Iberdrola signs PPA for green steel power supply

Iberdrola Deutschland has signed a 15-year power purchase agreement (PPA) that will power hydrogen production from its Baltic Eagle offshore wind farm, under construction in the German North Sea.

Monopile foundations for Iberdrola’s Baltic Eagle offshore wind project, which will supply electricity to the Salzgitter low-CO2 steelmaking transformation programme (pic credit: EEW Group)

The 476MW Baltic Eagle project is due to go into operation at the end of 2024. The PPA with Salzgitter Flachstahl is for 114MW of Baltic Eagle’s capacity, destined for the Salzgitter low-CO2 steelmaking transformation programme.

Energy partnerships are a key component of Iberdrola’s integrated growth strategy in Germany, based on strong cooperation activities and long-term PPAs. 

Felipe Montero, Iberdrola Deutschland’s CEO, said initiatives of this kind were contributing to the transformation of Germany’s industry while also supporting the ramping up of green hydrogen in the market.

“Our intention is to work together with other key players in this field in the German business arena and support them in achieving their climate targets with solutions that are economically viable in the market, such as PPAs,” Montero said.

Spain-headquartered Iberdrola has named green hydrogen as one of the new technologies that will underpin its aim to be a “leader in clean energy”. 

Hydrogen can play a major role in heavy transport and industry, including high-temperature industrial processes. Iberdrola identified green hydrogen production targets of 35 kilotonnes per annum by 2025 and 350kta by 2030 at its recent shareholder meeting.

Iberdrola has 60 renewable and green hydrogen initiatives under development in eight different countries, including Europe’s largest with Fertiberia in Spain, where the power is provided by a solar farm.

Recent wind-based green hydrogen projects include a partnership between its ScottishPower subsidiary and Storegga to develop, build and operate green hydrogen production plants in Scotland. The first project, to be operating by 2024, is in Cromarty Firth.