Salzgitter AG signs Germany’s largest solar-plus-storage PPA

Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, has signed Germany’s largest hybrid solar-plus-storage power purchase agreement (PPA) with developer Zelestra. The long-term deal involves two hybrid plants located in Brandenburg and Thuringia, which are scheduled to begin supplying electricity in 2027.

The agreement provides 147 megawatts of solar power and 158 gigawatt-hours of electricity annually. A key feature of the contract is the inclusion of 79 megawatts of battery storage, which will be charged exclusively with surplus solar energy. This marks the first time a German steel manufacturer will directly control the operation of battery storage to manage energy supply and increase grid flexibility.

This energy procurement is a critical component of the SALCOS program, a multi-billion euro transformation project aimed at shifting Salzgitter’s production from coal-based processes to hydrogen-based and electric steelmaking. By utilizing green hydrogen and electric arc furnaces, the company aims to decarbonize its steel production processes.