Baltic offshore wind power from Iberdrola 'big step towards climate-neutral steel'
Electricity through PPA from Baltic Eagle wind farm to reduce CO2 emissions at Saarland-based steel mills
German steel maker Stahl Holding Saar will buy some 200GWh of electricity per year from Iberdrola’s Baltic Eagle offshore wind farm through a 15-year power purchase agreement (PPA).
The agreement’s energy output is equivalent to about 50MW of the wind capacity from the 476MW project that the Spanish renewables giant is slated to commissioned at the end of 2024.
The offtake deal will enable the Saarland-based steel holding to transform the business activities of its Saarstahl and Dillinger companies while reducing its own steel production CO2 emissions in the future, Iberdrola said.
"With the conclusion of this PPA, we are taking a big step towards our goal of climate-neutral steel production,” SHS chairman Karl-Ulrich Köhler said.
“Our cooperation with Iberdrola helps us to secure renewable electricity for the transformation process of our companies Saarstahl and Dillinger.
“Currently, our production is still based on classic blast furnace technology.”
The company from 2030 onwards intends to produce 3.5 million tonnes of steel with lower emissions, representing 70% of its total output.
Iberdrola German CEO Felipe Montero added: “As part of our growth in the strategic German market we are paying particular attention to partnering with energy-intensive companies.
“In doing so, we are contributing to the sustainable transformation of the economy."
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