Vattenfall and steel producer Salzgitter have signed a power purchase agreement (PPA) for output from the 980MW Nordlicht 1 offshore wind farm in the German North Sea.
The PPA will commence from 2028 and will enable decarbonisation of Salzgitter’s steel production.
The PPA provides for a share of 75MW of connected load from Nordlicht 1 for a period of 15 years, equivalent to 300 gigawatt hours of electricity annually for steelmaking processes.
“The electricity partnership with Salzgitter underlines our long-term strategy at Vattenfall to enable a fossil-free life not only for ourselves, but also for our suppliers, partners and customers”, said Martijn Hagens, responsible member of the Executive Board and Head of Markets at Vattenfall.
He added: “With our fossil-free electricity, we want to decarbonise entire value chains and support industry in particular on its path to green transformation.”
Gunnar Groebler, CEO of Salzgitter, said: “With our SALCOS® program, we are already in the middle of the transformation of steel production towards low-CO2 production processes, making us a leader in the steel industry.
“Green steel needs green energy: This agreement is therefore the next important step in securing our energy requirements for low CO2 production.
“With Vattenfall, we have another powerful partner at our side and we look forward to working together.”