• Salzgitter Flachstahl will procure 147 MW of solar capacity under a long-term agreement with Zelestra, supplying about 158 GWh annually.
• The two projects will pair solar generation with 79 MW/237 MWh of battery storage in Brandenburg and Thuringia.
• Salzgitter will control the batteries, allowing renewable electricity supply to better match industrial demand as it expands low-carbon steel production.

Salzgitter Flachstahl and Zelestra have signed Germany’s largest hybrid solar-plus-storage power purchase agreement, linking renewable generation directly with the decarbonization of steel production.

The long-term PPA covers two new hybrid projects in Brandenburg and Thuringia. Together, they will provide 147 MW of solar capacity and 79 MW/237 MWh of battery storage.

Zelestra will build, own and operate both plants. Salzgitter Flachstahl, a subsidiary of Salzgitter AG, will purchase around 158 GWh of solar electricity each year. It will also control operation of the battery systems.

That structure gives the steelmaker greater flexibility over when renewable electricity is supplied to its industrial operations. The batteries will charge exclusively with surplus electricity generated by the associated solar plants.

Storage brings flexibility to industrial procurement

The agreement is the first hybrid PPA in Germany for both companies. It will also make Salzgitter a battery storage operator for the first time.

For energy-intensive steelmaking, the combination addresses a central challenge in renewable procurement. Solar generation varies throughout the day, while industrial facilities require a more consistent and predictable electricity supply.

Battery storage can shift part of that generation to periods when demand is higher. This allows Salzgitter to increase renewable procurement while better aligning electricity availability with consumption.

Marco Hauer, Head of Group Energy Procurement at Salzgitter Flachstahl GmbH, says: “The combination of solar energy and battery storage opens up the opportunity for us to procure renewable energy for our industrial processes in line with demand and at competitive conditions. The agreement supports our ambitious decarbonization of steel production and helps to secure the competitiveness of the Salzgitter site. We are pleased to have Zelestra at our side, a proficient and experienced business partner who is successfully putting innovative and CO2-free energy solutionsinto practice.”

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Power procurement supports SALCOS transition

The PPA will support Salzgitter’s SALCOS program, which is designed to transform the company’s steel production toward lower-carbon processes.

That transition is expected to increase demand for renewable electricity. Long-term PPAs can provide industrial buyers with greater visibility over power procurement while supporting the financing and development of new renewable capacity.

Adding storage changes the proposition further. Rather than purchasing variable solar generation alone, Salzgitter gains greater control over when part of that electricity becomes available.

For corporate energy buyers, the model could become increasingly relevant as companies seek renewable procurement structures that better reflect their actual consumption profiles.

Zelestra expands German hybrid portfolio

The deal also adds to Zelestra’s growing German development pipeline. The company is advancing more than 2 GW of solar, hybrid, wind and storage projects in the country, which it considers a core market.

Mathias Künicke, CEO of Zelestra in Germany, said: “This is an innovative agreement between two forward-thinking companies with a shared focus on decarbonization. As the largest hybrid deal in Germany to date, it shows real ambition from both parties, and we expect this segment of the market to grow considerably in the months ahead. It builds on the hybrid expertise we’ve developed across other European markets, and we’re proud to work alongside Salzgitter as they take an important step towards commercial green steel production.”

For executives and investors, the agreement illustrates how corporate PPAs are evolving beyond straightforward renewable electricity purchases. Storage can make intermittent generation more useful to large industrial consumers and strengthen the commercial case for new renewable projects.

In Germany, that flexibility has particular relevance for sectors facing costly decarbonization requirements. Steel producers need large volumes of low-carbon electricity while maintaining reliable operations and global competitiveness.

Salzgitter’s agreement brings those priorities together. It combines new renewable capacity, dedicated storage and long-term industrial demand within one procurement structure, offering a potential model for other energy-intensive manufacturers pursuing lower-carbon production.