Afrox has signed a 10-year power purchase agreement with Discovery Green to supply renewable electricity to its air separation unit in Kuils River, Cape Town.
Under the agreement, Discovery Green will supply approximately 28 GWh of electricity annually from April 2028, sourced from a diversified portfolio of wind and solar projects across the Western Cape, Mpumalanga and the Free State.
The portfolio includes assets such as the Overberg wind farm and the Tournee and Notsi solar plants with a combined generation capacity exceeding 700 MW.
Afrox Managing Director Ferdinand Kuehner says the agreement is expected to reduce operational carbon emissions by around 25 000 tonnes of CO₂ equivalent per year while improving supply resilience at the facility.
The structure of the agreement reflects a growing shift towards trader-led procurement models in South Africa’s evolving electricity market where customers contract renewable energy from aggregated portfolios rather than single generation assets.
Discovery Green Chief Executive Andre Nepgen says the model enables a more consistent supply profile by combining wind and solar generation across different geographic locations, aligning output more closely with industrial load requirements.
