Iberdrola Deutschland and Stahl Holding Saar GmbH & Co. KGaA have signed a long-term power purchase agreement. The cooperation between the two companies is set for 15 years and covers an annual consumption of 200 GWh. The deal’s energy production is equivalent to some 50 MW offshore wind capacity, to be supplied by Iberdrola’s Baltic Eagle offshore wind project being built in the Baltic Sea.
This will enable SHS to sustainably transform the business activities of its Saarstahl and Dillinger companies while reducing its own steel production carbon dioxide emissions in the future. This is the first of several PPAs planned by the two companies for the coming years.
With this PPA, Iberdrola and SHS underpin their respective strategies to actively promote the energy transition in Germany. In addition to this long-term partnership, other opportunities for cooperation are being explored, such as on-site renewable energy and the production of green hydrogen.
The Baltic Eagle offshore wind farm is the second of three large-scale Iberdrola projects in Germany, alongside the Wikinger and Windanker wind farms. Baltic Eagle will be commissioned at the end of 2024 with a total capacity of 476 MW, enough to supply green energy to 475,000 private households.
“We are very pleased to support SHS in its ambitious climate goals,” says Felipe Montero, CEO of Iberdrola Germany. “As part of our growth in the strategic German market, we are paying particular attention to partnering with energy-intensive companies. In doing so, we are contributing to the sustainable transformation of the economy.”
