South Africa: Afrox Signs 10-year PPA with Renewable Energy Platform Discovery Green

Industrial gases and welding products company Afrox has signed a long-term renewable electricity agreement with Discovery Green to supply clean power to its air separation unit in Kuilsriver, near Cape Town, South Africa.

Under the 10-year power purchase agreement, Discovery Green will provide Afrox with 28 gigawatt-hours of renewable electricity annually, with supply scheduled to commence in April 2028.

The electricity will be sourced from a diversified portfolio of wind and solar projects located across the Western Cape, Mpumalanga and the Free State.

The portfolio, with a combined generation capacity of about 700 megawatts, includes renewable energy assets such as the Overberg Wind Farm and the Tournee and Notsi solar farms.

The agreement forms part of Afrox’s broader efforts to reduce its carbon footprint and strengthen the sustainability of its operations in South Africa.

According to the company, the renewable power supply is expected to reduce its operational carbon emissions by approximately 25,000 tonnes of carbon dioxide equivalent annually.

Commenting on the development, Managing Director of Afrox, Ferdinand Kuehner, said the agreement reinforces the company’s commitment to expanding its use of renewable energy while improving operational resilience.

“This agreement underscores Afrox’s commitment to increasing its use of renewable energy and reducing Scope 2 emissions,” he said.

“It also enhances the resilience of our electricity supply in South Africa and supports our ability to continue delivering essential industrial gases with a lower carbon footprint.”

The move reflects growing momentum among industrial companies in South Africa to secure cleaner and more reliable energy sources amid persistent electricity supply challenges and increasing pressure to reduce emissions.

South Africa’s energy-intensive industries have increasingly turned to private renewable energy agreements in response to grid instability, rising electricity costs and sustainability commitments.

Power purchase agreements have become an important mechanism for companies seeking long-term energy security while supporting decarbonisation goals.

Afrox, a subsidiary of global industrial gases group Linde, operates across multiple African markets, with operations in nine countries in addition to South Africa. The company also manages operations in five other African countries on behalf of Linde.

The latest agreement further reflects the expanding role of renewable energy in supporting industrial operations across the continent, particularly as businesses seek to align with global environmental targets and improve energy resilience.

The development also signifies increasing private-sector participation in Africa’s energy transition, with companies investing in cleaner technologies to manage both environmental and operational risks.