Energy company Vattenfall and steel producer Salzgitter have signed a power purchase agreement (PPA) for the supply of clean power from the Nordlicht 1 offshore wind farm for steel production from 2028.
The PPA provides for a share of 75 MW of connected load from the Nordlicht 1 offshore wind farm to be made available to the Salzgitter Group over a period of 15 years.
The Nordlicht 1 wind farm is currently being developed around 85 kilometres north of the island of Borkum.
It is due to be completed and connected to the grid in 2028. Salzgitter will then purchase around 300 gigawatt hours of electricity per year for steelmaking processes - equivalent to the annual electricity consumption of around 120,000 households.
“The electricity partnership with Salzgitter underlines our long-term strategy at Vattenfall to enable a fossil-free life not only for ourselves, but also for our suppliers, partners and customers.
"With our fossil-free electricity, we want to decarbonise entire value chains and support industry in particular on its path to green transformation,” said Martijn Hagens, responsible member of the Executive Board and Head of Markets at Vattenfall.
“With our SALCOS program, we are already in the middle of the transformation of steel production towards 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 requirements for low CO2 production. With Vattenfall, we have another powerful partner at our side and we look forward to working together,” added Gunnar Groebler, CEO of Salzgitter.
Vattenfall is building and developing the Nordlicht 1 offshore wind farm with 68 wind turbines and a total capacity of 980 MW in the German North Sea. Vattenfall holds a 51% stake in Nordlicht 1, while BASF holds the remaining 49%.
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