Press release —
Renewable energy by Discovery Green powers sustainably sourced timber
Discovery Green, a Discovery Limited business, is proud to announce the signing of a 10-year power purchase agreement (PPA) with JSE-listed company, York Timber Holdings (“York Timbers”), the largest solid wood processor in South Africa.. The agreement will support greater cost efficiencies in York Timbers' operations and marks a significant step in the company's ongoing journey to embed sustainability into its business while maximising environmental value.
Under the agreement, Discovery Green will convert 90% of the Jessievale sawmill’s energy usage into renewable energy - reducing its carbon emissions by thousands of tonnes of CO₂ each year. This will ultimately deliver better energy economics for the next 10 years.
York Timbers joins more than 50 companies that have selected Discovery Green’s trusted energy wheeling platform to meet their renewable energy objectives. Discovery Green already has more than 740MW in generation under development for these customers.
Andre Nepgen, Head of Discovery Green, said: “We are excited to supply York Timbers with affordable, renewable energy. It is heartening to see a listed forestry company take the lead in reshaping the commercial and sustainability landscape of the forestry sector.”
“Our partnership speaks to our intention to meaningfully support carbon-intensive industries in creating new value paths through the use of renewable energy, and meeting their sustainability objectives in the process.”
A renewable journey, anchored in positive business outcomes
Schalk Barnard, interim Chief Executive Officer (CEO) for York Timbers praised Discovery Green’s tailored approach to renewable energy: “Discovery Green took the time to understand our business and worked closely with us to develop a solution that suited our needs.”
Cost was a central driver in their decision to partner with Discovery Green. Barnard says, “The solution provides long-term cost certainty at a time when energy costs remain a significant driver of our production costs and overall profitability.”
The PPA will also have a positive impact on York Timbers’ regulatory compliance. Barnard explains: .“As a fully integrated forestry company, we are committed to meeting internationally recognised standards, including Forest Stewardship Council (FSC) certification requirements and the International Finance Corporation's (IFC) Performance Standards on Environmental and Social Sustainability. These standards help us maintain access to key markets, strengthen stakeholder confidence and support our broader sustainability objectives. Clean energy is an important component of that commitment.”
He concludes: “The impact of cost effective production from renewable energy will translate into a meaningful return for our shareholders, while the resulting embedded sustainable practices will generate positive returns for the environment.”
Nepgen says, “York Timbers is a champion of sustainably sourced timber, creating lasting structuresTheir commitment to responsible forestry extends throughout the value chain, from FSC-certified plantations to certified lumber and plywood products that meet internationally recognised standards. We are excited to support that commitment with renewable energy solutions that create lasting commercial and environmental value."
“This PPA is an example of how enterprise-scale agricultural and forestry players can modernise their energy procurement for commercial impact. We are proud to have acted as a partner from the start of York Timbers’ renewable energy journey, customising a renewable portfolio that offers them price-certainty and sustainability.”
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About Discovery
Discovery Limited is a South African-founded financial services organisation that operates in the healthcare, life assurance, short-term insurance, banking, savings and investment and wellness markets. Since inception in 1992, Discovery has been guided by a clear core purpose – to make people healthier and to enhance and protect their lives. This has manifested in its globally recognised Vitality Shared-Value insurance model, active in over 37 countries with over 50 million members. The model is exported and scaled through the Global Vitality Network, an alliance of some of the largest insurers across key markets including AIA (Asia), Ping An (China), Sumitomo (Japan), John Hancock (US), Manulife (Canada) and Vitality Life & Health (UK, wholly owned). Discovery trades on the Johannesburg Securities Exchange as DSY.
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About Discovery Green
Discovery Green, backed by the scale and actuarial expertise of the Discovery Group, is a licensed energy trader operating a proprietary renewable energy platform for South African businesses. The platform applies actuarial modelling to design and optimise diversified wind and solar portfolios, replacing on average 90% of a client’s electricity demand with cost-effective, price-certain renewable energy. Through long-term power purchase agreements with some of the country’s largest renewable energy plants, Discovery Green aggregates supply, optimises coverage against client load profiles, and delivers long-term price certainty, regulatory compliance, and measurable decarbonisation at scale.
Follow Discovery Green CEO, Andre Nepgen on LinkedIn.
About York Timbers
York Timber Holdings Limited (JSE: YRK) is South Africa's largest solid wood processor. Incorporated in 1916 and listed on the JSE since 1946, the Group operates an integrated forestry and manufacturing business, producing high-quality lumber and plywood for local and international markets.
York owns and manages 88,500 hectares of land, of which approximately 58,700 hectares comprise commercial plantations certified under the Forest Stewardship Council® (FSC® C002336). The balance of the land is dedicated to conservation areas, natural biodiversity, streams, infrastructure and other environmental stewardship initiatives.
Through its integrated forestry and manufacturing operations, the Group is committed to responsible resource management, environmental stewardship and sustainable business practices that create long-term value for stakeholders.
