Industrial gases and welding products company Afrox has signed a ten-year power purchase agreement (PPA) with renewable energy trading company Discovery Green to supply renewable energy to Afrox's Kuilsriver air separation unit (ASU), in Cape Town.

Discovery Green will provide the ASU with about 28 GWh/y of renewable electricity under the agreement, starting in April 2028, from a diversified portfolio of wind and solar assets across the Western Cape, Mpumalanga and the Free State.

This renewable-energy supply is expected to reduce Afrox’s operational carbon emissions by an estimated 25 000 t/y of CO₂-equivalent.

“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,” says Afrox MD Ferdinand Kuehner.

“As the South African energy landscape undergoes rapid reform, Afrox is proactively transitioning its energy model to ensure long-term resilience and environmental stewardship,” he adds.

Further, the agreement with Discovery Green allows Afrox to receive renewable energy from a portfolio of projects, including the Overberg Wind Farm and the Tournee and Notsi solar farms, says Discovery Green.

Presently, this portfolio of assets has generation capacity in excess of 700 MW and will grow as Discovery Green increases capacity, the company says.

Discovery Green’s model is designed to 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.

“Afrox is an example of how industrial companies can modernise their energy procurement. We provide a customisable platform that simplifies how these complex renewable portfolios are structured to create a long-term solution that delivers both price-certainty and sustainability for Afrox,” says Discovery Green CE André Nepgen.