Iberdrola and SHS sign 15-year PPA

The deal’s green energy production is equivalent to 50 MW offshore wind capacity, which will 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 (CO2) 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, saving 800 000 tpy of CO2 per year.

"We are very pleased to support SHS in its climate goals," said 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."

"With the conclusion of this PPA, we are taking a big step towards our goal of climate-neutral steel production. Our cooperation with Iberdrola helps us to secure renewable electricity for the transformation process of our companies Saarstahl and Dillinger. Currently, our production is still based on classic blast furnace technology. From 2030 onwards, we want to produce 3.5 million t, about 70% of our steel, with lower emissions, and by 2045 we want to achieve production that is as CO2-neutral as possible," said Dr Karl-Ulrich Köhler, Chairman of the Management Board of SHS – Stahl-Holding-Saar and Chairman of the Management Boards of Dillinger and Saarstahl.

Read the article online at: https://www.energyglobal.com/special-reports/20062023/iberdrola-and-shs-sign-15-year-ppa/