RWE and the Salzgitter Group have signed a Power Purchase Agreement (PPA) to supply up to 64 gigawatt hours (GWh) of green electricity per year from 2027.
The seven-year contract aims to support Salzgitter’s sustainability objectives by sourcing renewable energy.
The electricity will come from the Boitzenburger Land solar park in Brandenburg, Germany.
Transition to low-carbon steel production
The Salzgitter Group, through its SALCOS® (Salzgitter Low CO2 Steelmaking) program, plans to gradually convert its steel production to processes using electricity and hydrogen from 2026. The aim is to reduce CO2 emissions to virtually zero by 2033, by replacing traditional blast furnaces with direct-reduction technologies and electric-arc furnaces.
The Boitzenburger Land solar park, with a peak capacity of 180 megawatts, covers around 170 hectares, making it one of the largest photovoltaic systems in Germany. Operational since autumn 2023, it is jointly owned by Solarenergie Boitzenburger Land GmbH, the GP JOULE Group and Mainova AG, the latter being responsible for marketing the electricity.
A strategic partnership for sustainability
“We are delighted to support our long-standing customer Salzgitter in realizing its sustainability strategy,” says David Egyptien, Head of Commodity Solutions for Germany and Benelux at RWE Supply & Trading.
The demand for CO2-free electricity from renewable sources is growing strongly.
With our energy solutions, we want to promote climate protection in all sectors of the economy.
Thanks to direct marketing via PPAs, the Boitzenburger Land solar park does not require a feed-in tariff under the Renewable Energy Act (EEG).
This independence from public subsidies marks a significant step towards a self-sufficient renewable electricity market.
Long-term impact and outlook
This PPA between RWE and the Salzgitter Group illustrates a strategic partnership aimed at reducing the carbon footprint of heavy industry.
By guaranteeing a supply of green electricity, Salzgitter is laying the foundations for becoming a leader in sustainable steel production in Europe.
The collaboration between these companies underlines the importance of private initiatives in the energy transition.
It demonstrates that innovative trade agreements can accelerate the decarbonization of industrial sectors.
This partnership could serve as a model for other companies seeking to adopt more environmentally-friendly practices.
Salzgitter’s commitment to cover its energy needs entirely from renewable sources by 2030 is part of a wider trend in the steel industry worldwide to reduce the environmental impact of its operations.
