Discovery Green wheels in five new agreements across mining, hospitality and property sectors

Renewable energy has two facets to it, according to Andre Nepgen, the head of Discovery Green. “First, you have the engineering aspect, which is extremely complex, and South Africa has the best engineers doing this with incredible technology. However, once you put electricity on to the grid, getting it to customers on the other side in a way that is low risk and well managed is much more a mathematical, financial and even actuarial problem,” he told Daily Maverick on the sidelines of the Mining Indaba this week.

As Nepgen explains it, Discovery Green sees itself as a renewable energy trader/platform, doing business on a bigger scale than companies that help homeowners access renewable energy.

The company announced this week that it had signed on five new clients, securing long-term wheeling deals in the mining, property and hospitality sectors with Impala Platinum Holdings (Implats), KP Lime, The Capital Hotels | Apartments | Resorts, Balwin Properties and Fortress REIT.

Discovery Green head Andre Nepgen. (Photo: Supplied)

Implats milestone

The agreement with Implats marks a milestone in Discovery Green’s portfolio. Starting in 2026, a five-year power purchase agreement (PPA) will supply 90% of the electricity needs for Impala Refineries in Springs, Gauteng.

This agreement will reduce Impala Refineries’ Scope 2 greenhouse gas (GHG) emissions by more than 852,000 tonnes of CO2 equivalent (CO2e) over five years and deliver significant cost savings on more than 130,000MWh of electricity per annum.

“One of the appeal factors for this deal was the five-year term compared with the typical 20-year agreements in the market,” Nepgen told Daily Maverick.

Patrick Morutlwa, the group chief operating officer at Implats, said that from 2026, the PPA was expected to reduce Implats’ Scope 2 GHG emissions by 170,484 tonnes of CO2e per year. Implats is decarbonising its operations to achieve carbon neutrality by 2050, with a short-term target to reduce carbon emissions by 30% by 2030 against a 2019 baseline. This is equivalent to annual reductions of 243,000 tonnes of CO2e by 2030.

“The agreement with Discovery Green aligns with our decarbonisation and energy security strategy to adopt renewable and low-carbon energy sources, and contributes to achieving several of the United Nations’ Sustainable Development Goals,” he said.

The Impala Rustenburg operation, which accounts for about 60% of the group’s energy usage, established a partnership with an energy services company in 2019. The initiative has primarily targeted refrigeration, ventilation, compressed air and hot water supply systems at the mine.

KP Lime

KP Lime, a producer and distributor of burnt lime and dolomite has signed on to a 10-year PPA with Discovery Green to supply 54,000MWh of renewable energy annually to KP Lime’s Bowden mine in the Northern Cape. This agreement will replace more than 90% of the mine’s energy needs with renewable energy, delivering significant cost savings and contributing to the mine’s sustainability goals.

Aneesh Misra, the CEO of KP Lime, said the initiative aligned closely with group company IMR Metallurgical Resources’ global commitment to sustainability and environmental responsibility.

“With Discovery Green’s remarkable 90% renewable energy coverage, we can significantly reduce emissions while achieving meaningful operational savings. By signing this agreement, we are reinforcing our dedication to advancing sustainability on a global scale, demonstrating that environmental stewardship and business success can go hand in hand,” said Misra.

The Capital Hotels | Apartments | Resorts

A 15-year contract with Discovery Green will supply 5,000MWh of renewable energy annually to three of The Capital’s properties in Gauteng.

The Capital’s founder and CEO, Marc Wachsberger, said the hospitality group was constantly evaluating its sustainability strategy, including reducing its carbon footprint by exploring alternative green energy sources.

“Discovery Green’s offering stood out as the best in the market with its high coverage level of 90% replacement of consumption and flexible, platform-based contracting,” he said.

Balwin Properties

A 20-year contract will see Discovery Green supply renewable energy to four Balwin sites, totalling 13,600MWh annually.

Steve Brookes, CEO of Balwin Properties, commented: “This collaboration aligns the provision of clean, renewable energy with peak usage times for our residents, all under a financial model that offers savings compared with municipal rates.”

Fortress REIT

The property group has signed on for a 10-year wheeling arrangement wherein Discovery Green will wheel renewable energy to 14 Fortress properties, increasing Fortress’ renewable energy penetration by up to 100% in these buildings.

Steven Brown, Fortress CEO, said the wheeling agreement would be critical in helping the property group achieve its 2030 decarbonisation target.

The five companies collectively will replace more than 90% of their electricity demand with renewable energy wheeled from the largest wind and solar plants in South Africa, saving a total of 39,000 tonnes of CO2e annually.

“The transition to renewable energy allows the companies to avoid escalating electricity costs, which are rising faster than inflation, and mitigate the impending impact of carbon taxes,” said Nepgen. DM