Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, and Zelestra have signed Germany’s largest hybrid solar-plus-energy-storage power purchase agreement (PPA), supporting the supply of renewable electricity for low-carbon steel production.
Under the long-term agreement, Zelestra will build, own and operate two hybrid plants with directly connected battery storage systems in Brandenburg and Thuringia. Salzgitter will purchase a combined 147 MW of solar power, equivalent to 158 GWh per year, and control the operation of the battery systems.
The batteries will be charged exclusively with surplus solar power, allowing Salzgitter to better align renewable electricity supply with its industrial consumption while increasing flexibility in power procurement.
The agreement is the first hybrid PPA in Germany for both companies and marks Salzgitter’s first operation of a battery storage system. It will support the company’s growing green electricity requirements under its SALCOS steel transformation programme.
Salzgitter AG is one of Germany’s leading steel firm, producing flat and long steel products, tubes and engineered solutions for the automotive, construction, energy and industrial sectors.