Salzgitter to buy power from 180-MWp solar park in Germany

Salzgitter Flachstahl GmbH, a subsidiary of German steel producer Salzgitter AG (ETR:SZG), will further green its production by committing to procuring electricity from a 180-MWp solar park in the state of Brandenburg.

The company has sealed a seven-year power purchase agreement (PPA) with RWE Supply & Trading, a unit of German energy company RWE AG (ETR:RWE), the latter said on Tuesday. The offtake arrangement will benefit Salzgitter group’s largest subsidiary Salzgitter Flachstahl GmbH.

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The contract covers the supply of up to 64 GWh of green electricity annually, starting in 2027.

The power will be sourced from the Boitzenburger Land solar park, which is owned by Solarenergie Boitzenburger Land GmbH, the GP Joule Group and Mainova AG. The plant was commissioned last autumn.

Under a low-carbon transformation programme, Salzgitter Flachstahl aims to gradually convert its steel production to electricity and hydrogen-based processes from 2026. The company’s ultimate goal is to have almost completely carbon-free production from 2033.

“We are getting serious about green energy sources. By 2025, half of our electricity requirements will come from non-fossil sources, and by 2030 we want to be using 100% green electricity,” said Marco Hauer, Head of Energy Procurement at Salzgitter Flachstahl.