- Vattenfall and Salzgitter AG finalize their power collaboration agreement
Giant energy firm Vattenfall and industrial group Salzgitter AG have settled on a new collaboration for harnessing green energy for steel production. Commencing in 2028, Salzgitter AG will obtain approximately 300 gigawatt-hours of electricity yearly from the wind farm Nordlicht 1 situated off the coast of Borkum. This equates to the electrical consumption of around 120,000 households.
As compensation, Salzgitter AG will be granted a fixed power connection capacity of 75 megawatts for a 15-year duration.
Martijn Hagens, Vattenfall board member and head of the Markets division, commented, "Our power collaboration with Salzgitter AG supports our long-term strategy at Vattenfall, enabling not only us but also our suppliers, associates, and customers to live in a fossil-free manner." Salzgitter CEO Gunnar Groebler emphasized, "Green steel necessitates green energy - thus, this agreement marks another significant stride in assuring our energy requirements for low-carbon production."
Wind farm set to launch in 2028
The Nordlicht 1 wind farm, situated roughly 85 kilometers north of the North Sea island of Borkum, is presently under construction and slated for launch in 2028. It comprises 68 wind turbines, yielding a total capacity of 980 megawatts. Vattenfall maintains a 51% stake in Nordlicht 1, with BASF claiming the remaining 49%.
Hagens mentioned that fossil-free power from exclusive supply deals provides cost-competitiveness and "the assurance that the supplied electricity originates from renewable sources – including details about the particular type and location of green energy production." Generally, a rise in power collaborations is anticipated. Vattenfall cited an analysis by the German Energy Agency (Dena), suggesting their volume in Germany could escalate to 192 terawatt-hours by 2030. This would correspond to a quarter of Germany's total electricity demand.
The Energy group Vattenfall, through its Board member Martijn Hagens, sees this collaboration with Salzgitter AG as supporting Vattenfall's long-term strategy towards a fossil-free future. With Salzgitter AG set to obtain green energy from Vattenfall's wind farm Nordlicht 1, the Energy group is affirming its commitment to supplying cost-competitive and source-specified renewable energy.
Following this collaboration, Salzgitter AG will receive a substantial amount of green energy, sufficient to meet the annual electrical consumption of around 120,000 households, further bolstering their green steel production strategy.
