Salzgitter AG and Friesen Elektra have concluded a long-term power purchase agreement (PPA). From May 2024, Salzgitter will purchase around 80 MW of green electricity from the Sande Hybrid Energy Park in Friesland. The electricity will be used for the production of green SALCOS steel and, in the long term, for hydrogen production.
Through the so-called Power Purchase Agreement with Friesen Elektra PV I Sande GmbH & Co. KG, Salzgitter Flachstahl will secure the long-term supply of around 80 MW of green electricity from the new “Hybrid Energy Park Sande” from May 2024, which is expected to be connected to the grid at the beginning of 2024.
The green electricity is intended to further secure the SALCOS® – Salzgitter Low CO2 Steelmaking transformation program. Initially, it will be part of the normal “electricity procurement portfolio”. The long-term plan is to use the electricity for the production of green hydrogen. At the same time, the contract includes the option to purchase hydrogen produced by Friesen Elektra. Green hydrogen is a core element in the Salzgitter Group’s production of virtually CO2-free steel.
Gunnar Groebler, CEO of Salzgitter AG, comments: “The partnership with Friesen Elektra is another important part of our strategic path to producing steel in Salzgitter almost CO2-free in the future. The implementation of sustainable steel and energy production is becoming increasingly important not only for us, but also for our suppliers and customers.
The conclusion of this new PPA brings us another big step closer to our goal of producing steel in a climate-neutral way.”
Regional value creation
In the final expansion stage, the Sande Hybrid Energy Park is set to achieve a total output of more than 120 MW. The conversion of the existing “Windpark Sande” to generate energy from wind power and photovoltaics is currently underway. The company has been producing renewable energy from a wind farm in northern Germany since 1999. The completion of a 2 GW electrolyser for green hydrogen is now also planned by 2030.
In addition to factors such as environmental protection and technological developments, Maximilian Graf von Wedel, Managing Director of Friesen Elektra Green Energy AG, sees the collaboration with the SALCOS® transformation program as providing positive impetus for the local green economy:
“The expansion of our Hybrid Energy Park Sande and the long-term contract with Salzgitter AG will take regional value creation based on green energy to an unprecedented new level.
Reducing dependence on energy imports and fossil fuels, while at the same time ensuring competitiveness and the widespread availability of green energy, will secure and strengthen Germany as a business location.”