Iberdrola Germany and SHS -Stahl Holding Saar GmbH & Co. KGaA have concluded a long-term power purchase agreement (PPA). The cooperation between the two companies is set for 15 years and covers an annual consumption of 200 GWh.

The green electricity is equivalent to an offshore capacity of about 50 MW and will be supplied from Iberdrola Germany’s new Baltic Eagle offshore wind farm in the Baltic Sea. This will enable SHS to sustainably transform the business activities of its Saarstahl and Dillinger companies and reduce its own future carbon emissions during steel production. This latest PPA is to be followed by others in the coming years.

Vision of a sustainable industrial transformation

With the signed PPA, Iberdrola and SHS are undergirding their respective strategies to actively advance the energy transition in Germany. Other opportunities for collaboration will be explored in addition to this long-term PPA partnership, including in the area of renewable energy plant development and green hydrogen production.

The Baltic Eagle offshore wind farm is the second of three large-scale Iberdrola projects in Germany, in addition to the Wikinger and Windanker wind farms. Baltic Eagle will be commissioned at the end of 2024 with a total capacity of 476 megawatts. This is equivalent to the power needed to supply 475,000 private households and will save 800,000 tons of CO2 per year.

“We are pleased to support SHS with its ambitious climate goals,” said Felipe Montero, CEO of Iberdrola Germany. “As part of our growth in the important German market, we are paying particular attention to partnerships with energy-intensive companies. In doing so, we are contributing to the sustainable transformation of the economy.”

“With the conclusion of this PPA, we are taking a major step toward our goal of climate-neutral steel production. Working together with Iberdrola helps us secure the required supply of regeneratively generated electricity for the transformation process at our companies Saarstahl and Dillinger. Our production is still based on traditional blast furnace technology. By 2030, we want to be producing 3.5 million metric tons – around 70 percent of our steel – with lower emissions, and by 2045 we want to achieve production that is as carbon-neutral as possible,” said Dr. Karl-Ulrich Köhler, Chairman of the Management Board of SHS – Stahl-Holding Saar and Chairman of the Board of Management of Dillinger and Saarstahl, describing the upcoming transformation process.

About Iberdrola
Iberdrola, Europe’s largest utility by market capitalization and one of the world’s three largest energy companies, is a leader in renewable energy and at the forefront of the energy transition toward a low-carbon economy. The group supplies energy to nearly 100 million people in dozens of countries. Iberdrola focuses on renewable energy, smart grids and connected solutions for its customers. Major markets include Europe (Spain, United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also represented in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland.

The company has over 40,600 employees and assets of more than EUR 154.6 billion. Iberdrola had revenues in 2022 of EUR 54 billion, net profits of more than EUR 4.34 billion, and paid EUR 7.5 billion in taxes in the countries where it operated.

The wholly owned subsidiary Iberdrola Deutschland, headquartered in Berlin, is the largest operator of offshore wind farms in the German Baltic Sea. The Offshore and Onshore business units are active in the planning, construction and operation of offshore and onshore wind farms and photovoltaic projects. The company offers its industrial and commercial customers tailor-made solutions for the supply of green energy, from the traditional supply of electricity including portfolio management services, to long-term PPA contracts – linked to Iberdrola’s own renewable energy plants – and PV solutions for self-consumption. Iberdrola Germany also provides cross-technology integrated solutions, such as battery storage or the use of green hydrogen for industrial use.