Salzgitter Flachstahl GmbH and Iberdrola Deutschland have concluded a long-term electricity supply agreement as part of the Salzgitter Group's strategic mission "Partnering for Transformation", according to which it works closely with customers and partners to achieve its climate targets. The electricity is to come from the "Baltic Eagle" offshore wind farm in the German Baltic Sea, which is currently under construction.
Wind power for virtually CO2-free steel
With this so-called Power Purchase Agreement (PPA), Salzgitter Flachstahl GmbH has secured the supply of 114 megawatts (MW) of green electricity from the new offshore wind farm for a period of 15 years. After commissioning, Baltic Eagle will have a total capacity of 476 MW. The offshore wind farm is scheduled to come online in late 2024 and is currently under construction about 30 kilometers northeast of the island of Rügen.
The SALCOS® (Salzgitter Low CO2 Steelmaking) transformation program will be further secured by the sustainably produced energy. The green electricity from the wind turbines will be used to produce green hydrogen, which is a core element to produce Salzgitter AG's virtually CO2-free steel.
"The planned cooperation with Iberdrola is another important building block in our energy strategy. Here, we are primarily concerned with securing the demand for regeneratively generated electricity for Salzgitter AG and, in particular, for the SALCOS® transformation program. True to our mission of 'Partnering for Transformation'," explains Gunnar Groebler, CEO of Salzgitter AG.
"The cooperation with Salzgitter AG is another important step for Iberdrola Germany in our integrated growth strategy in this important core market. With strong partnerships and long-term power purchase agreements (PPAs), we are contributing to the green transformation of German industry and supporting, among other things, the market ramp-up of green hydrogen. In this area, we want to cooperate with other key players in the German economy and support them in achieving their climate goals with market-based solutions, such as PPAs." , said Felipe Montero, CEO of Iberdrola Germany.
The Salzgitter Group is already a partner for the generation of renewable energies with many of its business units. Ilsenburger Grobblech GmbH (ILG), for example, has been supplying heavy plate as a full-range supplier to the onshore and, since 2010, increasingly also to the offshore market of the wind energy sector since 1996. Other products of the Group for wind turbines include, for instance, HFI longitudinally welded steel tubes, precision steel tubes for the nacelle and large-diameter tubes for the substructures of offshore wind farms.