(Salzgitter) – Salzgitter Flachstahl GmbH and Friesen Elektra have concluded a long-term electricity supply agreement (Power Purchase Agreement, PPA). This means that the Lower Saxony steel company will be able to purchase green electricity from the “Sande Hybrid Energy Park” on the Jade-Ems Canal in northern Germany from May 2024. The PV system as an electricity supplier with an installed capacity of initially 80 megawatts - later it will be 120 megawatts - will go online at the beginning of 2024.
In the future, Salzgitter will purchase green electricity from Friesen Elektra (from left): Gunnar Groebler, CEO of Salzgitter AG; Maximillian Graf von Wedel, Frisian Elektra; Olaf Lies, Minister of Economic Affairs for Lower Saxony © Salzgitter AG
“The long-term electricity supply agreement between Salzgitter Flachstahl and Friesen Elektra marks a milestone for the industrial location of Lower Saxony,” says Lower Saxony’s Economics Minister Olaf Lies. This underlines “the strategic importance of renewable energies for our location” and promotes competitiveness.
The Frisian GP Joule GmbH is responsible for the engineering services, planning and procurement (EPC) for the solar park. Olaf Lies carried out the groundbreaking ceremony in May of this year. At the time, a statement from GP Joule said that the approximately 150.000 modules would supply around 85.000 megawatt hours of electricity per year. Friesen Elektra will, among other things, produce green hydrogen and supply a hydrogen filling station in nearby Schortens. It is not stated how high the share of electricity that Salzgitter AG is now purchasing is.
Solar power for almost CO2-free steel
The group explained that the green electricity from the photovoltaic system is initially part of Salzgitter Flachstahl’s normal “electricity procurement portfolio”. In the long term, the 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. Salzgitter AG wants to do so as part of its... “Salcos” (Salzgitter Low CO2 Steelmaking) will produce steel with hydrogen instead of coke as before, which will significantly reduce greenhouse gas emissions.
“The partnership with Friesen Elektra is another important part of our strategic path to producing steel in Salzgitter almost CO2-free in the future,” says Gunnar Groebler, CEO of Salzgitter AG. “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.”
Friesen Elektra Green Energy AG is a medium-sized family business that is part of a group of companies based at Gödens Castle in the Friesland district of Lower Saxony and is managed by managing director Maximilian Graf von Wedel. A two gigawatt electrolysis project is scheduled to be completed by 2030.
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Friesen Elektra supplies green electricity to Salzgitter. © Friesen Elektra Green Energy AG
