Energy company Vattenfall and steel producer Salzgitter have signed a new power purchase agreement (PPA) for fossil-free electricity, with the former supplying electricity from its Nordlicht 1 offshore wind farm, to be made available for steel production from 2028.
“The electricity partnership with Salzgitter underlines our long-term strategy at Vattenfall to enable a fossil-free life not only for ourselves, but also for our suppliers, partners and customers”.
Martijn Hagens, responsible member of the executive board and head of markets, Vattenfall
“The electricity partnership with Salzgitter underlines our long-term strategy at Vattenfall to enable a fossil-free life not only for ourselves, but also for our suppliers, partners and customers”, commented Martijn Hagens, responsible member of the executive board and head of markets at Vattenfall. He added: “With our fossil-free electricity, we want to decarbonize entire value chains and support industry in particular on its path to green transformation.”
''This agreement is therefore the next important step in securing our energy requirements for low CO2 production.''
Gunnar Groebler, CEO, Salzgitter AG
Gunnar Groebler, CEO of Salzgitter AG, stated: “With our SALCOS® programme, we are already in the middle of the transformation of steel production towards low-CO2 production processes, making us a leader in the steel industry. Green steel needs green energy: This agreement is therefore the next important step in securing our energy requirements for low CO2 production. With Vattenfall, we have another powerful partner at our side and we look forward to working together.”
The agreement provides for a share of 75 megawatts of connected load from the Nordlicht 1 offshore wind farm to be made available to the Salzgitter Group over a period of 15 years. The Nordlicht 1 wind farm is currently being developed around 85 kilometres north of the island of Borkum. It is due to be completed and connected to the grid in 2028. Salzgitter will then purchase around 300 gigawatt hours of electricity per year for steelmaking processes - equivalent to the annual electricity consumption of around 120,000 households.
“Fossil-free electricity from private supply contracts is highly valued by our customers. This is because it offers competitive costs and the guarantee that the electricity purchased actually comes from renewable sources - including proof of the type and location of green electricity generation”, Hagens concluded.