Salzgitter AG (ETR:SZG) will offtake power from a 114-MW portion of Iberdrola SA’s (BME:IBE) Baltic Eagle offshore wind farm which is currently under construction in the German Baltic Sea.
The German steel producer said today that its subsidiary Salzgitter Flachstahl GmbH has signed a 15-year power purchase agreement (PPA) with the German unit of the Spanish utility.
Located some 30 km to the northeast of the island of Ruegen, the 476-MW offshore wind farm is due to become operational at the end of 2024.
The electricity from the offshore wind park will be used to produce green hydrogen, which will help Salzgitter move to carbon-neutral steel production.
“Establishing sustainable production and process chains is becoming increasingly important for us and for our suppliers and customers sectors,” said Salzgitter chief executive Gunnar Groebler.
Salzgitter will also offtake 50 MW of power from the 900-MW He Dreiht wind project in the North Sea under a deal with German electric utility EnBW Energie Baden-Wuerttemberg AG.
Meanwhile, it was recently announced that Amazon.com Inc will purchase energy from the Baltic Eagle wind farm.
