Hydnum Steel secures a €150 million investment commitment from COFIDES to build the Iberian Peninsula's first clean steel plant

The facility will be the first clean steel plant in the Iberian Peninsula, with an annual production of 2.7 million tonnes and a 98% reduction in its carbon footprint compared to conventional steelmaking processes

The project will mobilise over €1.5 billion in overall investment and generate more than 5,000 jobs, establishing itself as a key driver for the reindustrialisation and strengthening of the strategic autonomy of Spain and Europe

Puertollano (Ciudad Real), 5 August 2026. Hydnum Steel has secured a €150 million investment commitment from the Co-investment Fund (FOCO), managed by COFIDES. With this commitment, Hydnum Steel bolsters its financial capacity to undertake the construction of its industrial complex in Puertollano (Ciudad Real) and solidifies the ongoing institutional support for a project that will become the Iberian Peninsula’s first clean steel plant.

The transaction is part of a financial plan that will mobilise an overall investment of more than €1.5 billion. Of this figure, approximately €600 million corresponds to equity, whilst around €1 billion will be debt. The project enjoys strong institutional backing from COFIDES and the PERTE II for Industrial Decarbonisation, and is driven by the promoting company, Russula, alongside a group of industrial and financial partners.

Operational progress and strategic partnerships

Since its announcement in 2023, Hydnum Steel has continued to advance its technical and commercial development. Critical administrative hurdles have been overcome, such as the favourable resolution from the Guadalquivir Hydrographic Confederation for the hydrological adaptation of the surrounding area, and the securing of 500 MW of access capacity to the national electricity grid at the Brazatortas node. In accordance with its roadmap, the company plans to commence earthworks and construction by the end of this year, 2026.

In this regard, the project has garnered significant interest from potential clients, having reached agreements that cover 100% of the production capacity demand for the first phase during its initial five years of operation.

The project has already received initial approval and has passed the public consultation phase without any significant objections, paving the way for it to be declared a Project of Exceptional Interest (PSI) by the Regional Government of Castilla-La Mancha. Furthermore, it has been recognised by the World Economic Forum in the field of industrial decarbonisation, and is supported by a consortium of specialised companies. Participating alongside Russula are the German multinational Siemens (providing solutions in digitalisation, automation, and cybersecurity), ABEI Energy (in renewable generation and green hydrogen), and Primetals Technologies (a metallurgical technology provider).

Technology and efficiency in industrial decarbonisation

Hydnum Steel is designed as a digitally integrated plant that will completely eliminate fossil fuels, using instead electric arc furnaces powered by green hydrogen and 100% renewable energy. This production model will enable a reduction in Scope 1 and 2 CO₂ emissions by up to 98% compared to traditional blast furnace methods.

The digitalisation of its processes aims to optimise operational costs, maximise efficiency, and enhance workplace safety. Moreover, the incorporation of Endless Strip Production (Arvedi ESP) continuous rolling technology and a state-of-the-art water treatment system (Zero Liquid Discharge), which prevents discharges and promotes water reuse, further strengthens the facility’s sustainable profile.

Socio-economic impact and job creation

On a social and economic level, the establishment of the industrial complex in Puertollano will act as a major engine for the area’s reindustrialisation and for retaining the local population. The project anticipates generating over 5,000 total jobs across its various phases, of which more than 1,000 will be highly skilled technical direct jobs and over 4,000 will be indirect and induced roles. To support this demand for talent, the company will promote local training programmes and partnerships with educational institutions and universities to provide technical skills training in the region.

Ángela Pérez, Chairwoman and CEO of COFIDES, stated that “through FOCO, we support projects that help transform strategic sectors for the economy. Hydnum Steel is a clear example of this, combining industrial innovation, sustainable production, and the development of productive capabilities. Its launch will contribute to accelerating the decarbonisation of European industry and progressing towards a more sustainable economy”.

For her part, Eva Maneiro, CEO of Hydnum Steel, pointed out that “the backing from COFIDES and the awarding of the Decarbonisation PERTE represent a fundamental boost for our project and its role in the reindustrialisation and decarbonisation of European industry. It demonstrates that our roadmap is progressing as planned and is fully aligned with the industrial and energy sovereignty objectives of Spain and the European Union”.

About Hydnum Steel

Hydnum Steel is the Iberian Peninsula’s first clean steel plant and one of the first to be built globally, with an expected annual production of 2.7 million tonnes of flat steel, placing Spain at the forefront of industrial decarbonisation. Its CO2-free production process is based on the use of renewable energy and green hydrogen. The plant will be entirely digitalised and equipped for the regeneration and reuse of urban and industrial wastewater, making it a model for water sustainability. It will involve an investment of €1.65 billion and create over 5,000 jobs across its successive phases. It has received initial approval as a Project of Exceptional Interest from the Government of Castilla-La Mancha and has been recognised by the World Economic Forum as one of the top five most innovative projects globally to lead the energy transition in the steel industry. hydnumsteel.com

About FOCO

FOCO is a fund created by the Government through the addendum to the Recovery, Transformation and Resilience Plan (PRTR) and is resourced by the NextGenerationEU instrument. Endowed with €2 billion, FOCO aims to boost foreign investment in the Spanish economy by enhancing access to financing for companies linked to the ecological and digital transitions, as well as technological innovation. FOCO investments must include a contribution from a foreign co-investor and can be made through direct investment in companies or in investment funds.

About COFIDES  

COFIDES is a state-owned mercantile company that manages state financial funds, as well as its own resources and those of third-party institutions, with various objectives: the internationalisation of the Spanish economy, the attraction of foreign investment to strategic sectors in Spain, the promotion of the impact economy in Spain, and contributing to the development of the countries in which it invests. Its shareholders include the State, which holds a majority stake, as well as Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell, and CAF-Development Bank of Latin America.