Octopus Energy and Salzgitter Group partner to slash steel emissions with the power of the sun

• Salzgitter Group signs solar energy supply deal with Octopus Energy Generation
• 126,000 MWh of energy to be supplied from solar farm in Brandenburg per year
• Will help slash carbon emissions and decarbonise German steel production

London, 21 February 2024 - Octopus Energy’s generation arm and Salzgitter Group, one of Germany’s leading steel and technology groups, are joining forces to radically decarbonise steel production in Germany using the power of the sun.

The agreement will see Octopus - which manages a €7bn portfolio of green energy projects - supply Salzgitter with 126,000 MWh of clean electricity per year from the Schiebsdorf solar farm in Brandenburg.

The deal between the two companies supports Salzgitter’s pioneering low CO2 steelmaking programme. This aims to reduce carbon emissions of Germany’s steelmaking sector, currently responsible for about 28% of the country’s industrial emissions*.

This will secure more clean electricity for Salzgitter, giving it certainty over electricity costs whilst enabling it to produce steel with a minimal carbon footprint.

Salzgitter plans to use an electrolyser to harness the energy from Octopus’ solar farm to produce green hydrogen, replacing fossil fuels in the steel production process.

The long-term agreement will start later this year once the solar farm becomes operational and will last for 10 years.

Octopus acquired Schiebsdorf solar farm last month, on behalf of the Sky fund (ORI SCSp). It’s the largest solar farm in the firm’s growing energy portfolio in Germany and globally.

It comes as Octopus supercharges its green energy activity in Germany, with plans to channel more than €1 billion into German clean energy infrastructure by 2027.

Octopus entered Germany’s renewables market last year, and has backed seven projects, including solar farms, onshore and offshore wind farms - with more already in the pipeline.

Alex Brierley, co-head of Octopus Energy Generation’s fund management business, said: “This partnership with Salzgitter is a significant leap towards decarbonising heavy industry and propelling Germany’s clean energy transition. Germany’s shift to net zero has many huge opportunities to get involved, and we’re geared up to announce more deals very soon.”

Ralph Schaper, Head of Salzgitter AG’s Energy Economy Department said: “As we work towards our strategic emissions reduction goal, this latest PPA adds another significant source of clean electricity to power our operations, create green hydrogen and ultimately produce greener steel for our customers. Octopus, with its extensive track record in European renewable energy, is an ideal long-term partner for us.”

-ENDS-

Notes to editors:

Sources:

*Germany steel production % of industrial emissions, Salzgitter

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About Octopus Energy Generation

Octopus Energy Generation is driving the renewable energy agenda and building green power for the future. This means reshaping the market by leading the transition to a cleaner, greener future through renewable projects connected more deeply to customers and businesses.

As one of Europe’s largest investors in renewable energy, its fund management specialist team launched in 2010 with a mission to accelerate the transition to a future powered by renewable energy. This team manages 3.2 GW of renewable energy projects like wind and solar farms across 17 countries, worth £6bn. These projects generate enough green energy to power 2 million homes every year, and is the equivalent of taking over 1 million petrol cars off the road. The business also launched the Fan Club, the world's first local energy tariff that provides cheaper, greener energy to customers living near local turbines when it’s windy, with a discount of up to 50%.

For more information, check out our website.

About Octopus Energy

Octopus Energy is a global clean energy tech business, driving the affordable, green energy system of the future. Under its own retail brand, Octopus delivers world-class customer service and cutting edge energy products to 7.7 million households globally.

Its operations span 18 countries and the entire energy value chain. The group invests in, builds and flexibly manages renewable energy, operating a £6 billion portfolio of projects – one of Europe’s largest.

Octopus has licensed its advanced data and machine learning platform, Kraken, to support over 54 million customer accounts worldwide through licensing deals with companies such as EDF, E.ON and Origin Energy.

Kraken enables Octopus to drive the electrification of heat and transport through smart tariffs and innovative cleantech. Backed by pension funds, investors and energy giants, Octopus Energy Group businesses deliver cheaper, greener energy and cutting-edge tech to countries and customers worldwide.

For more information, check out our website.