thyssenkrupp Steel has signed four new Power Purchase Agreements (PPAs) to secure around 230 GWh of green electricity for its subsidiaries, marking another step in its efforts to further decarbonize steel production. The agreements were concluded with Quadra Energy, Statkraft, Centrica Energy, and Sunnic Lighthouse, covering a portfolio of wind and solar (PV) installations located across Germany. Securing renewable electricity for subsidiaries including thyssenkrupp Rasselstein, thyssenkrupp Precision Steel and thyssenkrupp Electrical Steel is a key part of the company’s energy and transformation strategy.
Philipp Conze, Chief Financial Officer (CFO) of thyssenkrupp Steel, emphasizes the strategic importance of the agreements:
“In concluding the new green power supply contracts, we are advancing our transformation toward CO₂-reduced production. PPAs for electricity are an indispensable component of our decarbonization strategy.”
The contract volume of approximately 230 GWh corresponds to the typical annual electricity consumption of around 70,000 households. The green power will be sourced from newly commissioned solar PV installations and onshore wind farms in Germany that are no longer receiving state subsidies. In addition to avoiding more than 70,000 metric tons of CO₂ emissions annually, these purchases also help keep unsubsidized wind farms economically viable.
Renewable Power for Key Production Sites
Since the beginning of the year, green electricity has been supplied mainly to thyssenkrupp Rasselstein and thyssenkrupp Electrical Steel. Additionally, thyssenkrupp Steel’s Hohenlimburg subsidiary has been sourcing green power from a nearby wind farm in Hagen-Hohenlimburg since summer 2024 — the first project in Germany where power is supplied directly from a wind farm to an industrial company. A dedicated three-kilometer cable feeds the generated wind power into the Hohenlimburg plant network.
As a result of these agreements, at least 30 % of the electricity used at the three tkS subsidiaries will come from renewable sources. This enables even more sustainable production of high-quality steel grades used in packaging, transformers, electric motors and precision applications.
Clarissa Odewald, CEO of thyssenkrupp Rasselstein, highlights the impact:
“Sustainability plays a major role for thyssenkrupp Rasselstein and our customers. Thanks to the new green power supply contracts, we can now save over 50,000 metric tons of CO₂ emissions per year.”
Dennis Becher, Head of Energy Management at thyssenkrupp Steel, adds:
“We are delighted about the partnerships with Quadra Energy, Statkraft, Centrica Energy, and Sunnic Lighthouse. The four new Power Purchase Agreements mean we are further expanding our green electricity portfolio. As thyssenkrupp Steel Europe advances its green transformation, our electricity consumption will rise significantly in the years ahead, driving the need for additional green power supply agreements.”
Growing Electricity Demand as Transformation Continues
thyssenkrupp Steel’s goal remains the gradual and sustained decarbonization of its steel production. A key element of this transformation strategy is the construction of a hydrogen-capable direct reduction plant, which will significantly increase electricity demand in the coming years. Given that climate-friendly technologies come with a substantially higher need for renewable energy, expanding energy efficiency and renewable sourcing continues to be a crucial success factor. Procuring green electricity via PPAs is one of the measures already helping to reduce CO₂ emissions and support industrial transformation.
