Zelestra signs 147MW solar-storage PPA with Salzgitter steel
Spanish IPP Zelestra has signed Germany's largest hybrid power purchase agreement to date with steelmaker Salzgitter Flachstahl.
Spanish independent power producer Zelestra has signed a power purchase agreement with German steel manufacturer Salzgitter Flachstahl for a new solar-plus-storage portfolio. Zelestra Germany CEO Mathias Künicke called it the largest hybrid deal in Germany to date.
The portfolio consists of two new solar PV projects with a combined capacity of 147MW. They will be paired with 79MW/237MWh of battery energy storage systems. The projects will be built in Thurinigia and Brandenburg in eastern and central Germany. They will supply power to the Salzgitter steel facility in Lower Saxony.
Zelestra will build, own, and operate the solar facilities. Salzgitter Flachstahl, a subsidiary of Salzgitter AG, will acquire all the generated power and manage the batteries. This is the first hybrid PPA in Germany for both companies.
Project Specifications and Role
The following table details the key technical specifications of the Zelestra and Salzgitter agreement as reported in the source.
| Component | Capacity |
|---|---|
| Solar PV Projects (combined) | 147 MW |
| Battery Energy Storage System (BESS) | 79 MW / 237 MWh |
Marco Huber, head of group energy procurement at Salzgitter Flachstahl, said the combination opens an opportunity to procure renewable energy for industrial processes in line with demand. He stated the agreement supports the ambitious decarbonisation of steel production and helps secure the competitiveness of the Salzgitter site.
Integration with SALCOS Decarbonization Plan
This effort is part of Salzgitter AG's broader €2.7 billion initiative called SALCOS (Salzgitter Low CO2 Steelmaking). The plan aims to replace coal in steelmaking with green hydrogen produced from renewable energy. Solar PV technology, which originated in the United States in the 1950s for converting sunlight into electrical power, is now a cornerstone of such utility-scale decarbonization projects.
Zelestra CEO Leonardo Moreno said on LinkedIn that the deal will be an important element of Salzgitter AG's decarbonisation plan. He noted it is the largest solar-plus-storage offtake agreement signed in Germany.
Salzgitter's Broader Renewable Strategy
The steelmaker has previously invested in green hydrogen production. This included a partnership with wind turbine operator Avacon, which installed a 30MW wind farm at the manufacturing centre. The Zelestra deal marks Salzgitter Flachstahl's first entry into the solar-plus-storage space.
The source for this report is PV Tech.
