German energy company EnBW and steel manufacturer SHS have entered into a significant long-term power purchase agreement (PPA) for renewable energy from EnBW's 960MW He Dreiht wind farm in the German North Sea. The agreement, spanning 15 years, will see SHS purchasing 50MW of electricity, supporting its efforts to transform business activities and reduce carbon emissions in steel manufacturing.
Scheduled for completion at the end of 2025, He Dreiht is poised to become one of Europe's largest energy transition projects, located 90km north of Borkum. Once operational, the wind farm is expected to provide renewable energy equivalent to the needs of 1.1 million households.
The PPA will enable SHS to cover roughly 200 gigawatt hours of annual consumption with power from the offshore wind farm, aiding in the sustainable transformation of its companies Saarstahl and Dillinger. The project aligns with SHS's goal to reduce emissions from steel production, aiming to manufacture 3.5 million metric tons – about 70% of its steel – with fewer emissions by 2030.
Stefan Rauber, Chairman of the Board of Management of SHS, highlighted the mutually beneficial nature of the collaboration, stating, “The cooperation with EnBW is a real win-win situation. We supply the steel for the wind farm, while the electricity generated here from renewable sources in turn helps us to drive the transformation process for our companies Saarstahl and Dillinger.”
EnBW CEO Georg Stamatelopoulos expressed enthusiasm about the agreement, emphasizing its significance in enabling EnBW to supply an industrial partner with 50MW of green electricity. He stated, “The interest shown by customers proves that our strategy of constructing the wind farm without any state funding and hedging most of the electricity generated through long-term supply contracts is working really well. This is a good sign that the market mechanisms are functioning.”
He Dreiht's construction involves 64 turbines spread across 63 square kilometers, with monopiles supplied by Steelwind Nordenham, a company of the Dillinger Group. These monopiles, each measuring 70 meters in length and weighing up to 1300 metric tons, are made from high-performance plates developed by Dillinger for offshore wind applications, known for their quality and durability under challenging marine conditions.
