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Update: Market Chatter: South Africa's 810-MW Offshore Windfarm Delayed

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(Updates with comments from GenesisHexicon in fourth, sixth, and seventh paragraphs.)

The development of South Africa's 810-megawatt Gagasi offshore wind project was delayed after the application for environmental authorization was withdrawn due to proposed design changes, Reuters reported Thursday, citing Acer (Africa) Environmental Consultants.

Acer was appointed to conduct the environmental assessment for Africa's first proposed offshore wind farm introduced in 2022. GenesisHexicon, a joint venture between Sweden's Hexicon and South Africa's Genesis Eco-Energy Developments, owns the project.

However, the consultancy firm did not proceed with the study after the environmental application was withdrawn last year, as the developers intended to make technical changes from floating to anchored wind turbines, Acer Managing Director Dieter Heinsohn told Reuters.

"We are reassessing the environmental impact assessment alongside the revised technical design. It is anticipated that work to progress the environmental authorization will be done in parallel or will continue once these other workstreams have been concluded," GenesisHexicon toldin a statement.

The project timeline on the company website indicated that environmental authorization for the windfarm's offshore components was originally expected in Q2, at the same time the application for onshore components would be submitted.

The company also said that it is working with the relevant authorities to resolve legal concerns regarding allocation of seabed leases, and that it is "actively managing" the potential impact on project timeline.

"Offshore wind projects require early and significant development phase spending to progress efficiently, and obtaining a secured seabed lease is essential in providing the necessary confidence for project developers to release the investment funds required."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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