VERBUND and voestalpine are strengthening their strategic partnership focusing on the industrial energy supply and transformation

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

voestalpine AG and VERBUND are further expanding their long-standing partnership. By signing an extended framework agreement, the two companies have reaffirmed their shared goal of actively driving forward the transformation of industry and energy systems. The agreement forms the basis for implementing specific projects and for collaboration 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.

“Industrial transformation can only succeed if we work together. 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,” said Michael Strugl, CEO of VERBUND AG.

A 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. These include site-specific projects for the use of renewable energy, as well as solutions for hydrogen, energy storage and flexibility marketing. Different supply concepts are being pursued depending on the site and the initial technical situation. With greentec steel, the global steel and technology Group has a clear strategy for transforming its steel production. As a first step, the Group will cut more than 30% of its carbon emissions by 2029. This corresponds to around 5% of Austria’s carbon emissions.

Franz Kainersdorfer, member of the Management Board of voestalpine AG and head of the Metal Engineering Division, said, “VERBUND is a strong and reliable partner with whom we are working to develop solutions for a secure, profitable and sustainable energy supply. This closer collaboration is an important step towards the long-term successful implementation of our greentec steel transformation project.”

The successful collaboration in the hydrogen segment is also set to continue. The H2FUTURE hydrogen pilot plant – which began operating in 2019 at voestalpine’s site in Linz and is the world’s longest-running hydrogen pilot plant of its kind – is being further developed in terms of production, storage, loading and subsequent use of green hydrogen. At the same time, the two companies are working on a long-term roadmap for supplying green hydrogen to a number of voestalpine sites.

Storage solutions and renewable energy for climate-resilient industry

VERBUND and voestalpine also intend to further strengthen their collaboration in the areas of flexibility and energy storage. The implementation of battery storage projects at the Kindberg and Donawitz sites is being assessed. In addition, further potential at locations in Germany is being investigated. Battery storage facilities make an important contribution to the integration of renewable energy, increase flexibility in the energy system and strengthen the security of supply for industrial processes.

Building on projects that have already been successfully implemented, both companies also plan to explore other opportunities for expanding renewable energy generation at suitable sites. In recent years, they have jointly installed photovoltaic systems, including those at voestalpine Tubulars’ Donawitz site and at voestalpine Wire Rod. In addition, further opportunities for cooperation are being considered, such as long-term power purchase agreements (PPAs) for renewable energy, the expansion of further photovoltaic systems and innovative hedging and marketing models.

“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. 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 decarbonisation, innovation and industrial competitiveness. We want to set new standards for this together – for industry, for Austria and for Europe’s future,” explained Susanna Zapreva, member of the Executive Board and chief renewables officer (CRO) at VERBUND AG.

This collaboration also lays the groundwork for the next steps towards greentec steel. “For greentec steel, we need renewable energy with long-term availability, high-performance infrastructure and innovative technologies. 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,” said Hubert Zajicek, member of the Management Board of voestalpine AG and head of the Steel Division.

The framework agreement runs until the end of 2029 and establishes a binding framework for the joint development and implementation of forward-looking projects. It also underlines voestalpine’s and VERBUND’s shared commitment to innovation, supply security and a future-proof energy supply for industry.