Energiekontor AG (“Energiekontor”), one of Germany’s leading project developers and operators of wind and solar parks based in Bremen and listed in the General Standard, and Salzgitter Flachstahl GmbH have concluded their first long-term power supply contracts for two solar park projects in Mecklenburg-Western Pomerania. According to the plans, Energiekontor will add the two projects to its own portfolio after commissioning. The projects recently became ready for construction.
Energiekontor received building permits for the two solar park projects in Mecklenburg-Western Pomerania in the 2023 financial year, with both recently reaching financial closing. Construction work can begin now that the projects have been credit-validated. Two solar parks with a total generation capacity of around 113 megawatt peak are to be built at the sites. Commissioning is currently planned for mid-2026.
Against this backdrop, Energiekontor and Salzgitter Flachstahl GmbH have concluded initial long-term power purchase agreements (PPAs) over 15 years for both projects. Once the plants are commissioned, Energiekontor will supply Salzgitter Flachstahl GmbH with more than 120 gigawatt hours of green electricity a year – enough to save almost 84,000 tonnes of CO2 a year in purely mathematical terms.
The contracts concluded in cooperation with Pexapark for the long-term provision of renewably generated power ensure a high level of planning security on both sides. The energy partnership also supports the decarbonisation of heavy industry in Germany, which is a key sector for achieving climate targets. Through its SALCOS® (Salzgitter Low CO2 Steelmaking) transformation programme, the Salzgitter Group has taken a major step towards climate-neutral steel production. As part of the plans, green electricity will be used in the production of hydrogen. The hydrogen produced will then replace the coal used in the conventional blast furnace process. Instead of CO2, water is emitted, which can be fed back into the process. Overall, the Salzgitter Group aims to reduce its CO2 emissions by 95 percent.
“We are proud to be able to contribute to the industrial transformation in Germany by supplying our electricity from renewable energies,” says Peter Szabo, CEO of Energiekontor AG. “Strong partnerships like the one between Salzgitter Flachstahl GmbH, which is one of the leading manufacturers of high-quality steel products, and us, an independent energy supplier, make the energy transition possible in the first place. At the same time, the realisation and technological diversification of our own project pipeline is gaining further momentum, free of state subsidies – an important aim for us.”
Ralph Schaper, Head of Energy Management at Salzgitter Flachstahl GmbH, adds: “With the conclusion of these two photovoltaic PPAs, we have taken another great step towards securing our targeted green electricity portfolio in the long term and diversifying our suppliers. The contract negotiations with Energiekontor give reason to hope for a cooperative partnership over the next 15 years. In addition to competitive terms, this is another very important point in view of the highly volatile market environment and increasingly scarce human resources.”
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