Salzgitter Flachstahl GmbH (SZFG) has signed a long-term power purchase agreement (PPA) to enable green steel production with the production division of Octopus Energy, which manages a portfolio of green energy projects worth €7 billion.
The PPA, signed with the support of Pexapark's consulting team, provides for the supply of 126,000 MWh of electricity to Salzgitter Flachstahl over ten years from Octopus' Schiebsdorf solar park, which will be generated at the solar park in Brandenburg. The project, which is scheduled to start this year, will ensure the supply of renewable electricity for Salzgitter Flachstahl and at the same time provide protection against rising electricity costs as well as support its goal of producing "green steel".
Ralph Schaper, Head of Energy Management at Salzgitter, commented: "Our strategic goal is to reduce CO2 emissions. This latest PPA opens up another important source of clean energy for us, including green hydrogen production and CO2-reduced steel production for our customers. Octopus is another long-term partner for us," the company was reported as stating.
The agreement coincides with Octopus ramping up its green energy activities in Germany and involves investing more than €1 billion in clean energy infrastructure in Germany until 2027.
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