Iberdrola signs solar PPA with Italian steel producer Acciaierie Venete

Spanish energy company Iberdrola has signed a 12MW off-site Power Purchase Agreement (PPA) with steel producer Acciaierie Venete Spa.

Under the agreement, Iberdrola will supply solar power for a period of 10 years, totaling 230GWh.

The energy supplied will help reduce annual CO2 emissions by around 6,960 tonnes.

Annually, Acciaierie Venete plants produce 1.8 million tonnes of steel and the company is focused on improving energy efficiency and reducing emissions associated with its production processes.

"This partnership with Iberdrola is consistent with our commitment to sustainability," commented Francesco Semino, CSO of Acciaierie Venete Spa, "and should be seen as part of a decarbonisation process that aims to reduce specific CO2 emissions by more than 50% by 2030".

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Added Lorenzo Costantini, sales director of Iberdrola Italia: "This PPA represents another step in our strategy aimed at promoting the use of energy from renewable sources among industrial partners, thus supporting the energy security of our country."

Iberdrola stands out as a leading European player in the fast growing PPA market, with almost 1,000 MW signed in 2023, according to Pexapark's European PPA Market Outlook 2024.

Industry turning green

A growing number of industrial players are turning to on-site clean energy or renewable PPAs to lower their carbon footprint.

This week CRH, global provider of building materials solutions, announced its new wind farm at the Medgidia Cement Plant in Romania is operational. The plant will meet a significant proportion of the Medgidia Plant’s annual energy requirements, helping to lower the carbon footprint of the products it produces.

Mars Petcare facility at Wodonga in Victoria, Australia, announced plans in October to become a large-scale steam-based manufacturing site operating entirely on renewable energy by 2026.  

In partnership with Australian national science agency CSIRO, the facility plans to switch to 100% renewable power which will include solar and thermal energy technologies and hydrogen.

In India, Suzlon Group confirmed an order with JSP Green Wind for a 400MW wind project in the steel-rich Koppal region of Karnataka, India. The power generated will power local steel plants in Chhattisgarh and Odisha, advancing decarbonisation of energy in the region.

And earlier this year, German steel manufacturer Salzgitter Flachstahl signed a 10-year power purchase agreement with Octopus Energy Generation. Under the agreement, Salzgitter Flachstahl is to be supplied with 126,000MWh of clean energy per year generated from Octopus’ Schiebsdorf solar farm in Brandenburg.