Salzgitter seeking solar PPA, on-site storage to support green steel shift

A unit of steelmaker Salzgitter AG has launched tenders for a 150 MWp solar power purchase agreement (PPA) and on-site battery energy storage system (BESS) as part of efforts to decarbonize steel production.

Salzgitter Flachstahl GmbH, the largest steelmaking subsidiary of Salzgitter AG, has launched a dual tender for a 150 MWp solar PPA and a large-scale BESS to support its transition to low-carbon steel production.

The tender, which opened on June 3 and closes on June 22, is part of the company’s SALCOS program to convert its integrated steelworks in Salzgitter, Germany, to near-zero-emissions production. The PPA will secure long-term renewable electricity supply from ground-mounted PV systems to help close the remaining power demand for the program’s first phase.

Salzgitter said that it is also seeking a partner in a parallel tender to invest in, build, and operate an on-site BESS. The system will help smooth the intermittency of renewable generation, optimize grid usage costs, and ensure the continuity of 24/7 steel production.

It said that under the terms of the agreement, the partner will independently own and operate the battery system on Salzgitter’s premises, with Salzgitter paying a monthly fee for its use. The partner may also retain trading rights for additional revenue opportunities in spot and intraday markets.

Salzgitter Flachstahl said it employed 5,906 people in 2024, producing around 4.3 million tons of crude steel and generating €3.6 billion ($4.1 billion) in revenue. The ongoing transformation under its SALCOS program aims to replace conventional blast furnaces with hydrogen-based direct reduced iron and electric arc furnaces powered by renewables. Once complete, the transition is expected to cut direct CO₂ emissions by roughly 8 million tons per year, or around 1% of Germany’s annual emissions, the group claimed in an online statement.

The company said the BESS will help it to maintain stable production while reducing peak electricity loads and maximizing the value of renewable energy. It described the tender as a strategic step toward securing a sustainable, independent energy supply for green steel.

Interested companies must register for tender documentation by June 22, 2025.