Iberdrola Deutschland and SHS – Stahl Holding Saar GmbH & Co. KGaA conclude 15-year power supply agreement (PPA)

Around 50 MW from the Baltic Eagle offshore wind farm will allow SHS to cover 200 GWh of annual consumption

Going forward, green electricity will be used in the production of low-CO2 steel in the Saarland steel industry

Further opportunities for cooperation in the fields of onshore, hydrogen and “circularity” (offshore wind) are being examined by both companies

Iberdrola Deutschland and SHS -Stahl Holding Saar GmbH & Co. KGaA have concluded a long-term power supply agreement (PPA). The cooperation between the two companies is set for 15 years and covers an annual consumption of 200 GWh.

The deal’s green energy production is equivalent to some 50 MW offshore wind capacity, to 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 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 megawatts, enough to supply green energy to 475,000 private households while saving 800,000 tonnes of CO2 per year.

“We are very pleased to support SHS in its ambitious climate goals,” says 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 tonnes, about 70% of our steel, with lower emissions, and by 2045 we want to achieve production that is as CO2-neutral as possible,” says Dr Karl-Ulrich Köhler, Chairman of the Management Board of SHS – Stahl-Holding Saar and Chairman of the Management Boards of Dillinger and Saarstahl, explaining the upcoming transformation process.