Germany's Salzgitter to buy more renewable power from Iberdrola

Salzgitter Flachstahl GmbH, a subsidiary of German steel producer Salzgitter AG (ETR:SZG), has agreed to source even more renewable energy from the local unit of Spain’s Iberdrola SA (BME:IBE).

The company announced on Tuesday that it signed a 15-year power purchase agreement (PPA) with Iberdrola Deutschland tied to the latter’s second large-scale solar park in Germany – a 60-MWp project in Saxony-Anhalt that is already at an advanced stage of development and is planned to be commissioned in 2025.

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Under the terms of the new contract, Salzgitter Flachstahl will buy around 60 GWh of solar power annually, or 900 GWh over the entire 15-year period.

A year ago, the two companies signed a similar deal for a 114-MW portion of the 476-MW Baltic Eagle offshore wind project in the Baltic Sea.

Meanwhile, Salzgitter has also agreed to purchase green hydrogen from Uniper SE to support its planned production of almost carbon dioxide-neutral steel, as announced last week.