Iberdrola Deutschland and Salzgitter Flachstahl have concluded a further solar power purchase agreement (PPA).
From 2025, Iberdrola Deutschland will supply Salzgitter Flachstahl with around 60 gigawatt hours (GWh) of electricity per year generated by a 60MW solar plant in Germany.
The array will be built in Saxony-Anhalt and is already at an advanced stage of development.
The new PPA, which has a 15-year term, expands the companies’ partnership where Iberdrola will supply Salzgitter Flachstahl from its Baltic Eagle offshore wind farm in future.
The deals show renewable energy assets can ensure the supply of electricity at competitive and stable prices for large commercial customers who are committed to an environmentally friendly and sustainable energy supply, said Iberdrola.
Salzgitter Flachstahl chief executive Ulrich Grethe said: “Establishing sustainable production and process chains is becoming increasingly important for us and our supplier and customer industries.
“By concluding this new power purchase agreement, we are taking a major step towards climate-neutral production.”
Iberdrola Deutschland chief executive Felipe Montero added: “By entering into strong partnerships with industry leaders such as Salzgitter Flachstahl, we are taking another important step in our integrated growth strategy, particularly in the onshore business.
“Through long-term PPAs, we want to realise projects that actively contribute to the green transformation of German industry.
“At the same time, we are also supporting other key players with market-based solutions to help them achieve their climate targets.”