Salzgitter strikes PPA with Vattenfall for portion of Nordlicht 1

German steel producer Salzgitter AG (ETR:SZG) has signed a 15-year power purchase agreement (PPA) with Vattenfall AB for a 75-MW share of the connected load from the 980-MW Nordlicht 1 offshore wind farm in the North Sea.

The two companies announced their deal on Thursday, saying that the contracted electricity supply (300 GWh a year) will be available for steel production from 2028 when the 68-turbine wind park is expected to be connected to the grid. Vattenfall is currently developing Nordlicht 1 around 85 kilometres north of the island of Borkum. The Swedish electric utility owns a 51% stake in the project, while German chemicals group BASF SE has a 49% interest.

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“With our SALCOS program, 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,” said Gunnar Groebler, CEO of Salzgitter AG.

Earlier this month, Salzgitter also unveiled that a subsidiary had committed to procuring electricity from a 180-MWp solar park in the state of Brandenburg.