Impala Platinum Holdings Limited (Implats) has signed a five-year power purchase agreement (PPA) with Discovery Green to supply wheeled renewable energy to its Impala Refineries operation in Springs, east of Johannesburg. The agreement marks a significant step in Implats’ sustainability strategy as the company aims to reduce its carbon footprint and manage production costs amid fluctuating commodity prices.

Implats CEO Nico Muller emphasized the importance of securing renewable and sustainable power supply to ensure long-term business sustainability. “In a cyclical commodities price environment, renewable power supply agreements are a significant lever in our ability to control input costs,” Muller stated.

The new PPA with Discovery Green builds on Implats’ renewable energy initiatives, including the recently completed 35MW solar plant at its Zimbabwean operation, Zimplats. The first phase of the 185MW solar project has been commissioned, and the company continues to expand its renewable energy portfolio.

As of the end of Implats’ 2024 financial year, renewable electricity accounted for 37% of the company’s total electricity consumption, an increase from 30% in the previous year. Market instruments contributed to 53% of this renewable energy mix.

Under the agreement, Discovery Green will supply renewable energy to Impala Refineries, significantly reducing the facility’s Scope 2 greenhouse gas (GHG) emissions by over 852,000 tons of CO2e over the initial five-year period. Patrick Morutlwa, Chief Operating Officer at Implats, highlighted the impact of the agreement, stating, “From 2026, the PPA will reduce our Scope 2 GHG emissions by 170,484 tons CO2e per year and advance our goal of achieving a 30% reduction in carbon emissions by 2030.”

Discovery Green, a company focused on renewable power supply, aims to help South African businesses replace 90% of their electricity demand with price-certain renewable energy. The electricity supplied under the agreement will be sourced from wind and solar power plants.

The deal comes as South Africa’s power supply situation improves under Eskom, but mining companies continue to face rising electricity costs. With commodity price volatility affecting profitability, securing stable and sustainable energy sources remains a priority for companies in the mining sector.

Andre Nepgen, Head of Discovery Green, described the partnership with Implats as a crucial step in South Africa’s energy transition. “This agreement with Implats represents a significant step towards South Africa’s energy transition and highlights the power of collaboration in addressing climate challenges. By integrating renewable energy into their operations, Implats is not only advancing decarbonization but also positioning itself for competitiveness in a low-carbon economy,” he said.

The agreement reinforces Implats’ commitment to sustainability and cost efficiency, further cementing its position as a leader in the platinum group metals (PGM) industry’s transition to cleaner energy.