GMH and ENGIE sign power purchase agreement for renewable energy supply

The GMH Group and ENGIE have entered into a Power Purchase Agreement (PPA) aimed at providing renewable energy with certificates of origin to power GMH's inductive single-bar treatment facility (EVA) at their Georgsmarienhütte site. The agreement ensures that the facility will operate entirely on renewable energy. The electricity will be sourced from two domestic energy plants, including a wind farm no longer subsidized under Germany's Renewable Energy Act (EEG) and a newly constructed solar park.

For the GMH Group, this PPA marks a key milestone in its ongoing efforts to transition towards climate-neutral steel production. The EVA facility’s shift from natural gas to electricity in heat treatment is expected to save over 10,000 tons of CO2 emissions in the next decade. The company aims to reduce its carbon emissions to near zero by 2039, with an interim goal of halving greenhouse gas emissions by 2030 compared to 2019 levels.

“Through our cooperation with ENGIE for coupled electricity supply, we’ve taken the final critical step to operate our single-bar treatment facility in a fully sustainable manner. The steel processing on the electrically operated EVA is not only more efficient and powerful but also runs on 100% green electricity,” said Matthias Funke, Director of Commodity Management at GMH Group.

The move is seen as part of GMH’s broader strategy to modernize its steel production processes. Marc Oliver Arnold, Plant Director at Georgsmarienhütte, highlighted the importance of this step, stating, “We are excited to now be able to make another significant part of our operations climate-friendly, alongside the fully electric melting of steel. This is another important stride towards achieving our climate goals.”

ENGIE, a global leader in Power Purchase Agreements, is supporting companies like GMH on their path to decarbonization. "Our goal is to make renewable energy accessible to businesses. We are delighted to assist the GMH Group in its decarbonization journey. By combining a wind farm no longer eligible for EEG subsidies with a new solar park, this PPA also helps keep essential wind turbines online while promoting the construction of new renewable energy facilities,” said Philip Meissner, Senior Originator at ENGIE Energy Management Solutions.

ENGIE is one of the leading portfolio owners of post-EEG plants in Germany and is actively engaged in expanding renewable energy capacity across the country.

Source and Photo: GMH Group