South African industrial gases producer Afrox has signed a 10-year renewable energy supply agreement (PPA) with Discovery Green, marking another major corporate clean energy procurement deal in South Africa’s private electricity market.
Under the May 2026 agreement, Discovery Green will supply approximately 28 GWh of renewable electricity annually to Afrox’s Kuilsriver air separation unit in Cape Town, with deliveries set to begin in April 2028. The renewable supply will be sourced from a diversified portfolio of wind and solar assets across the Western Cape, Mpumalanga, and Free State.
The PPA with Discovery Green is expected to reduce Afrox’s operational carbon emissions by roughly 25,000 tons of CO2 equivalent annually. This is while also providing long-term price certainty amid South Africa’s ongoing electricity market reforms and industrial decarbonization push.
Additionally, Discovery Green said the agreement benefits from its portfolio model. A model that combines geographically diversified wind and solar generation to better match industrial consumption profiles.
Afrox-Discovery Renewable Energy PPA Amid Growing Industrial Decarbonization Push in South Africa
The agreement highlights the continued maturation of South Africa’s wheeled renewable energy market. Corporates in South Africa are also increasingly bypassing sole dependence on grid electricity through long-term renewable procurement contracts. Others like Seriti – whose coal mining operations supplies over 30% of Eskom’s electricity – are also developing their own green energy generation assets such as the 900 MW Mpumalanga wind farm.
For Afrox, a subsidiary of global industrial gas major Linde, electricity reliability is very important given the continuous nature of industrial gas production. The renewable agreement therefore serves multiple purposes including improving supply resilience amid South Africa’s grid volatility and lowering Scope 2 emissions. Afrox’s 10-year PPA with Discovery Green is also aimed at improving long-term cost predictability.
Additionally, the agreement strengthens Discovery Green’s growing position as a renewable energy trader and corporate offtake platform. Discovery Green has also been building a portfolio of long-term PPAs with major clients. This cuts across mining, hospitality, real estate, and manufacturing sectors. Prior deals include agreements with Impala Platinum, Glencore, Southern Sun, and others.
Project Cost
While financial terms were not disclosed, the deal is structured as a long-term corporate renewable supply agreement rather than direct project ownership.
Key commercial features will likely include:
- fixed or semi-indexed long-term renewable pricing
- wheeling through South Africa’s national transmission infrastructure
- portfolio-based balancing between solar and wind assets
Discovery Green’s supply portfolio currently includes projects such as:
- Overberg Wind Farm
- Tournee Solar Park
- Notsi Solar Farm
Discovery Green also indicates its current asset portfolio exceeds 700 MW of generation capacity. This will continue expanding as additional projects are contracted.
Fact Sheet for Afrox Renewable Energy Supply Agreement
Location: Kuilsriver Air Separation Unit in Cape Town, South Africa
Offtaker: Afrox
Supplier: Discovery Green
Contract Type: Renewable Energy Power Purchase Agreement (PPA)
Duration: 10 years
Annual Supply Volume: 28 GWh
Supply Start Date: April 2028
Renewable Sources: Wind and Solar Portfolio
Expected Emissions Reduction: 25,000 tCO2e annually
Afrox-Discovery Renewable Energy PPA: Who is Involved
Industrial Offtaker: Afrox (African Oxygen Limited)
Renewable Energy Supplier: Discovery Green
Parent Company: Discovery Limited
Underlying Renewable Asset Partner: Red Rocket Group
Afrox-Discovery Renewable Energy PPA and the Greater SA Energy Procurement Market
The Afrox-Discovery Green agreement is another sign that South Africa’s corporate renewable procurement market is moving from single pilot deals into bigger commercial ecosystems.
As more energy-intensive industrial users seek pricing certainty and supply stability, portfolio-based renewable trading models such as Discovery Green’s are likely to gain further traction.
The deal also positions Afrox among a growing group of industrial firms proactively restructuring their energy procurement strategies ahead of stricter decarbonization and carbon cost pressures.
