Energiekontor and Salzgitter Flachstahl have concluded power purchase agreements (PPAs) for two solar projects in Germany.
The schemes in Mecklenburg-Western Pomerania have a total capacity of 113MW.
Both PPAs are for 15 years and cover the annual supply by Energiekontor of 120GWh to Salzgitter Flachstahl.
According to the plans, Energiekontor will add the two projects, now ready for construction, to its own portfolio after commissioning.
Energiekontor received building permits for the two solar park schemes in Mecklenburg-Western Pomerania in the 2023 financial year, with both recently reaching financial closing.
Construction work can begin now that the projects have been credit-validated and commissioning is planned for mid-2026.
The contracts were concluded in cooperation with Pexapark.
Through its SALCOS (Salzgitter Low CO2 Steelmaking) transformation programme, Salzgitter will use the solar electricity in the production of hydrogen which will replace coal used in the conventional blast furnace process.
Instead of carbon dioxide, water is emitted, which can be fed back into the process.
“We are proud to be able to contribute to the industrial transformation in Germany by supplying our electricity from renewable energies,” says Energiekontor chief executive Peter Szabo.
He added: “Strong partnerships like the one between Salzgitter Flachstahl, which is one of the leading manufacturers of high-quality steel products, and us, an independent energy supplier, make the energy transition possible in the first place.
“At the same time, the realisation and technological diversification of our own project pipeline is gaining further momentum, free of state subsidies – an important aim for us.”