Octopus Energy and Salzgitter Group use solar power to reduce steel emissions

The agreement will see Octopus supply Salzgitter with 126 000 MWh of clean electricity per year from the Schiebsdorf solar farm in Brandenburg.

The deal between the two companies supports Salzgitter’s low carbon dioxide (CO2) steelmaking programme. This aims to reduce carbon emissions of Germany’s steelmaking sector, currently responsible for about 28% of the country’s industrial emissions.

This will secure more clean electricity for Salzgitter, giving it certainty over electricity costs whilst enabling it to produce steel with a minimal carbon footprint.

Salzgitter plans to use an electrolyser to harness the energy from Octopus’ solar farm to produce green hydrogen, replacing fossil fuels in the steel production process.

The long-term agreement will start later this year once the solar farm becomes operational and will last for 10 years.

Octopus acquired Schiebsdorf solar farm last month, on behalf of the Sky fund (ORI SCSp). It’s the largest solar farm in the firm’s growing energy portfolio in Germany and globally.

It comes as Octopus supercharges its green energy activity in Germany, with plans to channel more than €1 billion into German clean energy infrastructure by 2027.

Octopus entered Germany’s renewables market last year, and has backed seven projects, including solar farms, onshore and offshore wind farms – with more already in the pipeline.

“This partnership with Salzgitter is a step towards decarbonising heavy industry and propelling Germany’s clean energy transition. Germany’s shift to net zero has many opportunities to get involved, and we’re geared up to announce more deals very soon,” said Alex Brierley, Co-Head of Octopus Energy Generation’s fund management business.

“As we work towards our strategic emissions reduction goal, this latest power purchase agreement (PPA) adds another significant source of clean electricity to power our operations, create green hydrogen and ultimately produce greener steel for our customers. Octopus, with its etrack record in European renewable energy, is an ideal long-term partner for us,” commented Ralph Schaper, Head of Salzgitter AG’s Energy Economy Department.

 

 

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