2023-08-25 18:06:12
An agreement signed with the multinational Shell will make it possible to guarantee the supply of renewable energy in the two electric steel mills that ArcelorMittal has in the Basque Country, the one in Sestao (Bizkaia) and the one in Olaberria (Gipuzkoa). The measure, which will allow the steel group to meet its growing demand in Spain, will cover all production facilities including its future electrical installation in Gijón, announced two years ago.
The sustainability report that the company has prepared in Spain includes the signing of a ‘Power Purchase Agreement’ (PPA) contract, an agreement that ensures the long-term sale of energy between a renewable developer (Shell) and a consumer (AcelorMittal) . The contract contemplates an annual volume of 200 GWh during a supply period that will begin on January 1, 2025 and end on December 31, 2023. This type of agreement helps to offer lower prices than those offered in the market for the green electricity, while developers of wind farms and photovoltaics secure the purchase of that generation and obtain easier financing for their installations. In these agreements, there is often a time lag between the signing of the contract and the expected supply period, such as the one recorded on this occasion.
To cover this wait, the agreement includes a bridging period with which to attend to the steel group until the new contract is launched. Thus, from April 1 to December 31 of next year, Shell will provide ArcelorMittal plants with more than 156,000 GdOs -acronyms for Guarantees of Origin Management-, an instrument that ensures the origin of the energy sold to from renewable sources and high-efficiency cogeneration. These will provide the steelmaker with access to sufficient backing to accredit the products it markets under its green steel brand, Xcarb, until the agreement enters into force.
previous contract
ArcelorMittal had a previous contract with Endesa for four years that came to an end on June 30. Thanks to him, it came supplying the energy demanded by its factories. As will happen with the new agreement, the previous agreement did not allow supplying all the needs of the steel company when the weather conditions are affected.
“The proposed decarbonization objectives require us to seek solutions and contracts that allow us to reach 30% of energy from renewable sources before 2027, which will increase with the needs for renewable supply for the new facilities planned in Asturias,” ArcelorMittal highlighted in its report. of sustainability.
The contract will come to solve the problems that the volatility of the current electricity market had been causing in facilities such as the one in Sestao, ACB (Acería Compacta de Bizkaia), which has been marked by irregularities for years since its stoppage is ordered each time the electricity bill the light threatens to run wild. This agreement would make it possible to guarantee a competitive price in the long term, while ensuring a renewable source of energy.
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