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Post: Discovery Green Signs 10 Year Renewable Energy Deal With York Timbers

Discovery Green Signs 10 Year Renewable Energy Deal With York Timbers

  • Renewable energy will supply 90% of electricity demand at York Timbers’ Jessievale sawmill. 
  • Agreement is expected to cut carbon emissions by thousands of tonnes of CO₂ annually. 
  • Long term power pricing certainty will support operational efficiency and profitability.

 

Discovery Green, a business of Discovery Limited, has signed a 10-year power purchase agreement with York Timber Holdings, South Africa’s largest solid wood processor, to supply renewable energy to its Jessievale sawmill.

The agreement will enable 90% of the sawmill’s electricity consumption to be sourced from renewable energy, reducing carbon emissions by thousands of tonnes of CO₂ each year while delivering improved energy economics over the next decade.

York Timbers becomes the latest company to join Discovery Green’s energy wheeling platform, which is already used by more than 50 businesses pursuing renewable energy and decarbonisation goals. Discovery Green currently has more than 740 MW of generation capacity under development for its customer base.

Andre Nepgen, Head of Discovery Green, said the agreement demonstrates growing momentum among industrial companies seeking to strengthen both competitiveness and sustainability performance through renewable energy.

“We are excited to supply York Timbers with affordable renewable energy. It is encouraging to see a listed forestry company helping reshape the commercial and sustainability landscape of the sector,” he said.

Nepgen added that the partnership reflects Discovery Green’s strategy of supporting carbon intensive industries in creating new sources of value through renewable energy while meeting their environmental objectives.

According to York Timbers Interim Chief Executive Officer Schalk Barnard, the company selected Discovery Green after the renewable energy provider developed a solution tailored to its operational requirements.

“Discovery Green took the time to understand our business and worked closely with us to develop a solution that suited our needs,” Barnard said.

He noted that long term energy cost certainty was a key factor in the decision, particularly as electricity remains a significant contributor to production costs and overall profitability.

The renewable energy agreement is also expected to support York Timbers’ environmental compliance commitments. As a fully integrated forestry company, York Timbers adheres to internationally recognised sustainability standards, including those of the Forest Stewardship Council and the International Finance Corporation Performance Standards on Environmental and Social Sustainability.

Barnard said these standards help maintain market access, strengthen stakeholder confidence and support the company’s broader sustainability goals, with clean energy forming an important part of that commitment.

“The impact of cost-effective production from renewable energy will translate into a meaningful return for our shareholders, while embedded sustainable practices will deliver positive environmental outcomes,” he said.

Nepgen said York Timbers’ commitment to responsible forestry extends across its value chain, from certified plantations to lumber and plywood products that meet international standards.

“This agreement shows how large scale agricultural and forestry businesses can modernise energy procurement to achieve commercial and environmental benefits. We are proud to have partnered with York Timbers from the beginning of its renewable energy journey and to have developed a renewable energy portfolio that delivers both price certainty and sustainability,” he said.

Author: Bryan Groenendaal

Source: GBA – Reliable News on the Energy Sector in Africa

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