💨 Vattenfall, a leading energy company, and Salzgitter AG, a major steel producer, have entered into a power purchase agreement (PPA) to support the decarbonization of industrial production processes in Germany. The agreement will provide Salzgitter with fossil-free electricity from the Nordlicht 1 offshore wind farm, beginning in 2028. This PPA is part of a broader initiative to transform the steel industry by significantly reducing carbon emissions through the use of renewable energy.

💡 The Nordlicht 1 wind farm is currently under development in the German North Sea, approximately 85 kilometers north of the island of Borkum. The wind farm, which is expected to be operational by 2028, will feature 68 wind turbines with a total capacity of 980 megawatts. Vattenfall holds a 51% stake in the project, while BASF holds the remaining 49%. Under the terms of the agreement, Salzgitter will receive 75 megawatts of electricity from the wind farm, equivalent to around 300 gigawatt hours annually—enough to power approximately 120,000 households.

🌍 Salzgitter AG’s CEO, Gunnar Groebler, highlighted the importance of this agreement for the company's ongoing transformation towards low-CO2 steel production processes under its SALCOS® program. He stated, "Green steel needs green energy: This agreement is 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."

🌞 Martijn Hagens, a member of Vattenfall's Executive Board and Head of Markets, emphasized the company's commitment to a fossil-free future, stating, "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."

🤝 This partnership between Vattenfall and Salzgitter AG reflects a growing trend in Germany towards the use of renewable energy in heavy industry. By leveraging offshore wind power, the two companies aim to set a precedent for sustainable industrial practices and contribute to Germany's climate goals. According to the German Energy Agency (Dena), the volume of PPAs in Germany could rise to 192 terawatt hours by 2030, potentially covering a quarter of the country's total electricity demand. The secure and competitive supply of clean energy is essential for maintaining Germany's industrial competitiveness while transitioning to a low-carbon economy.