German steelmaker Salzgitter Flachstahl and energy supplier Friesen Elektra have signed a long-term solar power purchase agreement to enable hydrogen-fuelled green steel production.
The power is to be sourced from the ‘Sande Hybrid Energy Park’ that is currently being built in Friesland, Lower Saxony, Germany.
As from May 2024, a permanent supply of around 80 megawatts (MW) of green electricity from the new Sande Hybrid Energy Park that is already scheduled to go online at the start of 2024 has been secured under the PPA for Salzgitter Flachstahl. The already existing Sande Wind Farm is currently being expanded with the aim of sourcing energy from wind turbines and photovoltaic systems. In the final stage of construction, the Sande Hybrid Energy Park will deliver an overall output in excess of 120 MW.
‘‘The long-term PPA between Salzgitter Flachstahl and Friesen Elektra marks a milestone for the industrial location of Lower Saxony.''
Olaf Lies, Lower Saxony’s minister of economic affairs
Olaf Lies, Lower Saxony’s minister of economic affairs, stated; ‘‘The long-term PPA between Salzgitter Flachstahl and Friesen Elektra marks a milestone for the industrial location of Lower Saxony. The agreement underscores the strategic importance of renewable energies for our location, promotes competitiveness, while sending a strong signal for Lower Saxony’s sustainable future – fully in line with the ongoing transformation. Initiatives like these demonstrate how the economic interests of our region can be intertwined with responsibility for the environment.”
The plan aims at harnessing the power for the production of green hydrogen, as well as securing the option of procuring hydrogen produced locally.
''The partnership with Friesen Elektra constitutes another key element of our strategic journey toward producing virtually carbon neutral steel in Salzgitter.''
Gunnar Groebler, chief executive officer of Salzgitter AG
Gunnar Groebler, chief executive officer of Salzgitter AG, said: ‘‘The partnership with Friesen Elektra constitutes another key element of our strategic journey toward producing virtually carbon neutral steel in Salzgitter. Implementing sustainable steel along with energy production is becoming increasingly important not only for us, but also for our suppliers and customers. By concluding this new PPA, we have taken another major step toward our goal of producing climate neutral steel.”
Source: Hydrogen Central