Under the agreement, Zelestra will build and own two new hybrid plants with integrated battery storage systems in Brandenburg and Thuringia. Salzgitter will purchase a total of 158 GWh of solar power annually from the two plants and control the operation of the battery storage systems.
The batteries will be charged exclusively with surplus electricity generated by the solar plants. This will ensure that the electricity stored and supplied to Salzgitter comes entirely from renewable sources. The storage systems will also allow the company to manage the time gap between solar power generation and electricity consumption at its industrial facilities.
Renewable energy support for green steel production
The agreement is Salzgitter Flachstahl’s first hybrid PPA in Germany and will also mark the first time the company controls the operation of a battery storage system. The project is expected to increase Salzgitter’s access to renewable electricity needed to decarbonise steel production under its SALCOS® transformation programme.
Marco Hauer, Head of Group Energy Procurement at Salzgitter Flachstahl, said combining solar power with battery storage enables renewable electricity to be procured in line with the needs of industrial processes. Hauer added that the agreement will support the company’s steel decarbonisation targets and the competitiveness of the Salzgitter site.
Mathias Künicke, CEO of Zelestra in Germany, said the agreement represents the largest hybrid energy deal in Germany to date and expressed expectations for significant growth in the solar and energy storage market in the coming months.
Zelestra considers Germany one of its core markets and is currently developing a portfolio of more than 2 GW of solar, wind, hybrid and energy storage projects in the country.
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