Germany's Salzgitter Signs 147MW Solar-Plus-Storage Hybrid PPA with Zelestra

en.Wedoany.com Reported - Salzgitter Flachstahl, the steel subsidiary of Germany's Salzgitter Group, has entered into a hybrid solar-plus-battery-storage power purchase agreement (PPA) with renewable energy company Zelestra, with the green electricity purchased to be used for low-carbon steel production. The contract is backed by two newly built hybrid plants: a combined solar capacity of 147MW, paired with battery storage of 79MW/237MWh (megawatt-hours).

The sites are located in Brandenburg and Thuringia, with Zelestra responsible for construction, ownership and operation. Salzgitter Flachstahl purchases the solar power generated by the plants, with an annual purchase volume of 158GWh (gigawatt-hours), and manages the operation of the battery energy storage system.

All electricity used to charge the batteries comes from surplus solar generation, ensuring that the electricity supplied externally is fully renewable. This is the first solar-plus-storage hybrid PPA the two companies have implemented in Germany; for Salzgitter Flachstahl, it is also the first time it has incorporated a battery energy storage system into its own operational management.

The agreement serves the company's goals of expanding its procurement of renewable electricity and enhancing the flexibility of its electricity use, enabling a closer match between consumption and available supply.

Marco Hauer, Head of Energy Procurement at Salzgitter Flachstahl Group, said that combining solar with battery storage enables the company to obtain renewable energy for its industrial processes on demand and on competitive terms. He said the agreement both supports the decarbonization goals of steel production and helps maintain the competitiveness of the Salzgitter site; Zelestra is a professional and experienced partner that is putting innovative, CO₂-free energy solutions into practice.

Both companies said that amid growing demand for green electricity in the steel production transition, especially under the SALCOS transformation framework, such hybrid contracts can play a role.

Zelestra said the contract is part of its continued expansion in Germany; the company is currently advancing more than 2GW of renewable energy projects spanning solar, hybrid, wind and storage.

Mathias Künick, CEO of Zelestra Germany, said this is an innovative agreement between two forward-looking companies with a shared focus on decarbonization, and the largest hybrid deal in Germany to date, reflecting the ambition of both parties; he expects the segment to grow substantially in the coming months.

In April 2026, Zelestra signed Spain's first PPA to hybridize an existing solar plant with battery storage, together with EDP.