(Madrid / Spain) – Hydnum Steel SL has secured an investment commitment of €150 million for the construction of a steel plant. The financier is Cofides (Compañía Española de Financiación del Desarrollo), a Spanish state-owned company for the promotion of economic projects.
Rendering of the future steel plant, which will operate without blast furnaces using fossil fuels. © Hydnum Steel Ltd.
The plant in Puertollano, in the province of Ciudad Real (autonomous region of Castile-La Mancha), is reportedly "the first clean steel plant on the Iberian Peninsula." Its CO2-free production process is based on the use of an electric arc furnace, green hydrogen, and renewable energy. In February, the company announced that it had secured access to the power grid at the Brazatortas interchange in the province of Ciudad Real, providing a capacity of 500 megawatts. This is sufficient "to ensure the supply of its electric arc furnace."
Steel production without fossil fuels is expected to save 98 percent CO2 compared to conventional production. © Hydnum Steel Ltd.
Fossil fuels would be "completely eliminated." CO2 emissions would be reduced by 98 percent compared to conventional steel production. The plant will be fully digitized and equipped for the regeneration and reuse of urban and industrial wastewater. Initial permits have already been granted. Furthermore, public consultations have taken place, and the regional government of Castile-La Mancha has declared the project a "Project of Exceptional Interest" (PSI).
It is supported by a consortium consisting of the Spanish company Russula (engineering and mechanical engineering), the German Siemens AG (digitalization, automation and cybersecurity), the Spanish independent power producer ABEI Energy (renewable energy generation and green hydrogen) and the British Primetals Technologies Ltd. (provider of metallurgical technologies and subsidiary of Mitsubishi Heavy Industries Ltd.).
The company plans to begin construction by the end of this year on the project, which was already announced in 2023. Once completed, annual production will reach 2,7 million tons. The various construction phases will create 5.000 jobs and mobilize investments of more than €1,5 billion, including €600 million in equity.
Thyssenkrupp sources 100.000 tons annually.
According to Hydnum Steel, agreements have already been reached that fully secure sales during the first five years of operation. Customers include Thyssenkrupp Materials Processing Europe. According to an announcement from April 2025, the German company will initially be supplied with up to 100.000 tons of low-carbon flat steel annually from Puertollano for a period of seven years. Thyssenkrupp Materials states that it has processing facilities throughout Europe and supplies a wide range of customers, including those in the automotive, construction, and household appliance industries.
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Hydnum Steel will begin construction this year on a new plant in Puertollano that will produce steel using hydrogen and renewable energy. © Hydnum Steel Ltd.
