Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, and renewable energy company Zelestra have signed Germany’s largest hybrid solar-plus-storage power purchase agreement (PPA). The long-term agreement covers two projects that will support green steel production and increase grid flexibility.
147 MW of solar and 79 MW/237 MWh of batteries
Under the agreement, Zelestra will build, own and operate two new hybrid plants in the states of Brandenburg and Thuringia, each with a directly connected battery storage system. The projects will total 147 MW of solar capacity and 79 MW/237 MWh of battery storage.
Salzgitter will buy a total of 158 GWh of solar electricity a year from the two plants and will itself control the operation of the battery systems. This will allow the company to increase its green power purchases and use storage to match supply to its consumption. As the batteries will be charged only with surplus solar power from the plants, all electricity delivered will be green.
A first for both sides
The agreement is the two companies’ first hybrid PPA in the German market and makes Salzgitter a battery storage operator for the first time. For Salzgitter Flachstahl, hybrid PPAs are an important building block for meeting, over the long term and on competitive terms, the growing green power demand of its steelmaking transformation under the SALCOS® programme. Zelestra is developing more than 2 GW of solar, hybrid, wind and storage projects in Germany.
Marco Hauer, Head of Group Energy Procurement at Salzgitter Flachstahl, said the combination of solar and battery storage offers the opportunity to source renewable energy for industrial processes in line with demand and on competitive terms. Mathias Künicke, CEO of Zelestra Germany, said this is the largest hybrid deal in Germany to date and that the company expects this market segment to grow significantly in the coming months.
Sources
- Salzgitter AG, “Salzgitter Flachstahl and Zelestra sign largest hybrid solar-plus-energy-storage contract in Germany to supply green electricity for low-carbon steel production”, press release, 15.09.2026 – salzgitter-ag.com
Image: Salzgitter AG
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