Salzgitter Partners with Zelestra to Power Low-Carbon Steel Production

German steelmaker Salzgitter has partnered with renewable energy company Zelestra in a green power agreement aimed at supporting the production of low-carbon steel. The agreement strengthens Salzgitter’s strategy to increase the use of renewable electricity across its steelmaking operations as the company works to reduce carbon emissions from traditional production processes. Green electricity is a key part of Salzgitter’s SALCOS (Salzgitter Low CO₂ Steelmaking) transformation programme, which is shifting steel production toward electricity- and hydrogen-based technologies. The initiative is designed to replace carbon-intensive blast furnace processes with direct reduction and electric arc furnace technology. The partnership with Zelestra adds to Salzgitter’s growing portfolio of renewable power agreements, helping secure cleaner electricity for its future steel production requirements. As European steelmakers face increasing pressure to decarbonize, access to reliable renewable energy is becoming critical for green steel production. Long-term power purchase agreements can also provide greater energy cost visibility while supporting investment in new renewable capacity. The Salzgitter-Zelestra agreement highlights the growing connection between the renewable energy and steel industries as producers accelerate efforts toward lower-emission manufacturing.