Duisburg: thyssenkrupp Steel has finalized four contracts securing supply of around 230 GWh of green electricity toward the further decarbonization of its steel production. The Power Purchase Agreements (PPAs) with the suppliers Quadra Energy, Statkraft, Centrica Energy, and Sunnic Lighthouse encompass a portfolio of wind and photovoltaic (PV) installations distributed across Germany. The objective behind the PPAs is to procure additional green electricity for the subsidiaries thyssenkrupp Rasselstein, thyssenkrupp Precision Steel, and thyssenkrupp Electrical Steel. Securing supplies of renewable electricity is a core component of the energy and transformation strategy pursued by Germany’s biggest steel manufacturer.
PPAs for green electricity as lever for CO₂-reduced steel production
Philipp Conze, Chief Financial Officer (CFO), thyssenkrupp Steel, underlines this aspect: “In concluding the new green power supply contracts, we are advancing our transformation toward CO₂-reduced production. PPAs for electricity are an indispensable component of our decarbonization strategy.”
The contract volume of around 230 GWh equates to the typical electricity consumption of around 70,000 households. The green power supplies originate from newly commissioned solar photovoltaic installations and from onshore wind farms in Germany that are no longer state-subsidized. Not only does the purchase of green electricity avoid over 70,000 metric tons of CO2 emissions annually, it also enables wind farms in Germany no longer receiving EEC subsidies to continue operating on an economically viable basis.
Green electricity for the locations in Andernach, Gelsenkirchen, and Hagen-Hohenlimburg
Since the beginning of the year, the green electricity has primarily been supplied to thyssenkrupp Steel subsidiaries thyssenkrupp Rasselstein and thyssenkrupp Electrical Steel. In addition, thyssenkrupp Steel’s subsidiary in Hohenlimburg has been sourcing green electricity from a neighboring wind farm in Hagen-Hohenlimburg since summer 2024. This is the first project nationwide involving power supplied directly from a wind farm to a German industrial company. The green electricity generated in the wind farm is fed directly into the thyssenkrupp Hohenlimburg plant network via a three-kilometer-long cable line. As of now, at least 30 percent of the electricity supplied to the three tkS subsidiaries will be green. By concluding the PPAs, thyssenkrupp Steel is enabling the even more sustainable production of high-quality steel grades for packaging, transformers, electric motors, and precision applications.
Clarissa Odewald, CEO of thyssenkrupp Rasselstein, explains the importance of the PPAs for the packaging steel producer: “Sustainability plays a major role for thyssenkrupp Rasselstein and our customers. Thanks to the new green power supply contracts, we can now save over 50,000 metric tons of CO₂ emissions per year.”
Dennis Becher, Head of Energy Management, thyssenkrupp Steel, adds: “We are delighted about the partnerships with Quadra Energy, Statkraft, Centrica Energy, and Sunnic Lighthouse. The four new Power Purchase Agreements mean we are further expanding our green electricity portfolio. As thyssenkrupp Steel Europe advances its green transformation, our electricity consumption will rise significantly in the years ahead, driving the need for additional green power supply agreements.”
Electricity needs set to rise as the green transformation advances
thyssenkrupp Steel is pursuing the goal of gradually and permanently decarbonizing its steel production. The core element of the transformation strategy lies in the construction of a hydrogen-capable direct reduction plant. Particularly given that these new climate-friendly technologies are accompanied by a substantially rising demand for electricity and renewable energies, the consistent expansion of energy efficiency – along with the increased use of renewables – is a critical success factor for a comprehensive transformation. The procurement of green electricity via PPAs is a component of this package of measures and is already helping make for a substantial reduction in CO₂ emissions. thyssenkrupp Steel is thus making a crucial contribution to industrial transformation and the achievement of climate goals.
