Synopsis
Salzgitter Group and Friesen Elektra have entered into a long-term agreement to supply solar power to Salzgitter's steel production facilities. The deal aligns with both companies' sustainability goals and boosts the use of renewable energy in Lower Saxony, Germany.
Article
The Salzgitter Group and Friesen Elektra have recently inked a landmark deal that will have a far-reaching impact on sustainable energy use in industrial production. The long-term power purchase agreement (PPA) involves supplying solar power from the soon-to-be-constructed Sande Hybrid Energy Park in Lower Saxony.
Olaf Lies, Lower Saxony’s Minister of Economic Affairs, praises the move as a milestone. He emphasizes how the agreement enhances the strategic role of renewable energy in the region, thereby intertwining economic interests with environmental responsibility.
The PPA is expected to provide Salzgitter Flachstahl, a part of the Salzgitter Group, with 80 megawatts of green power starting May 2024. The Sande Hybrid Energy Park is a cutting-edge project that will feature both wind turbines and photovoltaic systems, aiming to produce over 120 megawatts of renewable energy when fully operational.
Another crucial aspect of this PPA is its focus on the production of green hydrogen. Sustainably produced energy in Sande will power Salzgitter's Low CO₂ Steelmaking transformation program. Green hydrogen, sourced locally, serves as a critical ingredient in Salzgitter's journey to produce virtually carbon-neutral steel.
CEO of Salzgitter AG, Gunnar Groebler, elaborates on the significance of this partnership. According to Groebler, this PPA is more than just a business transaction; it's a major step towards achieving climate-neutral steel production. By securing a long-term source of renewable energy, Salzgitter strengthens its commitment to sustainable industrial transformation.
Friesen Elektra's Managing Director, Maximilian Graf von Wedel, views this partnership as a boost to regional value. The agreement elevates the regional green energy value chain and complements Friesen Elektra's existing efforts to produce renewable energy in Friesland for over 25 years.
The project also gains special attention from the Ministry of Economic Affairs for being a "gateway to clean energy" for Germany. It showcases how local partnerships can pave the way toward a sustainable and climate-neutral future.
Conclusion
This PPA between Salzgitter and Friesen Elektra signals more than a mere transaction. It stands as a manifesto of shared ambitions to pioneer renewable energy integration into industrial processes. Both companies are taking significant strides in shaping a more sustainable future, not just for Lower Saxony but potentially for industries worldwide.
Currency Changed: All currencies have been changed to $ for uniformity.
