Impala Platinum Holdings Limited (Implats) has taken a major step toward sustainability by signing a five-year Power Purchase Agreement (PPA) with Discovery Green. This agreement will provide renewable energy to Implats’ refinery operations in Springs, east of Johannesburg, reinforcing the company’s commitment to reducing its carbon footprint and stabilizing production costs amid volatile commodity prices.
Implats CEO Nico Muller highlighted the strategic importance of securing clean energy. “In a cyclical commodities market, renewable power supply agreements play a key role in controlling input costs and ensuring long-term business sustainability,” Muller stated.
This partnership builds on Implats’ ongoing renewable energy initiatives, including the commissioning of a 35MW solar plant at its Zimbabwean subsidiary, Zimplats. The first phase of an ambitious 185MW solar project has already been completed, with plans for further expansion. By the end of the 2024 financial year, renewable energy accounted for 37% of Implats’ total electricity consumption, up from 30% the previous year. Market instruments contributed 53% to the company’s renewable energy mix.
Under the agreement, Discovery Green will supply wheeled renewable energy to Impala Refineries, significantly cutting Scope 2 greenhouse gas (GHG) emissions by more than 852,000 tons of CO2e over the five-year period. Patrick Morutlwa, Chief Operating Officer at Implats, emphasized the impact: “From 2026, this PPA will reduce our Scope 2 emissions by 170,484 tons of CO2e annually, advancing our goal of a 30% reduction in carbon emissions by 2030.”
Discovery Green, a specialist in renewable energy solutions, aims to help South African businesses transition to more sustainable energy sources by replacing up to 90% of their electricity demand with price-certain renewable energy. The electricity supplied under the agreement will be sourced from both wind and solar power plants.
While South Africa’s power supply has shown improvement under Eskom, mining companies continue to grapple with rising electricity costs. With fluctuating commodity prices affecting profitability, securing stable and affordable energy sources remains a critical priority for the sector.
Andre Nepgen, Head of Discovery Green, emphasized the broader impact of the agreement. “This partnership with Implats is a significant step in South Africa’s energy transition. It demonstrates how collaboration can drive sustainability and climate action while ensuring business competitiveness in a low-carbon economy.”
By securing this renewable energy deal, Implats strengthens its leadership in the platinum group metals (PGM) industry’s shift to clean energy, reinforcing its commitment to sustainability, cost efficiency, and long-term growth.
