The steel and technology group Salzgitter AG and the Swedish energy company Vattenfall are forging ahead with their common goal of decarbonizing industrial production processes. A new power partnership ("Power Purchase Agreement", PPA) envisages that from 2028 fossil-free electricity from the Nordlicht 1 offshore wind farm will be available for steel production.

Gunnar Groebler, Chief Executive Officer of Salzgitter AG, outlines the idea behind it: "With our SALCOS program, we are already in the midst of transforming steel production to achieve low CO2 production processes, making us a leader in the steel industry. Green steel needs green energy: This agreement is therefore the next important step in securing our energy needs for low-CO2 production. With Vattenfall, we have another strong partner at our side and we look forward to working together."

Martijn Hagens, the responsible member of the board and head of the Markets division at Vattenfall, emphasizes in this context: "The electricity partnership with Salzgitter AG underscores our long-term strategy at Vattenfall of enabling not only ourselves, but also our suppliers, partners and customers, to live fossil-free. We want to decarbonize entire value chains with our fossil-free electricity and, in particular, support industry on its path to green transformation."

The agreement – a so-called Power Purchase Agreement (PPA) – provides for the Salzgitter Group to be supplied with a 75 megawatt connection capacity from the Nordlicht 1 offshore wind farm over a period of 15 years. The Nordlicht 1 wind farm is currently being developed around 85 kilometers north of the island of Borkum. It is scheduled for completion and connection to the grid in 2028. The Salzgitter Group will then receive around 300 gigawatt hours of electricity per year for steel production – which is equivalent to the annual electricity consumption of around 120,000 households.

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