Market update · Europe
Zelestra Signs 147MW Solar-Plus-Storage PPA with German Steelmaker Salzgitter Flachstahl
Spanish IPP Zelestra has entered into Germany's largest hybrid solar-plus-storage power purchase agreement (PPA) with steel manufacturer Salzgitter Flachstahl. The 147MW solar PV portfolio combined with 79MW/237MWh battery storage will supply renewable energy to Salzgitter's steel facility, supporting its decarbonisation efforts.
SolTraCo market update · · 3 min readDetails of the Solar-Plus-Storage Portfolio
Zelestra has signed a PPA with German steel manufacturer Salzgitter Flachstahl for a new solar-plus-storage portfolio consisting of two solar PV projects with a combined capacity of 147MW. These projects will be paired with 79MW/237MWh of battery energy storage systems (BESS).
The projects will be located in Thuringia and Brandenburg, Germany, and will supply power directly to the Salzgitter steel facility in the city of Salzgitter.
Operational and Ownership Structure
Zelestra will build, own, and operate the solar facilities, while Salzgitter Flachstahl will acquire all generated power and manage the battery systems. This agreement marks the first hybrid PPA for both companies in Germany.
The hybrid setup enables Salzgitter to procure renewable energy aligned with industrial demand and competitive conditions.
Contribution to Salzgitter's Decarbonisation Strategy
The PPA supports Salzgitter Flachstahl's ambitious decarbonisation plan, known as SALCOS, which aims to replace coal in steelmaking with green hydrogen produced from renewable energy. This initiative is a €2.12 billion investment by Salzgitter AG.
Prior to this deal, Salzgitter invested in green hydrogen production through a 30MW wind farm operated by Avacon. The Zelestra agreement represents the company's first venture into solar-plus-storage solutions.
Sources
This update is an original SolTraCo synthesis of the linked industry sources. Reported facts and commercial interpretation are kept separate. It does not contain confidential deal information and is not investment, legal or technical advice.