Iberdrola signs an agreement to supply offshore wind power to German steelmaker SHS

Iberdrola Deutschland and Stahl Holding Saar (SHS) have signed a 15-year long-term power purchase agreement (PPA) covering an annual consumption of 200 GWh. The green power output of the agreement is equivalent to around 50 MW of offshore wind capacity, which will be supplied by Iberdrola's Baltic Eagle offshore wind project under construction in the Baltic Sea. 

The clean energy to be provided by Iberdrola will enable SHS to sustainably transform the business activities of its Saarstahl and Dillinger companies and reduce its own CO2 emissions from steel production in the future. This is the first of several PPAs planned by the two companies in the coming years. 

With this PPA, Iberdrola and SHS underpin their respective strategies to actively promote the energy transition in Germany. In addition to this long-term partnership, both companies are exploring other cooperation opportunities, such as on-site renewable energy and green hydrogen production. 

The Baltic Eagle offshore wind farm is the second of Iberdrola's three major projects in Germany, along with the Wikinger and Windanker wind farms. Baltic Eagle will be operational by the end of 2024 with a total capacity of 476 megawatts, enough to supply 475,000 households with green energy and save 800,000 tonnes of CO2 per year. 

Iberdrola, as part of its growth in the strategic German market, is paying special attention to partnering with energy-intensive companies. In doing so, the utility is contributing to the sustainable transformation of the economy. 

"With the signing of this PPA, we are taking a big step towards our goal of climate-neutral steel production. Our cooperation with Iberdrola helps us to secure renewable electricity for the transformation process of our companies Saarstahl and Dillinger. At present, our production is still based on classic blast furnace technology. From 2030 onwards, we want to produce 3.5 million tonnes, approximately 70% of our steel, with lower emissions, and by 2045 we want to achieve the most CO2-neutral production possible," says Karl-Ulrich Köhler, Chairman of the Board of SHS and Chairman of the Boards of Dillinger and Saarstahl. 

Europe's largest and the world's second-largest electricity company also has PPA partnerships with Amazon, Telefónica, Mercadona, Holcim, Vodafone, Heineken, ABInBev and Renault. In fact, in recent weeks Iberdrola has also closed a PPA with the Salzgitter Group to provide energy through its Baltic Eagle offshore wind farm in Germany.