Friesen Elektra signs solar PPA with steel maker Salzgitter

Friesen Elektra Green Energy AG has signed a deal to supply solar power to German steel maker Salzgitter AG (ETR:SZG) from a wind-solar hybrid site under development in Lower Saxony.

The long-term power purchase agreement (PPA) provides for a permanent supply of around 80 MW of green electricity from the new Sande Hybrid Energy Park, starting in May 2024, Salzgitter said on Thursday.

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

The Sande Hybrid Energy Park already includes the Sande Wind Farm and is currently being expanded to house a ground-mounted solar power generating capacity. Upon completion, expected early next year, the hybrid system will have an overall capacity of more than 120 MW.

Salzgitter’s long-term plan for virtually carbon-neutral steel production envisages the use of green hydrogen. Thus, the agreement also includes the option to procure hydrogen produced locally.

In May, Salzgitter inked a pact with German energy company EWE to offtake green hydrogen to support the decarbonisation of steel production.