A long-term framework agreement creates the basis for joint projects in the areas of energy supply, hydrogen, battery storage, expansion of renewable energy and flexibility marketing.

 

Voestalpine AG and VERBUND are further expanding their long-standing collaboration. With the signing of an extended framework agreement, both companies reaffirm their shared goal of actively driving the transformation of industry and energy systems. The agreement forms the basis for the implementation of concrete projects and cooperation in the areas of renewable energy supply and hydrogen.

 

The partnership between voestalpine and VERBUND dates back more than a decade. Building on the Memorandum of Understanding signed in 2015 and its extension in 2023, the collaboration is now being taken to a new level.

 

“The transformation of industry can only succeed together. We have a long-standing and trusting partnership with voestalpine. The extended framework agreement creates the basis for the rapid implementation of innovative energy and infrastructure projects and for the further development of a sustainable, competitive, and climate-friendly supply for energy-intensive industries. Together, we are developing solutions that strengthen Germany as an industrial location and meet the diverse requirements of individual sites,” said Michael Strugl, CEO of VERBUND AG.

 

Strong partnership for a competitive industrial location

The expanded partnership focuses on the long-term energy supply of voestalpine's sites and the joint development of innovative infrastructure and energy solutions. This includes site-specific projects for the use of renewable energies as well as solutions for hydrogen, energy storage, and flexibility marketing. Different supply concepts are being pursued depending on the location and the existing technical infrastructure. The globally active steel and technology group has a clear strategy for transforming its steel production with greentec steel. As a first step, the group will reduce its CO2 emissions by more than 30% by 2029. This corresponds to approximately 5% of Austria's CO2 emissions.

 

Franz Kainersdorfer, member of the Management Board of voestalpine AG and head of the Metal Engineering Division, says: “With VERBUND, we have a strong and reliable partner at our side, with whom we are working together on solutions for a secure, economical and sustainable energy supply. This closer cooperation is an important step towards the long-term success of our greentec steel transformation project.”

 

In parallel, the successful collaboration in the field of hydrogen will continue. The H2FUTURE hydrogen pilot plant, built at the voestalpine site in Linz in 2019 – and thus the longest-running hydrogen pilot plant of its kind worldwide – will be further developed with regard to the production, storage, loading, and further use of green hydrogen. At the same time, both companies are working on a long-term roadmap for supplying several voestalpine sites with green hydrogen.

 

Storage solutions and renewable energy for a climate-ready industry

 

VERBUND and voestalpine also intend to further deepen their collaboration in the areas of flexibility and energy storage. The implementation of battery storage projects at the Kindberg and Donawitz sites is being examined. Furthermore, additional potential at other locations in Germany is being investigated. Battery storage makes a significant contribution to the integration of renewable energies, increases flexibility in the energy system, and strengthens the security of supply for industrial processes.

 

Building on successfully implemented projects, both companies also intend to explore further opportunities for expanding renewable energy generation at suitable locations. In recent years, they have jointly implemented photovoltaic systems, including installations at voestalpine Tubulars in Donawitz and at voestalpine Wire Rod. Furthermore, they are examining additional cooperation opportunities, such as long-term power purchase agreements (PPAs) for renewable energy sources, the expansion of further photovoltaic systems, and innovative hedging and marketing models.

 

“Anyone who wants to secure Europe’s industrial future must also rethink energy supply. This is precisely where we are focusing our efforts together with voestalpine. We are shaping an energy system that combines renewable energy, hydrogen, storage, and intelligent management into a high-performance, integrated system that adapts and grows with the times. In this way, energy becomes a strategic lever for decarbonization, innovation, and industrial competitiveness. Together, we want to set standards for this – for industry, for Austria, and for Europe’s future,” explains Susanna Zapreva, Member of the Management Board and Chief Renewables Officer (CRO) of VERBUND AG.

 

The collaboration also creates important prerequisites for the next steps towards greentec steel. “For greentec steel, we need long-term availability of renewable energy, high-performance infrastructure, and innovative technologies. The collaboration with VERBUND creates important prerequisites for this and supports us in consistently driving forward the next steps in the transformation of our steel production at the respective sites,” said Hubert Zajicek, Member of the Executive Board of voestalpine AG and Head of the Steel Division.

 

The framework agreement runs until the end of 2029 and creates a binding framework for the joint development and implementation of forward-looking projects and underlines the joint commitment of voestalpine and VERBUND to innovation, security of supply and a sustainable energy supply for industry.

 

Source:   FCW Team