Hütte South Substation: Go-ahead for Key Project to Achieve CO2-free Economy in the Future

In addition to the hosts Gerhard Christiner (CTO) and Thomas Karall (CFO) of APG, Markus Achleitner, member of the Upper Austria’s provincial government and responsible for economic affairs and energy, Stefan Kaineder, member of the Upper Austria’s provincial government and responsible for environment and climate, Helmut Gruber, member of the management board of the steel division of voestalpine AG, the two managing directors of Netz Oberösterreich GmbH (Netz OÖ) Manfred Hofer and Michael Haselauer, and the managing directors of LINZ NETZ GmbH (Linz Netz) Johannes Zimmerberger and Jörg Mittendorfer, attended the groundbreaking ceremony.

Approximately 80 million euros will be invested in the expansion of the Hütte Süd substation and thus in the success of the energy transition. This is part of APG's 3.5 billion euro investment program up to 2032, as well as an important component of the project cluster ‘Central Upper Austria’ which is a joint effort of all project partners involved.

To ensure an uninterrupted secure supply of electricity and operation during the construction work, a lot of effort is being put in establishing elaborate makeshift high-voltage facilities. Other measures include the construction of a new operations building, a new 220 kV switchgear, and the delivery of a total of three 220/110 kV transformers (including an appropriate fire-extinguishing system) by means of heavy-duty transport. The construction phase will start in 2023, and the substation is scheduled to start operation at the end of 2026.

Element of the project “Secure Power Supply” in the central region of Upper Austria".

The substation Hütte Süd is also an essential element of the joint project "Secure Power Supply Central Upper Austria" of APG, Netz OÖ and Linz Netz, which will make the central region of the province fit for the future, especially with regard to capacity requirements. However, from a legal point of view the expansion of the substation is not part of the pertinent EIA process, which was concluded with a positive decision from the authorities about two weeks ago.
"The expansion of the power grids is essential for the further supply-secure decarbonization of the entire energy system. As new 220/110 kV grid hub, the substation will not only facilitate the security of supply in the region but also serve as direct feed-in point for the steel industry based in Linz, and thus provide an important contribution to achieving the set goals, which are not only important for Austria’s economy but also for the region as business location. The grid expansion in the "Central Region of Upper Austria" will be a visible sign of the energy transition and benefit this booming region of Upper Austria as attractive place to live and business location for decades to come," says Gerhard Christiner, CTO of APG.

"A comprehensive investment scheme to expand and modernize the grid infrastructure in Upper Austria will ensure that the electricity supply will be able to live up to the challenges resulting from the decarbonization of businesses, industry, households and mobility. At the same time, it will ensure that the growing volumes of electricity generated from renewable and decentralized energy sources can be fed into the grid. Approximately 1,350 projects concerning all voltage levels are currently in their planning stage or are already being implemented in Upper Austria. By 2032 approximately 1.7 billion euros will be invested in projects (which are all part of the 'OÖ. Stromnetz-Masterplan 2032') concerning the extra-high voltage grid alone. The upgrading of the Hütte Süd substation is a central element with regard to the restructuring of the connection to the transmission grid of the entire central region of Upper Austria. This project will facilitate the transformation of the electricity grid, which is our lifeline, and make it fit for the future," emphasizes Markus Achleitner, member of the Upper Austria’s provincial government and responsible for economic affairs and energy.

"The new Hütte Süd substation is an essential component of the new supply ring in Upper Austria’s central region. In addition to the decommissioning of Upper Austria's fossil-fuel power plants in the long run, it will also facilitate the conversion of voestalpine's steel production from fossil-fuelled blast furnaces to electric arc furnaces. The new transmission line will ensure the security of supply for many decades and is a further milestone regarding the potentials of integrating energy from renewable sources such as PV into the grid, or preventing blackouts and guaranteeing the security of supply. With the future upgrade of the power lines, we are being given a fresh heart in the central region of our province that will pulsate for generations to come," says Stefan Kaineder, member of the Upper Austria’s provincial government and responsible for environment and climate, who is delighted about the start of the construction work.

Helmut Gruber, member of the management board of the steel division of voestalpine AG: "As voestalpine, we are planning to replace a blast furnace in Linz with an electric arc furnace by 2027. This requires renewable energies which, in turn, necessitates an adequate infrastructure expansion. The construction of the 220 kV line is an essential element to facilitate a successful implementation of our plans at the Linz site."

Prerequisite for secure power supply in the region

The new Hütte Süd substation in itself, but above all the overall "Secure Power Supply Central Upper Austria" project, is a prerequisite for the further expansion of the distribution grid and thus for a secure power supply in the region.

Manfred Hofer, managing director of Netz Oberösterreich GmbH: "The entire project is of particular importance for Upper Austria because we, as distribution grid operators, will benefit from the newly created capacities at all voltage levels. According to the principle of resource-efficient project planning and teamwork it makes sense, especially in the central region, that line sections of all grid operators are bundled on one route. Netz Oberösterreich supports the goal of the joint project by providing a total of 18 kilometers of line route."

Johannes Zimmerberger, managing director of LINZ NETZ GmbH: "The expansion of the grid infrastructure which is able to meet the demands of future generations is an inevitable precondition for a sustainable and renewable energy future. In an increasingly electrified society, the power grid is the foundation on which major energy transition projects can build on. Particularly in the industrial city of Linz, a secure power supply and a future-proof grid infrastructure are of central importance for a positive development of the region as place to live and business location. LINZ NETZ GmbH is pleased to be part of this extraordinary large-scale project to pave the way for a climate-neutral future of the region in and around Linz."

About Austrian Power Grid (APG)

As independent transmission system operator Austrian Power Grid (APG) is in charge of ensuring the security of electricity supply in Austria. With our high-performance and digital electricity infrastructure and the use of state-of-the-art technologies we integrate renewable energies, we are the platform for the electricity market, we provide access to reasonably priced electricity for Austria’s consumers and thus create the basis for Austria as supply-secure industrial and business location and place to live. The APG grid totals a length of about 3,400 km and is operated, maintained and continuously adapted to the increasing challenges of the electrification of businesses, industry and society by a team of approximately 733 specialists. Also in 2022 Austria had a security of supply of 99.99 percent and thus ranks among the top countries worldwide. Our investments of 490 million euros in 2023 (2022: 370 million euros) are a motor for the Austrian economy and a crucial factor in reaching Austria’s climate and energy targets. Until 2032 APG will invest a total of approximately 3.5 billion euros in grid expansion and renovation projects, which amounts to approximately 19 percent of the total of 18 billion euros which the energy industry will invest in the grid infrastructure over the next ten years.

About Netz Oberösterreich GmbH

Netz Oberösterreich GmbH is the electricity grid operator for large parts of Upper Austria and for parts of the neighboring provinces of Salzburg, Styria and Lower Austria. Around 650 employees ensure a safe and secure grid operation 24/7. The electricity grid covers more than 33,000 kilometers at all voltage levels. 61 substations and switching stations ensure the security of electricity supply, and more than 517,000 customer installations are supplied via 9,200 transformer stations. More than 750,000 smart meters and switching devices are installed in the customer installations. Netz Oberösterreich GmbH is a full subsidiary of Energie AG Oberösterreich.

About LINZ NETZ GmbH

LINZ NETZ GmbH operates the electricity grid and natural gas network for the Linz area and parts of the Mühlviertel region. With a team of about 280 specialists, the company ensures the expansion in the electricity sector to facilitate the energy transition, as well as the safe operation and maintenance of the 8,355-kilometer distribution grid.
28 substations and around 3,300 transformer stations ensure a sustainable supply of electricity. The smart meter roll-out is well advanced. More than 240,000 smart meters already form the basis for new energy systems in the supply area. The electricity grid for Linz and 82 surrounding communities reliably covers the regional electricity demand of more than 400,000 customers and enables the positive development of this vibrant living and economic area. LINZ NETZ GmbH is a full subsidiary of LINZ AG.
About the Steel Division of voestalpine AG
As a global manufacturer of high-quality steel products, the Steel Division of the voestalpine Group assumes a driving role in shaping a clean and livable future. While using conventional steelmaking technologies, the division has set benchmarks in the current production route and is now pursuing an ambitious step-by-step plan to achieve climate-neutral steel production with its greentec steel. In a first step, the Steel Division supplies each flat steel product in a CO2-reduced greentec steel edition and is working on the implementation of climate-friendly production technologies based on green electricity and hydrogen. Renowned automotive manufacturers and component suppliers rely on the highest-quality steel strip manufactured in the division as well as on the customer support that it provides on a global basis. The Steel Division is one of the most prominent partners to the European house and machinery industries. The Division manufactures heavy plates and cast products for applications under the most difficult conditions in the energy industry and provides customized solutions for the expansion of renewable energy. In the business year 2021/22 the division achieved a revenue of €5.7 billion, earnings before interest, taxes, depreciation and amortization (EBITDA) of €1.2 billion and employed around 10,700 people worldwide.