Salzgitter Flachstahl GmbH, a subsidiary of German steel giant Salzgitter AG, has just launched two parallel tenders aimed at powering its journey to low-carbon steel production under the SALCOS (Salzgitter Low CO₂ Steelmaking) programme.
📌 Tender 1: 150 MW p ground-mounted solar PPA
The company is seeking a long-term Power Purchase Agreement (PPA) for a 150 MW solar installation scheduled to begin operations around January 2027 and run for a decade. This latest tender closes on 22 June 2025 .
📌 Tender 2: On-site battery energy storage system (BESS)
In parallel, Salzgitter is inviting bids from partners to design, construct and operate a large-scale battery installation directly at the steelworks. The battery system will be jointly used by both Salzgitter and the selected developer, helping to smooth fluctuations from the solar array and guarantee uninterrupted, 24/7 power for steelmaking operations .
Why This Tender Matters
- Enabling carbon-cutting steel
These paired tenders mark a significant step towards decarbonising steel production. By integrating renewables and storage, Salzgitter aims to reduce its direct CO₂ emissions by approximately 95% once its hydrogen-based, electric arc furnace process is up and running . - Enhancing energy security
Keeping the battery on-site ensures that intermittent solar power is effectively managed, avoiding production halts due to cloudy periods. It also helps to shave peak grid loads, potentially lowering electricity costs . - Creating commercial flexibility
Salzgitter will pay a monthly fee for shared battery use, while the storage operator may leverage intraday market opportunities—adding a commercial incentive beyond merely supporting production .
What Lies Ahead
- Tender timeline: Interested parties must register by 22 June 2025, with first phase scheduled to go live in 2026–27 .
- System design: Solar proposals should include delivery models (‘pay‑as‑produced’ or ‘pay‑as‑forecast’), while battery bids must detail usage strategies for both production and market participation .
- Strategic alignment: These moves reinforce the broader SALCOS strategy to transition from blast furnaces to hydrogen-based, renewable-powered steelmaking.
Salzgitter’s dual tender, anchoring renewable generation with on-site battery storage, is a clear signal that heavy industry can decarbonise without sacrificing continuity. By combining solar power with energy storage and market-based operation, Salzgitter is building a resilient, efficient blueprint for green steel.
