German steelmaker Salzgitter AG has announced that its subsidiary Salzgitter Flachstahl GmbH and Energiekontor AG, one of Germany’s leading project developers and operators of wind and solar parks, have signed a long-term power purchase agreement for 15 years.
Under the agreement, Energiekontor will supply more than 120 gigawatts of green electricity per year to the German steelmaker from its recently approved two solar parks with a generation capacity of around 113 megawatts in Mecklenburg-Western Pomerania, enabling Salzgitter to cut its emissions by about 84,000 mt per year. The construction of the solar parks is about to begin, with the start of operations scheduled for mid-2026.
Salzgitter plans to use green electricity in the production of hydrogen, which, in turn, will replace coal in its blast furnaces, thereby allowing the company to offer its low-carbon steel under its SALCOS® program.