Salzgitter signs clean energy deal with Zelestra to power green steel production

Type: Ppa · Technology: Hybrid · Country: Germany · Capacity: 147 MW · Announced: 2026-09-16

Salzgitter Flachstahl, a subsidiary of German steel manufacturer Salzgitter, signed a power purchase agreement with Spanish renewable energy company Zelestra to supply green electricity for low-carbon steel production. The agreement covers two new hybrid solar-plus-storage projects with a combined 147 MW of solar capacity and 237 MWh of battery storage, located in Brandenburg and Thuringia, Germany. The deal marks Germany's largest hybrid solar-plus-storage PPA to date and will support Salzgitter's SALCOS initiative, which targets virtually carbon-free steel production using hydrogen direct reduction powered by renewable energy. Under the terms, Zelestra will build, own, and operate the hybrid plants, while Salzgitter will purchase 158 GWh annually of solar power and control the 237 MWh of battery energy storage systems. Mathias Künicke, CEO of Zelestra in Germany, stated the agreement shows real ambition from both parties and expects the hybrid market segment to grow considerably ahead.

Analysis

Salzgitter Flachstahl, a subsidiary of German steel manufacturer Salzgitter, announced a power purchase agreement with Spanish renewable energy company Zelestra on September 16, 2026, for 147 MW of solar capacity and 237 MWh of battery storage across two new hybrid projects in Brandenburg and Thuringia, Germany. Salzgitter Flachstahl specializes in flat steel products and focuses on green steel production through its SALCOS program. Zelestra provides clean energy solutions, including solar, battery energy storage, wind, and hydrogen projects. Under the agreement, Zelestra will build, own, and operate the hybrid plants, while Salzgitter will purchase 158 GWh annually of solar power and control the 237 MWh of battery energy storage systems.

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