The energy supplier EnBW and steelmaker Salzgitter Flachstahl GmbH have signed a long-term electricity supply contract. The electricity is set to come from the planned 'He Dreiht' offshore wind farm in the North Sea.
According to Salzgitter, this power purchase agreement (PPA), has secured the steelmaker a supply of 50 megawatts (MW) of green electricity for 15 years from the new 900 MW wind farm located around 90km north of the island of Borkum. The facility is scheduled to be commissioned at the end of 2025 and will safeguard Salzgitter's transformation project known as SALCOS® – Salzgitter Low CO2 Steelmaking. Producing green hydrogen using sustainably generated energy is a core element in the production of virtually carbon-free steel, says Salzgitter.
Salzgitter AG, one of Germany’s leading steel and technology groups, has a crude steel capacity of 7Mt/yr and is a pioneer of the circular economy. The company is focused on sustainable innovation and on transforming products and processes in steel production, processing, trading and technology.
The “Salzgitter AG 2030” strategy is anchored to the principle of 'Pioneering for Circular Solutions', and setting new benchmarks in the industry. The company's aspirations have been realized through strong initiatives such as SALCOS® – Salzgitter's low CO2 steelmaking programme. The company claims to be 'actively driving the process of development towards a circular economy' through establishing partnerships and networks.
EnBW employs over 26,000 people and is one of the largest energy companies in Germany and Europe, supplying around 5.5 million customers with electricity, gas, water and services and products in the areas of infrastructure and energy. The expansion of renewable energies is a cornerstone of the company's growth strategy and a key focus of investment.
"This co-operation with EnBW is a further building block in our energy strategy to secure the demand for regeneratively generated electricity for Salzgitter AG and in particular for the SALCOS® transformation programme. Here, too, we are working with strong partners – true to our mission of 'Partnering for Transformation'," says Gunnar Groebler, CEO of Salzgitter AG. "Like us, our supplier and customer industries are facing the important tasks of establishing sustainable production and process chains. With the conclusion of this PPA, we are taking the path to climate-neutral production one step further."
"With the conclusion of this PPA, we are taking the path to climate-neutral production one step further."Gunnar Groebler, CEO of Salzgitter AG.
“Salzgitter represents the third strong partner we have now secured for our ‘He Dreiht’ offshore wind farm, which is being built without state funding,” says EnBW board member Georg Stamatelopoulos. “PPAs are a key element of the energy transition and can make a significant contribution to the rapid expansion of renewable energies. The long-term power purchase agreements secure the necessary investment while also enabling energy-intensive companies to achieve ambitious climate targets,” he explains.
Almost one year ago, EnBW signed its first PPA for “He Dreiht” with Frankfurt-based airport services business Fraport, followed more recently by another with Essen-based speciality chemical company Evonik. The supplier selection process for the main components of the project has largely been completed. The company will make the final investment decision concerning the construction of the offshore wind farm next year.
The Salzgitter Group is already a partner for the generation of renewable energies. As a full-line supplier, for example, Ilsenburger Grobblech GmbH (ILG), has been supplying heavy plate for the wind energy industry’s onshore market since 1996 and increasingly for the offshore market since 2010. Other products manufactured by the group for wind turbines include HFI longitudinally welded steel pipes, precision steel pipes for nacelles and large-diameter pipes for the substructures of offshore wind farms.