Iberdrola strengthens its alliance with German giant Salzgitter with a contract to supply it with 900 GWh of green electricity
Iberdrola boosts the decarbonisation of the steel sector. Europe's leading power utility has signed a 15-year long-term power purchase agreement (PPA) with German steel products manufacturer Salzgitter for more than 900 GWh at a rate of 60 GWh per year from 2025. The electricity will be 100% green and will come from Iberdrola's second PV plant in Germany, to be built in the state of Saxony-Anhalt.
The new PV project in Germany is at an advanced stage of development with a planned commissioning date next year and a maximum installed capacity of 60 megawatt peak (MWp).
Salzgitter and Iberdrola strengthen their partnership with this PPA, which is in addition to the one signed a year ago, when the two companies signed a contract for 114 megawatts (MW) of green electricity, also for 15 years, which will come from the Baltic Eagle offshore wind farm and will supply 6,500 GWh to the steel company.
Baltic Eagle is being built some 30 km northeast of the island of Rügen, will have a capacity of 476 MW and is scheduled for commissioning at the end of this year. It will provide renewable energy to 475,000 households and avoid the emission of 800,000 tonnes of CO2 into the atmosphere each year.
Iberdrola, as a world leader in supporting the decarbonisation of industry, is a pioneer in the supply of green energy solutions to industrial customers. Partnerships with leading German companies such as the Salzgitter Group are one of the keys to Iberdrola's growth strategy in the German market.
Thanks to these agreements and PPAs, Iberdrola is contributing to the decarbonisation of industry in Germany and supporting the market launch of green hydrogen. The company is working with other key players in the German economy to help them achieve their climate goals with photovoltaic and integrated cross-technology solutions, such as storage.
The aim is to secure electricity supply at competitive and stable prices for large customers committed to sustainable and environmentally friendly energy supply.
Iberdrola is the largest operator of offshore wind farms in the Baltic Sea. Wikinger has been connected to the grid since 2017, and the Baltic Eagle and Windanker farms will be commissioned in the coming years.
Leader in the PPA market
Iberdrola manages long-term power purchase agreements (PPAs) in markets such as Spain, Europe, the United Kingdom, the United States, Brazil, Mexico and Australia, from onshore wind, offshore and photovoltaic projects. The group, which began developing this type of alliance more than a decade ago, was the leader in the ranking of PPAs in Europe in 2023 with almost 1,000 MW signed in the year, according to the consultancy firm Pexapark.
Iberdrola has 100% of the energy it plans to generate this year already sold, and around 80% by 2025 and 2026, which gives the company visibility in the delivery of sustainable energy in the long term. The electricity company chaired by Ignacio Galán has partnerships with leading companies such as Amazon, Mercedes-Benz, AB InBev, Meta, Heineken, Holcim, Vodafone, Telefónica and Renault, among others.
About Salzgitter
Salzgitter is a German steel group with foreign sales last year of around 11 billion euros and a crude steel production capacity of seven million tonnes. The company has around 25,000 employees and 160 subsidiaries worldwide.
Salzgitter focuses on the innovation and sustainable transformation of its products and processes for steel production, processing and marketing. With their strategy "Salzgitter AG 2030" and the principle of "Pioneering circular solutions" they are setting new standards in the industry. Their aspirations are realised through initiatives and programmes such as SALCOS® - Salzgitter Low CO2 Steelmaking.
