Salzgitter and Zelestra Sign Green Energy Supply Contract
Salzgitter Flachstahl and Zelestra have signed Germany’s largest hybrid solar-plus-storage power supply agreement, covering two projects to support green steel production.
Zelestra will build, own and operate two new hybrid plants, each with directly connected battery storage systems, in Brandenburg and Thuringia.
Salzgitter will purchase 147MW or 158GWh/year of solar power from both plants and control the operation of the battery storage system.
Marco Hauer, head of group energy procurement at Salzgitter Flachstahl, said: “The combination of solar energy and battery storage opens up the opportunity for us to procure renewable energy for our industrial processes in line with demand and at competitive conditions.
“The agreement supports our ambitious decarbonization of steel production and helps to secure the competitiveness of the Salzgitter site. We are pleased to have Zelestra at our side, a proficient and experienced business partner who is successfully putting innovative and CO2-free energy solutions into practice.”
It is the first power supply agreement in the German market for both partners, and sees Salzgitter own a battery storage system for the first time.
The battery storage systems are charged exclusively with surplus solar power from the plants.
Mathias Künicke, CEO of Zelestra in Germany, said: "This is an innovative agreement between two forward-thinking companies with a shared focus on decarbonization. As the largest hybrid deal in Germany to date, it shows real ambition from both parties, and we expect this segment of the market to grow considerably in the months ahead.
“It builds on the hybrid expertise we've developed across other European markets, and we're proud to work alongside Salzgitter as they take an important step towards commercial green steel production."