Salzgitter and Zelestra have signed the largest hybrid solar energy deal

Zelestra will build and operate two new solar power stations with a combined capacity of 147 MW

Salzgitter Flachstahl GmbH (a subsidiary of Salzgitter AG) and renewable energy developer Zelestra have signed Germany’s largest corporate power purchase agreement (PPA) under a hybrid scheme. This is stated in a press release from Salzgitter.

The agreement provides for the integration of solar power generation and battery energy storage systems (BESS) to enable the industrial production of environmentally friendly steel.

Under the terms of a long-term contract, Zelestra will build and operate two new hybrid plants in Brandenburg and Thuringia with a combined solar capacity of 147 MW. They will be equipped with energy storage systems with a total capacity of 79 MW / 237 MWh. Salzgitter Flachstahl will purchase 158 GWh of solar electricity per year and will have full control over the operation of the battery systems. The storage systems will be charged exclusively from surplus solar generation, ensuring that 100% of the energy consumed is environmentally friendly.

For both companies, this is the first hybrid PPA contract of its kind on the German market. The agreement will enable Salzgitter to act as an energy storage system operator for the first time and to flexibly adapt its energy supply to the needs of steel production as part of the SALCOS® decarbonisation programme.

Marco Hauer, Head of Energy Procurement at Salzgitter Flachstahl, noted that the combination of solar energy and storage systems makes it possible to source renewable energy at competitive prices in line with the production schedule, thereby maintaining the plant’s competitiveness.

As reported by GMK Center, the seamless steel pipe manufacturer Tenaris has commissioned two new solar power stations at its plants in Sabbio Bergamasco and Arcore in northern Italy. The total investment in this project amounted to around €10 million. Each of the new stations has a capacity of around 5 MW (total peak capacity: 10 MW).