EnBW and Salzgitter Group ink PPA for a German wind farm

4C Offshore | Tom Russell
By: 23/11/2022 EnBW

EnBW and Salzgitter Flachstahl GmbH (Salzgitter Group) have signed a long-term electricity supply contract. The electricity is set to come from the
He Dreiht offshore wind farm in the North Sea.

With this power purchase agreement (PPA), Salzgitter Group secured the supply of 50 MW of electricity for 15 years from the new 900 MW wind farm located around 90 kilometers north of the island of Borkum, which is scheduled to be commissioned at the end of 2025.

According to Salzgitter Group, the PPA will further safeguard the transformation project known as SALCOS – Salzgitter Low CO2 Steelmaking. Producing green hydrogen using sustainably generated energy is a core element in the production of virtually carbon-free steel.

"This cooperation with EnBW is a further building block in our energy strategy to secure the demand for regeneratively generated electricity for Salzgitter AG and in particular for the SALCOS® transformation program. Here, too, we are working with strong partners - true to our mission of 'Partnering for Transformation'," said Gunnar Groebler, CEO of Salzgitter AG. "Like us, our supplier and customer industries are facing the important tasks of establishing sustainable production and process chains. With the conclusion of this PPA, we are taking the path to climate-neutral production one step further."

“Salzgitter represents the third strong partner we have secured for our offshore wind farm ‘He Dreiht’, which is released without subsidies,” said EnBW board member Georg Stamatelopoulos. “PPAs are a key element of the energy transition and can make a significant contribution to the fast expansion of renewable energies. Long-term PPAs secure the necessary investment while also enabling energy-intensive companies to achieve ambitious climate targets,” he explains.

He Dreiht is being developed as a subsidy-free wind farm, and was awarded grid connection agreement in the German capacity auction held in April 2017. The 900 MW project is located approximately 85 km north of the Borkum Island and 95 km to the west of the Helgoland Island. Its operation and maintenance will be conducted from EnBW's base in Emden. Full commissioning of the wind farm is expected in the second half of 2025. It will feature 64 wind turbines, each with a 15 MW capacity.
EnBW will make the final investment decision concerning the construction of the offshore wind farm next year.In the meantime, the supplier selection process for the main components of the project has largely been completed.

Almost one year ago, EnBW signed the first PPA for He Dreiht with Fraport, followed more recently by another one with Evonik.