- Swiss Steel Group to purchase hydropower from Axpo Holding.
- The agreement with Axpo gives Swiss Steel Group security for long-term planning regarding electricity costs.
Swiss Steel Group will purchase hydropower from renewable energy provider Axpo Holding AG to power an exclusive steel factory in central Switzerland with green electricity. The power will be sent to the Steeltec factory in Emmenbruecke, canton of Lucerne, under a power purchase agreement (PPA) that will last until 2024, the two firms said on Tuesday. The power will be generated by Swiss hydropower units in Axpo’s portfolio.
The conversion to hydropower would further reduce the steel mill’s carbon footprint, which produces 63 kg of carbon dioxide to manufacture one tonne of crude steel, compared to an industry average of 1,890 kg of greenhouse gas emissions. In addition to supporting its sustainability efforts, the agreement with Axpo will give Swiss Steel Group security for long-term planning regarding electricity costs.
“We see strong demand for electricity from hydropower and other renewable energies in Switzerland and throughout Europe. Indeed, awareness is growing across many industries of production processes that result in lower CO2 emissions,” said Axpo Head of Origination Switzerland Laurent Nanzer.
The Lucerne-based steel maker noted that its steel mill in Canada and bright steel production in Dusseldorf, Germany, rely entirely on green power to produce steel.