Thyssenkrupp Steel Secures 230 GWh of Green Power via PPAs and Advances the Decarbonization of Steel Production
Duisburg (Germany) - Thyssenkrupp Steel is strengthening its energy and transformation strategy: With four new power purchase agreements (PPAs) totaling around 230 GWh, the steel producer is securing green electricity from wind and solar power plants in Germany. The contracts support the gradual decarbonization of steel production.
Green Power PPAs as a Building Block of the Decarbonization Strategy
Thyssenkrupp Steel has concluded four green electricity supply contracts with a total volume of approximately 230 GWh (230 million kWh). Under these power purchase agreements, the steel group sources electricity from wind and photovoltaic plants that generate renewable power at various locations across Germany. The off-takers are the subsidiaries Thyssenkrupp Rasselstein, Thyssenkrupp Precision Steel, and Thyssenkrupp Electrical Steel.
According to the company, the contract volume corresponds to the electricity consumption of around 70,000 households. The supplies come from relatively new PV plants as well as from post-EEG onshore wind farms. As a result, more than 70,000 tons of CO2 emissions are expected to be avoided annually. At the same time, the agreements enable the continued economic operation of wind farms that no longer receive EEG subsidies.
CFO Philipp Conze places the agreements in a strategic context:
“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 new contracts complement existing measures to improve energy efficiency and to gradually transform steel production. For Thyssenkrupp Steel, secured access to renewable energy is crucial, as electricity demand will continue to rise in the course of the transformation.
Supplying Sites and Rising Electricity Demand
Since the beginning of the year, the Thyssenkrupp Steel subsidiaries Thyssenkrupp Rasselstein and Thyssenkrupp Electrical Steel in particular have been supplied with green electricity. In addition, the Thyssenkrupp Steel subsidiary in Hohenlimburg has been sourcing green power from a neighboring wind farm in Hagen-Hohenlimburg since summer 2024. This is the first project nationwide involving the direct supply of a German industrial company from a wind farm. A three-kilometer cable feeds the green electricity generated by the wind farm directly into the plant network of Thyssenkrupp Hohenlimburg.
All three TkS subsidiaries now source at least 30 percent of their electricity from renewable energy. This is of particular importance for the packaging steel manufacturer Thyssenkrupp Rasselstein. CEO Clarissa Odewald explains: “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.”
From an energy management perspective, the PPAs are also an intermediate step. Dennis Becher, Head of Energy Management at Thyssenkrupp Steel, points to the growing demand: “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.”
Decarbonization of Steel Production Increases Electricity Demand
In the long term, Thyssenkrupp Steel is focusing on the construction of a hydrogen-capable direct reduction plant as the core of its decarbonization efforts. These climate-friendly technologies go hand in hand with a significantly increased demand for electricity and renewable energy. Expanding energy efficiency and sourcing green power via PPAs are therefore key levers to reduce CO2 emissions today and to drive forward industrial transformation.
Source: IWR Online, 09 Feb 2026