Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter Group, has signed a 15-year power purchase agreement (PPA) with Iberdrola Deutschland to source electricity from the Baltic Eagle offshore wind farm in the German Baltic Sea. Under the agreement, Salzgitter Flachstahl will receive 114 MW of electricity from the wind farm, which is set to go online at the end of 2024.
The electricity generated by the wind turbines will be used to produce green hydrogen, a key component in Salzgitter AG's goal to produce carbon-neutral steel. The renewable energy will also help secure the SALCOS® – Salzgitter Low CO2 Steelmaking transformation program, which aims to reduce the steelmaker's carbon footprint.
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“The collaboration envisaged with Iberdrola is another key component of our energy strategy. Our main aim is to secure our requirements for electricity from renewables for Salzgitter AG and for the SALCOS® transformation program in particular,” said Gunnar Groebler, Salzgitter AG's CEO. “True to our ‘Partnering for Transformation mission,' establishing sustainable production and process chains is becoming increasingly important for us and for our suppliers and customers sectors. By concluding this PPA, we have taken another big step toward climate-neutral production.”
The Baltic Eagle offshore wind farm is being constructed around 30 kilometres to the northeast of the island of Rügen and will have a total capacity of 476 MW once commissioned. This partnership will allow Salzgitter to significantly reduce its carbon footprint and achieve its sustainability goals.
According to Groebler, “This PPA with Iberdrola demonstrates Salzgitter's commitment to reducing our carbon footprint and promoting sustainability. We look forward to working with Iberdrola to achieve our shared goals of producing renewable energy and creating a cleaner future for generations to come.”
