German steel producer Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, has intensified its efforts towards sustainability by expanding its renewable energy procurement through a new agreement with the local unit of Spain's Iberdrola SA.
In an announcement made on Tuesday, Salzgitter revealed the signing of a 15-year power purchase agreement (PPA) with Iberdrola Deutschland, tied to the latter's forthcoming large-scale solar park in Germany. The solar project, located in Saxony-Anhalt, boasts a capacity of 60 megawatts peak (MWp) and is slated for commissioning in 2025.
Under the terms of the agreement, Salzgitter Flachstahl will purchase approximately 60 gigawatt-hours (GWh) of solar power annually, amounting to a total of 900 GWh over the contract's 15-year duration.
This latest PPA marks a continuation of Salzgitter's collaboration with Iberdrola, following a similar deal signed last year for a 114-MW portion of the Baltic Eagle offshore wind project in the Baltic Sea. These agreements underscore Salzgitter's steadfast commitment to sourcing renewable energy to power its operations and reduce its carbon footprint.
In addition to its renewable energy initiatives, Salzgitter has recently embarked on a strategic partnership with Uniper SE to procure green hydrogen. This initiative aligns with Salzgitter's plans to produce almost carbon dioxide-neutral steel, as announced last week, further cementing the company's position as a leader in sustainable steel production.
