Salzgitter Flachstahl GmbH has inked a 10-year power purchase deal with IG Merbitz Solar GmbH in order to support its decarbonization efforts, according to the statement released by the parent company, Germany-based steelmaker Salzgitter AG.
As part of the deal, which will start from January 2025, IG Merbitz will provide around 71 MWh of green power per year at a fixed price to Salzgitter. The electricity will be generated in a ground-mounted photovoltaic system that is constructed by IG Merbitz in Saxony-Anhalt. In addition, Salzgitter has the option to temporarily store electricity on the site in question.
“The electricity supply agreement now concluded between our two companies underlines the importance of renewable energies for the energy transition in Germany and for the Salzgitter site – where virtually carbon-free steel will be produced from 2026 onwards,” Ralph Schaper, head of energy management at Salzgitter Flachstahl GmbH, stated.
As SteelOrbis reported previously, the German company also signed a similar agreement with UK-based Octopus Energy to supply clean electricity with the intention of produce green steel.