Mpact signs 5-year renewable energy deal to power South African paper mills

SOUTH AFRICA – JSE-listed packaging and recycling group Mpact has entered into a five-year power purchase agreement (PPA) with energy trader Enpower Trading, securing 30 GWh per year of renewable electricity to supply three of its key paper mills in South Africa.

The agreement will power Mpact’s Felixton, Mkhondo, and Springs facilities with clean energy sourced from SolarAfrica’s SunCentral solar PV plant in De Aar, Northern Cape, one of the largest solar developments in the country.

Mpact CEO Bruce Strong said the deal marks a significant step in the company’s sustainability journey.

“By securing a reliable supply of renewable energy, we are not only reducing our environmental footprint but also ensuring the long-term sustainability and competitiveness of our manufacturing facilities,” he said.

“This partnership aligns perfectly with our vision for a more sustainable future and demonstrates our commitment to environmental stewardship and operational efficiency.”

The shift will cut Mpact’s carbon footprint by an estimated 30,000 tonnes of CO₂ annually, contributing to South Africa’s broader decarbonization ambitions.

The company aims to gradually transition its operations toward higher renewable energy integration, reducing reliance on fossil-fuel-based electricity and mitigating exposure to energy price volatility.

Enpower Trading CEO James Beatty said the agreement showcases the potential of strategic collaborations in driving clean energy adoption in industrial sectors.

“Enpower Trading aims to empower businesses like Mpact with the tools they need to achieve their sustainability goals while contributing to a robust and resilient energy landscape in South Africa,” he noted.

The PPA also reflects growing interest among South African manufacturers in diversifying energy supply, particularly amid ongoing challenges with grid reliability.

By sourcing power directly from renewable producers through licensed traders like Enpower, companies can lock in cleaner and often more predictable electricity costs over the long term.

Mpact is South Africa’s leading paper and plastics packaging manufacturer, with integrated recycling operations that process recovered paper and plastics into high-value packaging products.

The company’s sustainability strategy emphasizes closed-loop systems, resource efficiency, and partnerships that advance the circular economy.

The deal with Enpower Trading comes amid a broader wave of corporate renewable PPAs in South Africa, driven by regulatory reforms allowing greater private power generation and wheeling.

According to the South African Photovoltaic Industry Association (SAPVIA), corporate PPAs are expected to account for a growing share of the country’s renewable capacity over the next decade.

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