Germany's GMH Group seals solar PPA to power steel plant

German steel supplier GMH Group will procure electricity from an 8.13-MW solar park in Lower Saxony to power its electro-steel plant in the town of Georgsmarienhuette.

The green electricity will be supplied from the Burhafe solar farm under a power purchase agreement (PPA) with energy company EWE, GMH said in a press release. The solar park, located near the city of Wittmund, was connected to the grid in November 2020.

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The deal with EWE will boost the renewable share in the plant's electricity mix to about 30%. Part of the facility's power needs is already covered with wind energy.

Commenting on the deal, GMH's chief executive Alexander Becker said that the off-take contract gives the group access to sustainable solar power in proximity to the electro-steel plant in Georgsmarienhuette. It supports the steel supplier's sustainability strategy and brings the group a step closer to its goal of halving carbon dioxide emissions by 2030, he added.

GMH's business in Georgsmarienhuette manufactures cast ingots from high-grade crude steel, blooms and billets as well as rolled steel bar.