Salzgitter Flachstahl seeks a 150 MW solar PPA and on-site battery storage partnership in Germany
It intends to enter into a long-term power purchase agreement for solar energy supply to start from January 2027
The tenders support Salzgitter’s aim for 95% carbon emission reduction via renewables and green hydrogen under SALCOS
One of the largest steel producers in Europe, Salzgitter AG’s subsidiary Salzgitter Flachstahl GmbH (SZFG) has launched tenders for up to 150 MW solar power purchase agreement (PPA), along with the installation of an onsite battery energy storage system (BESS) at its steelworks site.
Salzgitter said that SZFG seeks to enter a long-term PPA for ground-mounted solar PV capacity installed in Germany. A key award criterion is the integration of an on-site storage system with a corresponding utilization concept. It is also looking for a partner who can invest, construct and operate the BESS for its steelworks site.
Both these projects are part of the Germany-headquartered group’s SALCOS (Salzgitter Low CO2 Steelmaking) program to promote climate-neutral steel production with the help of renewable energy sources and green hydrogen generation.
It has already signed extensive PPAs for the implementation of the 1st expansion phase of the SALCOS program. With these fresh tenders, it seeks to close the remaining gap, stated the group.
The delivery of solar energy from the 150 MW capacity will need to begin from January 2027 for a period of 10 years. Salzgitter said it is open to both pay-as-produced and pay-as-forecast delivery options.
Interested companies can register for these tenders by June 20, 2025, according to the calls issued on June 3, 2025.
It further shared that the 1st phase of the SALCOS transformation will begin in 2026/27, aiming to shift Salzgitter’s steel production to low-carbon methods using renewable energy. This change will replace the current carbon-based process, cutting direct carbon emissions by about 95% at SZFG.
In H1 2024, Salzgitter entered a corporate PPA with Iberdrola in Germany for the supply of 900 GWh to SZFG for 15 years (see Green Steel Production In Germany With Solar Power).