The solar and storage PPA between Salzgitter Flachstahl and Zelestra combines 147 MW of solar with 237 MWh of battery storage
The two hybrid projects with this combined capacity will supply 158 GWh of solar power annually to Salzgitter
The steel producer says it will directly control the batteries to align renewable electricity supply with industrial demand
German steelmaker Salzgitter Flachstahl and renewable energy company Zelestra have signed a long-term power purchase agreement (PPA), calling it Germany’s largest hybrid solar-plus-storage power supply agreement.
The agreement covers 147 MW of solar capacity and 79 MW/237 MWh of battery storage capacity. It spans two new hybrid plants. One is located in Brandenburg and the other in Thuringia.
Spain’s Zelestra will build, own, and operate the facilities, while Salzgitter will purchase the generated solar electricity and manage the operation of the battery systems. The two plants are expected to supply Salzgitter with 158 GWh of solar electricity annually.
The batteries will be connected directly to the solar plants and charged only with surplus solar generation. Salzgitter said this setup will enable it to adjust the timing of renewable electricity supply to better match its industrial consumption. It will also make the steel producer a battery storage operator for the first time.
This agreement is the first hybrid PPA for both Salzgitter and Zelestra in Germany.
Salzgitter said the agreement will help secure additional green electricity for transforming its steel production under SALCOS (Salzgitter Low CO₂ Steelmaking). The program, developed by its parent company Salzgitter AG, aims to shift steel production to a virtually carbon-free process.
“The combination of solar energy and battery storage enables us to procure renewable energy for our industrial processes on demand and at competitive prices,” said Marco Hauer, Head of Group Energy Procurement at Salzgitter Flachstahl.
He added that the agreement supports Salzgitter’s steelmaking decarbonization plans and the competitiveness of its Salzgitter site.
For EQT-backed Zelestra, the deal adds to its expanding German project pipeline. The company said it is advancing more than 2 GW of solar, hybrid, wind, and storage projects in the country.
Mathias Künicke, CEO of Zelestra in Germany, said the agreement reflects a shared focus on decarbonization and expects the hybrid solar-plus-storage segment to grow in the coming months.
Zelestra offloaded its Latin American renewable energy platform earlier this year to focus on growth in Europe and the US (see Zelestra Divests 3.5 GW Latam Assets In $1B+ Deal).
