Afrox, sub-Saharan Africa’s industrial gases and welding products company, has signed a ten-year power purchase agreement (PPA) with Discovery Green to supply renewable energy to its Kuilsriver air separation unit in Cape Town, South Africa.
Discovery Green will provide Afrox with approximately 28 GWh of renewable electricity annually, from a diversified portfolio of wind and solar assets across the Western Cape, Mpumalanga and the Free State, to power Afrox’s air separation units (ASUs) and other infrastructure.
Under the terms of a recently signed agreement, Discovery Green will provide Afrox with approximately 28 GWh of renewable electricity annually, starting in April 2028, from a diversified portfolio of wind and solar assets across the Western Cape, Mpumalanga and the Free State.
This supply is expected to reduce Afrox’s operational carbon emissions by an estimated 25 000 t of carbon dioxide equivalent per year.
“This agreement underscores Afrox’s commitment to increasing renewable energy sourcing and reducing our Scope 2 emissions. It also strengthens the resilience of our electricity supply in South Africa and supports our ability to continue delivering essential industrial gases with a reduced carbon footprint”, said Ferdinand Kuehner, Managing Director of Afrox, a Linde Company. “As the South African energy landscape undergoes rapid reform, Afrox is proactively transitioning its energy model to ensure long-term resilience and environmental stewardship,” Kuehner added.
The agreement with Discovery Green allows Afrox to receive renewable energy from a portfolio of projects, including the Overberg Wind Farm, Tournee and Notsi Solar Farms. Presently, this portfolio of assets has a generation capacity in excess of 700 MW and will grow as Discovery Green increases capacity.
Discovery Green’s model is designed to uniquely ensure a consistent and stable supply of renewable energy. By balancing wind and solar generation across different geographic locations, Afrox will receive a reliable energy supply aligned with its industrial load requirements, delivering both operational reliability and long-term price certainty.
Andre Nepgen, Discovery Green Chief Executive, said: “Afrox is demonstrating how leading industrial players can modernise their energy procurement. Our role extends beyond being an electricity trader. We provide a customizable platform that simplifies how these complex renewable portfolios are structured, for a long-term solution that delivers both price-certainty and sustainability for Afrox.”