Octopus Energy's generation arm has inked a significant long-term Power Purchase Agreement (PPA) with Salzgitter Flachstahl, paving the way for the future production of green steel.
The agreement, facilitated with the expertise of Pexapark's advisory team, entails Octopus supplying steel manufacturer Salzgitter with 126,000MWh of clean electricity sourced from the Schiebsdorf solar farm in Brandenburg, Germany, over a period of 10 years.
See also: Octopus Energy Generation Commits $20 Billion Investment in Offshore Wind by 2030
Scheduled to commence upon the project's commissioning later this year, the PPA will bolster Salzgitter's access to clean electricity, serving as a hedge against escalating energy costs while reinforcing its commitment to green steel production.
Ralph Schaper, Head of Salzgitter's Energy Economy Department, underscored the strategic importance of the PPA in advancing the company's emissions reduction goals. “As we strive towards our strategic emissions reduction objective, this latest PPA represents a significant addition to our clean energy sources, powering our operations, facilitating green hydrogen production, and ultimately enabling the production of greener steel for our customers,” Schaper affirmed.
See also: Octopus Energy Powers Europe with Seven New Onshore Wind Farms
He hailed Octopus Energy as an ideal long-term partner, citing its extensive track record in European renewable energy.
The deal comes amidst Octopus' accelerated expansion in the German green energy sector, as the company aims to inject over €1 billion into Germany's clean energy infrastructure by 2027.
Octopus recently acquired the Schiebsdorf solar farm on behalf of the Sky fund (ORI SCSp) it manages, marking a significant addition to its growing renewable energy portfolio in Germany and globally.
See also: Origin Energy Boosts Stake in Octopus Energy with £280 Million Investment
Alex Brierley, Co-Head of Octopus Energy Generation's fund management business, hailed the partnership with Salzgitter as a transformative step towards decarbonizing heavy industry and propelling Germany's clean energy transition.
“Germany's journey towards net-zero presents numerous opportunities for engagement, and we are poised to announce more deals in the near future,” Brierley affirmed, underscoring Octopus Energy's commitment to driving sustainable innovation in the German energy landscape.
