Octopus Energy and Salzgitter Group partner to slash steel emissions with the power of the sun

Octopus Energy’s generation arm and Salzgitter Group, one of Germany’s leading steel and technology groups, are joining forces to radically decarbonise steel production in Germany using the power of the sun.

The agreement will see Octopus – which manages a €7bn portfolio of green energy projects – 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 pioneering low 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.

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

Ralph Schaper, Head of Salzgitter AG’s Energy Economy Department said: “As we work towards our strategic emissions reduction goal, this latest 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 extensive track record in European renewable energy, is an ideal long-term partner for us.”

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.