To achieve its climate goals, the Salzgitter Group works closely with customers and partners, including Friesen Elektra PV I Sande GmbH & Co. KG. Salzgitter Flachstahl GmbH and Friesen Elektra have now concluded a long-term electricity supply agreement (PPA). The electricity will come from the “Hybrid Energy Park Sande”, which is currently under construction in the Friesland district in Lower Saxony.
“The long-term electricity supply agreement between Salzgitter Flachstahl and Friesen Elektra marks a milestone for the industrial location of Lower Saxony. It underlines the strategic importance of renewable energies for our location, promotes competitiveness and sends a strong signal for a sustainable future for Lower Saxony - entirely in the spirit of transformation. Such initiatives show how the economic interests of our region can be linked with responsibility for the environment,” explains Lower Saxony’s Economics Minister Olaf Lies.
Almost CO2-free steel
With this so-called Power Purchase Agreement (PPA), Salzgitter will secure the permanent supply of around 80 megawatts (MW) of green electricity from the new Sande hybrid energy park from May 2024, which is expected to go online at the beginning of 2024. The existing “Sande wind farm” is currently being expanded to generate energy from wind power and photovoltaic systems. In the final expansion stage, the Sande Hybrid Energy Park will achieve a total output of more than 120 MW.
“The partnership with Friesen Elektra is another important part of our strategic path to producing steel in Salzgitter in an almost CO2-free manner 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. With the conclusion of this new PPA, we are once again taking a big step closer to our goal of producing steel in a climate-neutral manner,” says Gunnar Groebler, CEO of Salzgitter AG.
Green hydrogen delivery
The transformation program SALCOS® - Salzgitter Low CO2 Steelmaking is further secured by the energy sustainably produced near Sande. The green electricity from the photovoltaic systems is initially part of Salzgitter Flachstahl’s normal “electricity procurement portfolio”. However, the long-term plan is to use the electricity to produce green hydrogen. At the same time, the contract includes the option to purchase hydrogen produced on site. Green hydrogen is a core element for the Salzgitter Group’s production of almost CO2-free steel.
“Our family has been producing green energy in Friesland for 25 years. The expansion of our Sande hybrid energy park and the long-term contract with Salzgitter AG brings regional value creation based on green energy to an unprecedentedly high, new level.” In addition to factors such as environmental protection and technological developments, Graf von Wedel sees solidarity with the transformation program SALCOS® primarily provides positive impulses for the local green economy. Graf von Wedel: “Reducing dependence on energy imports and fossil fuels while maintaining competitiveness and widespread availability of green energy ensures that Germany is secured and strengthened as a business location,” says Maximilian Graf von Wedel, Managing Director of Friesen Elektra Green Energy AG.
