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Salzgitter and Vattenfall announced a green energy partnership

German steel producer Salzgitter AG has taken a significant step towards its sustainability production goals. The company has signed a long-term green energy agreement with Swedish energy giant Vattenfall.

Salzgitter and Vattenfall announced a green energy partnership

The agreement will see Vattenfall supplying Salzgitter with 300 GWh of fossil-free electricity annually from the Nordlicht 1 offshore wind farm, currently under construction in the North Sea, for a period of 15 years starting in 2028. This amount of electricity is estimated to be equivalent to the annual consumption of approximately 120,000 households.

Gunnar Groebler, CEO of Salzgitter, emphasized the significance of this agreement, stating that the production of green steel necessitates the use of green energy. He added that the agreement is crucial in securing the energy needs for the Salcos program, which is a key initiative aimed at developing sustainable steel production at Salzgitter.

This agreement marks Salzgitter's seventh green energy purchase deal under the Salcos project, officials reported. The company aims to source half of its Flachstahl facility's energy from renewables by 2025, expanding to 100% by 2030, according to the announcement. The Nordlicht 1 wind farm is slated to commence operations in 2028, sources said.

The project is being hailed as a significant step in Europe's green energy transition, sources say. Industry experts emphasize that this strategic partnership marks a concrete move towards decarbonizing the German steel industry. Analysts note that it sheds light on the sector's sustainable future.

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