Clean energy supply reaches impressive 92% of requirements.
Atlantis Foundries, one of Africa’s largest foundry operations, has signed a long-term power purchase agreement with a South African renewable energy business. Atlantis Foundries is one of over 40 production sites around the globe of major vehicle manufacturer Daimler Truck AG. The German multinational automotive corporation is one of the world’s largest commercial truck and bus manufacturers and is headquartered in Stuttgart, Baden-Würtemberg. Daimler Truck acquired full ownership and control of Atlantis Foundries, a foundry casting grey iron castings for the automotive industry with a focus on bus and truck medium to heavy-duty engine blocks, in 2020.
According to the terms of the agreement the renewable energy business will supply renewable, clean energy that will replace the majority of Atlantis Foundries’ current energy consumption. Based in the Atlantis Industrial area, approximately 50kms north of Cape Town, along the West Coast of South Africa, Atlantis Foundries has been manufacturing castings since 1979 and is now regarded as one of the world’s leading smart foundries by embracing the Fourth Industrial Revolution. Since the company embarked on its ambitions in 2017 with a project that aimed to combine various technologies available to gather and analyse process data with the objective of improving product quality and cost efficiency, Atlantis Foundries has made numerous equipment and process investments.
Collaborating for renewable energy adoption
“Atlantis Foundries constantly sets and exceeds global best practice. Our commitment is to both our shareholders, stakeholders and the environment. With these renewable energy projects, we are setting new standards in the South African foundry and automotive industry and alleviating pressure on our constrained national grid,” commented Pieter du Plessis, Atlantis Foundries’ Chief Executive Officer.
“Our parent company Daimler Truck AG, which was established over 125 years ago, is committed to the transformation to CO2-neutral driving. As one of the leaders in the world in our field we need to constantly review our environmental best practices. The struggle for clean air is about having the possibility to breathe healthy air every day,” continued du Plessis.
“There are varying opinions of the significance of the cost of energy as one of the major challenges facing the foundry industry. In the midst of numerous production and sales challenges, does it really benefit a plant to spend time and money on energy management?”
“Evidence suggests that it is not only worthwhile, but it is a business imperative, particularly in light of the energy insecurity we face in South Africa.”
Solar energy system supplies 21% of requirements
“In 2023 we signed an agreement with a solar energy system supplier to engineer, finance, construct and operate a ground-mounted solar energy system, comprising more than 20 000 solar panels with a total rated capacity of 13.5MWp.”
“This project is now complete and fully operational delivering 104% of the design specification. Phase 1 of the project utilises maximum space for the ground mount system and already supplies us with 21% of our plant requirements. We knew this from the beginning and we began investigating alternative supply sources and systems.”
Renewable energy platform
The renewable energy supplier is a platform within a major South African financial services and private healthcare group that was founded in 1992. The renewable energy supplier was established in 2023 to unlock access to clean, affordable power at scale for large and small businesses. The company is headquartered in Sandton, Gauteng and is listed on the JSE.
“The company seeks to address South Africa’s most pressing energy challenges: An unreliable, fossil-fuel-dependent grid and limited opportunities to cut carbon emissions. We recognised these challenges facing business and industry and devised a business to offer clients greater price certainty in electricity spend, a tangible way to reduce their carbon footprint and a path to energy resilience and long-term sustainability,” said a spokesperson for the renewable energy company.
“Through our energy wheeling framework, we can enable companies to source up to 100% of their electricity needs from large-scale wind and solar projects, with 90% as the standard, using the national grid for transmission. It leverages insurance principles of risk pooling to offer price-certain, affordable clean energy, and has formed partnerships with major companies.”
“Our model is built to offer long-term, price-certain clean energy. In this case, we developed a customised structure that integrates seamlessly with Atlantis Foundries’ existing solar asset and planning horizons. This partnership reflects a purpose-built approach by supplementing what’s already in place, not replacing it,” added the spokesperson.
“The agreement is positioned for growth. We see this as a foundation for future collaboration, with scope to extend and evolve over time to align with Atlantis Foundries’ sustainability goals.”
“This partnership builds on the company’s broader strategy to deliver price-certain, clean energy solutions for South African businesses. The journey began with the Overberg Wind Farm, a 150MW project that marked a significant step toward large-scale renewable generation. Building on that success, we then secured a 20-year power purchase for energy from the Tournee Solar Park, a 300MW solar development in Standerton, Mpumalanga, and one of the country’s largest renewable projects. Tournee was locked in at a time when grid supply is constrained, ensuring affordable, predictable pricing for clients and reinforcing energy resilience.”
“We have already signed long-term agreements with a producer of responsibly sourced commodities that are essential to modern life, which is part of a global diversified natural resources company, as well as with a leading fully integrated platinum group metals (PGMs) producer that has seven mining operations, refining and processing facilities, and a refining business.”
Atlantis Foundries’ 79%
“As I said previously, we can supply up to 90% of a company’s renewable clean energy requirements through the current legislation. Atlantis Foundries’ solar park supply project already accounts for 21% of their requirements. Our company can now guarantee 90% supply of the remaining requirements, which works out at 79%,” said the spokesperson.
“Our drive to become a smart foundry has not only been focussed on equipment and processes. It is our duty to be responsible manufacturers as well. We are achieving this through extensive cooperation between the Atlantis Foundries and our energy supply partners such as the solar energy system supplier and the renewable energy supplier, in conjunction with the Western Cape Government and the City of Cape Town. Thank you to everyone involved,” commented du Plessis.
“Now we need to formulate a plan to accommodate the remaining outstanding 8%,” concluded du Plessis.
For further details visit www.daimlertruck.com
