Salzgitter signs agreement with Octopus to supply green electricity

German steelmaker Salzgitter Flachstahl, a subsidiary of Salzgitter AG, has signed a 10-year power purchase agreement (PPA) with the UK’s Octopus Energy Generation. This is stated in the message of Salzgitter.

The agreement was concluded with the support of Pexapark consultants. The metallurgical company will receive 126 GWh of clean energy per year generated at the Octopus solar power plant in Schibsdorf (Bradenburg). The electricity generated by the project will directly support the Salzgitter Group’s future production of clean steel as part of its innovative SALCOS program.

«As we work to achieve our strategic goal of reducing emissions, this PPA adds another important source of clean electricity to power our operations, create clean hydrogen and ultimately produce greener steel for our customers. Octopus, which has extensive experience in renewable energy in Europe, is an ideal long-term partner for us,» said Ralf Schaper, Head of Energy Economics at Salzgitter.

Octopus, which is one of the largest renewable energy investors in Europe and manages a €7 billion portfolio, acquired the Schibsdorf solar power plant in January this year on behalf of the Sky fund (ORI SCSp), which it manages. The plant is currently under construction and is due to be commissioned at the end of 2024. It is the largest solar power plant in the company’s growing portfolio of renewable energy projects in Germany and globally.

The agreement comes as Octopus is stepping up its green energy activities in Germany. The company plans to invest more than €1 billion in the country’s clean energy infrastructure by 2027.

As GMK Center reported earlier, German companies Thyssenkrupp Steel and RWE signed a long-term power purchase agreement (PPA) to supply green electricity to the direct reduction plant in Duisburg, which will be equipped with electrically driven melting furnaces.