Vattenfall offshore wind project to power Salzgitter green steel production in Germany
Nordlicht array in the German North Sea is already slated to supply BASF chemicals complex
Vattenfall will supply part of the output of its near-gigawatt Nordlicht 1 wind project to German metals giant Salzgitter for the production of low emission green steel.
The Swedish utility under a power purchase agreement (PPA) from 2028 on will deliver the power output of 75MW to Salzgitter – the equivalent of 300GWh per year – for a 15-year period. The Nordlicht wind farm has a total capacity of 980MW.
“We want to use our fossil-free electricity to decarbonise entire value chains and, in particular, support industry on its path to green transformation,” said Vattenfall board member Martijn Hagens, who is responsible for markets.
“Green steel needs green energy: This agreement is therefore the next important step in securing our energy needs for low-CO2 production.”
When starting regular offshore wind tenders in 2021, Germany introduced a legal entry right for companies that had spent large sums developing an area but failed to secure offtake in auctions designed for pre-developed zones.
Nordlicht 1 is located 85km north of the German island of Borkum and slated to be grid-connected in 2028.
“Fossil-free electricity from private supply contracts is highly valued by our customers,” Hagens added.
“This is because it offers competitive costs and the guarantee that the electricity purchased actually comes from renewable sources - including proof of the type and location of green electricity generation”, explains Hagens.”
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