie Cilliers, made damning allegations about Marani and others. Allegations were South Africa Molopo Energy sold 100% of its gas rights of the Virginia Gas Project to Windmill Energy for R5 million. Then Marani sold 90% to Renergen for R655 million. Marani has since spoken on the allegations to set the record straight.

In his explanation, the rights of the Virginia Gas Project were sold by Molopo Energy because the investment was not economically viable to them.

 For the shares to be sold for R655 million, is because of the time that was taken to make some discoveries, which included how economically viable the place can be. He mentioned that they flew in an independent qualified reservoir engineer from Canada to verify all they had discovered.

The Virginia Gas Project. Photo: Free State Provincial Government

For the Virginia Gas Project to land on the lap of Renergen, Windfall Energy's management entered into a share-for-share agreement with the company, involving a cash infusion. 

This deal underwent scrutiny by Renergen shareholders and received unanimous approval. Notably, the JSE and Takeover Regulatory Panel mandated an impartial evaluation, conducted by Mazars, due to Marani's related party status. The pricing discussions and shareholder vote excluded Marani, who recused himself from the process. 

It was announced at the beginning of the year the government’s Central Energy Fund (CEF) will invest R1 billion into the gas project. The primary objective of its investment directive is to enhance South Africa's energy security by engaging in activities such as exploration, acquisition, development, marketing, and forming strategic alliances. Dr Ishmael Poolo, the CEO of CEF, expressed that the company's involvement aligns with its role as a vital investor in the energy value chain, aimed at bolstering the energy requirements of the region.

This is one of the projects the Free State Provincial Government is proud of. The provincial premier Mxolisi Dukwana at the province’s energy security indaba outlined that the project would assist the province in playing a vital role in being the country’s central energy fund. Touching on the progress the company has made, the company’s construction of its Phase 2 plant on this site in Virginia, with an estimated $1.16 billion investment value, is under way.

OFM News/Tshehla Koteli Corné