RWE and Salzgitter Group sign green Power Purchase Agreement

RWE Supply & Trading and the Salzgitter Group have agreed a long-term green electricity supply (Power Purchase Agreement, PPA) for up to 64 gigawatt hours per year. The contract runs for seven years and begins in 2027. The green electricity will come from the 180-megawatt peak Boitzenburger Land solar park in Brandenburg. Covering an area of around 170 hectares, it is one of the largest PV systems in Germany. The park has been in operation since autumn 2023 and is jointly owned by Solarenergie Boitzenburger Land GmbH, the GP JOULE Group and Mainova AG; the latter is responsible for marketing the electricity. Due to direct marketing via PPAs, the solar park does not require a feed-in tariff under the Renewable Energy Sources Act.

With the SALCOS® - Salzgitter Low CO2 Steelmaking transformation programme, the Salzgitter Flachstahl GmbH, the largest company in the Salzgitter Group, will gradually convert its steel production to electricity and hydrogen-based processes from 2026. The aim is to achieve almost completely CO2-free production from 2033, replacing the traditional blast furnace route with production processes using direct reduction and electric arc furnaces.

We are delighted to be able to support our long-standing customer Salzgitter in realising its sustainability strategy," says David Egyptien, Head of Commodity Solutions Germany & Benelux at RWE Supply & Trading. "The demand for CO2-free electricity supplies from renewable sources is growing strongly. With our energy solutions, we want to promote climate protection in all areas of the economy."

Marco Hauer, Head of Energy Procurement at Salzgitter Flachstahl GmbH: "Large quantities of greenhouse gases are currently still being released during conventional steel production. That is why we are driving forward the switch to a virtually CO2-free steel production process on a large scale. 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."

Source and Photo: Salzgitter