EnBW signs 50MW green steel PPA


April 15, 2024

German utility EnBW has agreed a 50MW deal to supply steel maker Stahl-Holding-Saar with electricity from the 960MW He Dreiht offshore wind farm in the North Sea.

SHS is set to use electricity from the 15-year power purchase agreement to support sustainable changes at the business activities of its subsidiaries Dillinger and Saarstahl. He Dreiht is due to be commissioned in late 2025.

Georg Stamatelopoulos, chief executive at EnBW, said: “The interest shown by customers proves that our strategy of constructing the wind farm without any state funding and hedging most of the electricity generated through long-term supply contracts is working really well. This is a good sign that the market mechanisms are functioning.”

Stefan Rauber, chairman at SHS, called the deal a “real win-win situation”. He said: “We supply the steel for the wind farm, while the electricity generated here from renewable sources in turn helps us to drive the transformation process for our companies Saarstahl and Dillinger. Our steel production operation is still based on classic blast furnace technology. From 2030, we want to generate fewer emissions when manufacturing 3.5 million metric tons – about 70 percent – of our steel.”

Read more