Salzgitter Flaschstal and Zelestra sign largest hybrid solar-plus-energy-storage contract in Germany to supply green electricity for low-carbon steel production

• The agreement spans two projects for 147 MW of solar capacity, combined with 79 MW/237 MWh of battery storage
• Zelestra will build and own two new hybrid plants and Salzgitter Flachstahl will purchase the solar power and control the operation of the battery storage systems
• The battery storage systems are charged exclusively from the solar plant, ensuring the electricity delivered is 100% green

Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, and Zelestra have signed Germany's largest hybrid solar-plus-storage power supply agreement (PPA). The long-term agreement covers two projects that support the production of green steel and increase grid flexibility.

As part of the agreement, Zelestra will build, own and operate two new hybrid plants, each with directly connected battery storage systems, in Brandenburg and Thuringia. Salzgitter will purchase a total of 147 MW or 158 GWh/a of solar power from both plants and control the operation of the battery storage systems. This allows the company to increase its procurement of green electricity and adapt electricity supply to match consumption using energy storage.

The agreement is the first hybrid PPA in the German market for both partners and makes Salzgitter the operator of a battery storage system for the first time. The battery storage systems are charged exclusively with surplus solar power from the plants.

For Salzgitter Flachstahl, hybrid PPAs are an important building block in meeting the increasing demand for green electricity for the transformation of steel production within the SALCOS® framework, for the long-term and competitively.

The agreement underlines Zelestra's rapid growth in Germany. As a core market, the company is now advancing more than 2 GW of solar, hybrid, wind and storage projects here.

Marco Hauer, Head of Group Energy Procurement at Salzgitter Flachstahl GmbH, says: “The combination of solar energy and battery storage opens up the opportunity for us to procure renewable energy for our industrial processes in line with demand and at competitive conditions. The agreement supports our ambitious decarbonization of steel production and helps to secure the competitiveness of the Salzgitter site. We are pleased to have Zelestra at our side, a proficient and experienced business partner who is successfully putting innovative and CO₂-free energy solutionsinto practice.”

Mathias Künicke, CEO of Zelestra in Germany, said: "This is an innovative agreement between two forward-thinking companies with a shared focus on decarbonization. As the largest hybrid deal in Germany to date, it shows real ambition from both parties, and we expect this segment of the market to grow considerably in the months ahead. It builds on the hybrid expertise we've developed across other European markets, and we're proud to work alongside Salzgitter as they take an important step towards commercial green steel production."

Zelestra is a vertically integrated company specializing in the development, marketing, construction and operation of large-scale renewable energy projects. According to Bloomberg New Energy Finance, the company is the seventh-largest provider of clean electricity to corporate customers globally and in the US. Zelestra is backed by EQT, one of the world's largest funds with €291 billion in assets under management.

For more information, visit: https://zelestra.energy