Iberdrola Deutschland and Stahl Holding Saar (SHS) have concluded a long-term power supply agreement (PPA), covering 50MW of capacity from the Baltic Eagle offshore wind farm.
The cooperation between the two companies is set for 15 years and covers an annual consumption of 200GWh.
The PPA will enable SHS to sustainably transform the business activities of its Saarstahl and Dillinger companies while reducing its own steel production CO2 emissions in the future.
In addition to this long-term partnership, other opportunities for cooperation are being explored, such as on-site renewable energy and the production of green hydrogen.
The 476MW Baltic Eagle offshore wind farm is the second of three large-scale Iberdrola projects in Germany, alongside the Wikinger and Windanker wind farms.
Baltic Eagle will be commissioned at the end of 2024.
“We are very pleased to support SHS in its ambitious climate goals,” said Felipe Montero, CEO of Iberdrola Germany.
“As part of our growth in the strategic German market we are paying particular attention to partnering with energy-intensive companies.
“In doing so, we are contributing to the sustainable transformation of the economy.”
Karl-Ulrich Köhler, Chairman of the Management Board of SHS and Chairman of the Management Boards of Dillinger and Saarstahl, said: “Our cooperation with Iberdrola helps us to secure renewable electricity for the transformation process of our companies Saarstahl and Dillinger.
“Currently, our production is still based on classic blast furnace technology.
“From 2030 onwards, we want to produce 3.5 million tonnes, about 70% of our steel, with lower emissions, and by 2045 we want to achieve production that is as CO2-neutral as possible.”