RWE Supply & Trading and the Salzgitter Group have solidified a long-term agreement for the supply of green electricity.
The power purchase agreement (PPA) stipulates the delivery of up to 64 gigawatt-hours (GWh) of renewable energy annually. This seven-year contract will commence in 2027.
Power Source: Boitzenburger Land Solar Park
The green electricity procured under this agreement will be sourced from the Boitzenburger Land solar park located in Brandenburg, Germany.
Encompassing approximately 170 hectares, this solar park is one of the largest photovoltaic systems in the country, boasting a peak capacity of 180 megawatts (MW).
Operational since autumn 2023, it is co-owned by Solarenergie Boitzenburger Land GmbH, the GP JOULE Group, and Mainova AG, with the latter responsible for electricity marketing.
This direct PPA model eliminates the need for feed-in tariffs under the Renewable Energy Sources Act.
Green Energy for Sustainable Steel Production
Salzgitter Flachstahl GmbH, the largest entity within the Salzgitter Group, is spearheading a transformative initiative known as SALCOS® – Salzgitter Low CO2 Steelmaking.
Starting in 2026, the company will progressively transition its steel production processes to rely on electricity and hydrogen.
This ambitious program aims to achieve near CO2-free steel production by 2033, replacing the conventional blast furnace route with innovative processes utilizing direct reduction and electric arc furnaces.
RWE’s Commitment to Green Growth
David Egyptien, Head of Commodity Solutions Germany & Benelux at RWE Supply & Trading, expressed enthusiasm for supporting Salzgitter’s sustainability goals, stating, “The demand for CO2-free electricity supplies from renewable sources is growing strongly. With our energy solutions, we want to promote climate protection in all areas of the economy.”
Salzgitter’s Ambitious Sustainability Targets
Marco Hauer, Head of Energy Procurement at Salzgitter Flachstahl GmbH, emphasized the significance of green energy sources in their decarbonization efforts: “Large quantities of greenhouse gases are currently still being released during conventional steel production. That is why we are driving forward the switch to a virtually CO2-free steel production process on a large scale… By 2025, half of our electricity requirements will come from non-fossil sources, and by 2030 we want to be using 100% green electricity.”
RWE’s Investment in Renewables
With over two decades of experience in developing, constructing, and operating renewable energy plants, RWE is a leader in the field.
The company operates onshore wind farms and solar plants in Germany with a combined installed capacity of approximately 700 MW. To further accelerate the expansion of renewable energy, RWE has pledged to invest around €11 billion net in green generation capacities in Germany by 2030.