Verbund, Voestalpine Extend Energy Partnership Through 2029

Verbund AG and Voestalpine AG have signed an extended framework agreement covering industrial energy supply and transformation, building on a memorandum of understanding the two Austrian companies first signed in 2015 and extended in 2023. The new agreement runs through the end of 2029 and sets a binding framework for jointly developing and implementing energy and infrastructure projects.

The partnership covers the long-term energy supply of Voestalpine’s sites, including renewable energy, hydrogen, battery storage, and flexibility marketing, with the specific approach varying by site and existing technical conditions. Under its greentec steel strategy for transforming steel production, Voestalpine aims to cut its carbon emissions by more than 30% by 2029, a reduction equal to about 5% of Austria’s total carbon emissions.

“Industrial transformation can only succeed if we work together,” said Michael Strugl, chief executive officer (CEO) of Verbund AG. “We have a long-standing and trusting partnership with Voestalpine. The extended framework agreement lays the foundation for rapidly implementing innovative energy and infrastructure projects and developing a sustainable, competitive and climate-friendly energy supply for energy-intensive industry. Together, we are developing solutions that strengthen the industrial location and meet the diverse requirements of the individual sites.”

Franz Kainersdorfer, a member of Voestalpine AG’s management board and head of its metal engineering division, said the deepened collaboration supports that effort. “Verbund is a strong and reliable partner with whom we are working to develop solutions for a secure, profitable and sustainable energy supply,” he said. “This closer collaboration is an important step towards the long-term successful implementation of our greentec steel transformation project.”

The companies’ hydrogen collaboration will also continue. The H2future pilot plant, which began operating in 2019 at Voestalpine’s Linz site and which the companies describe as the world’s longest-running hydrogen pilot plant of its kind, is being expanded to develop further production, storage, loading, and downstream use of green hydrogen. Verbund and Voestalpine are also developing a long-term roadmap to supply green hydrogen to several voestalpine sites.

The two companies are also assessing battery storage projects at voestalpine’s Kindberg and Donawitz sites, as well as at other potential locations in Germany. Battery storage supports the integration of renewable energy, adds flexibility to the energy system, and strengthens supply security for industrial processes.

“Anyone wanting to secure Europe’s industrial future also needs to rethink the energy supply. This is precisely where we step in together with Voestalpine,” said Susanna Zapreva, a member of Verbund AG’s executive board and its chief renewables officer. “We are designing an energy system that combines renewable energy, hydrogen, storage and smart management to create a high-performance integrated system that anticipates needs and grows with us. In this way, energy becomes a strategic lever for decarbonization, innovation and industrial competitiveness. We want to set new standards for this together, for industry, for Austria and for Europe’s future.”

Verbund and Voestalpine have already jointly installed photovoltaic systems at voestalpine Tubulars’ Donawitz site and at voestalpine Wire Rod, and the companies plan to pursue additional renewable energy projects at suitable sites. They are also considering long-term power purchase agreements (PPAs) for renewable energy, further photovoltaic expansion, and new hedging and marketing models.

“For greentec steel, we need renewable energy with long-term availability, high-performance infrastructure and innovative technologies,” said Hubert Zajicek, a member of Voestalpine AG’s management board and head of its steel division. “Our collaboration with Verbund creates the necessary conditions for this and helps us to move forward consistently towards transforming our steel production at the respective sites.”