German energy company EnBW has signed a long-term electricity supply contract with the steel producer Salzgitter Flachstahl GmbH for 50 MW of electricity to come from the He Dreiht offshore wind farm in the North Sea.
With this power purchase agreement (PPA), Salzgitter Flachstahl GmbH secures the supply of green electricity for 15 years from the new 900 MW wind farm located around 90 kilometers north of the island of Borkum, which is scheduled to be commissioned at the end of 2025.
This will further safeguard the transformation project known as SALCOS® – Salzgitter Low CO2 Steelmaking.
Producing green hydrogen using sustainably generated energy is a core element in the production of virtually carbon-free steel, EnBW said.
Almost one year ago, EnBW signed the first PPA for He Dreiht with Fraport, followed more recently by another one with Evonik.
”Salzgitter represents the third strong partner we have secured for our offshore wind farm ‘He Dreiht’ , which is realised without subsidies,” said EnBW board member Georg Stamatelopoulos.
”PPAs are a key element of the energy transition and can make a significant contribution to the fast expansion of renewable energies. Long-term PPAs secure the necessary investment while also enabling energy-intensive companies to achieve ambitious climate targets.”
The supplier selection process for the main components of the He Dreiht project has largely been completed, EnBW said.
The company will take the final investment decision concerning the construction of the offshore wind farm next year.
The subsidy-free He Dreiht will comprise 64 Vestas V236-15.0 MW wind turbines scheduled to start operating at the end of 2025.
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