The Government Grants €60 Million from the PERTE for Decarbonization to Hydnum Steel

“This achievement is, above all, a tribute to Agustín Escobar, the driving force behind the Puertollano project,” said Eva Maneiro, the company’s CEO.

Hydnum Steel has secured a key €60 million in funding from the PERTE for Industrial Decarbonization, the strategic program approved by the Spanish Government to accelerate the green transition of the industrial sector. This investment represents a decisive boost for the construction of the first clean steel plant on the Iberian Peninsula, located in Puertollano (Ciudad Real), an industrial hub with a strong energy and mining legacy.

A Flagship Project for the New European Industry

Hydnum Steel is a strategic initiative for Spain’s reindustrialization and Europe’s productive autonomy. It is conceived as a driving project committed to the new European industrial paradigm: sustainable, competitive, and digital.

The plant will eliminate CO₂ emissions and waste discharge into aquifers, setting a new benchmark for energy efficiency and environmental responsibility through several key differentiating factors:

• Exclusive use of 100% renewable energy for all operations, making the plant a benchmark for real, verified decarbonization from the outset.
• Sustainable water management, using a treatment, purification, and reuse system for greywater that minimizes water consumption and reduces reduces dependence on local aquifers.
• A comprehensive commitment to quality employment, training, and the retention of young talent.
• Circular economy principles applied to heavy industry, through the intensive use of metal scrap as raw material and the recovery of waste generated during production.
• Smart production systems integrating computer vision, predictive analytics, and artificial intelligence to ensure steel quality, staff safety, and optimal energy performance.
• Advanced industrial digitalization with sensors, digital twins, and interconnected data infrastructure capable of real-time process optimization and anticipating bottlenecks or incidents.

Institutional Support and International Recognition

The Hydnum Steel project already has strong institutional backing and international recognition:

• It has been declared a Priority Project by the Government of Castilla-La Mancha and is currently in the process of obtaining the status of Project of Singular Interest, a legal designation that will speed up its development and implementation.
• Additionally, the World Economic Forum in Davos recently named it one of the five most relevant projects in the world for industrial decarbonization. This recognition highlights its strategic value in the transition to a clean and resilient economy.

The plant is in the advanced stages of administrative processing and engineering validation. Construction is scheduled to begin at the end of 2025.

Initial production will reach 1.5 million tons of steel per year, supplying key sectors such as automotive, construction, and renewable energy.

A Project with a Soul: A Tribute to Agustín Escobar

News of the PERTE grant comes at a deeply emotional time for the Hydnum Steel team. On Tuesday, April 22, they said farewell in Barcelona to Agustín Escobar, a key figure in the project’s beginnings.

“This achievement is, above all, a tribute to Agustín Escobar, whom we said goodbye to alongside his entire family. He was the one who believed in this dream from the very beginning, who paved the way for this steel plant to be built in Puertollano. His vision, his faith in innovation, and his belief that a different kind of industry is possible will always define the DNA of Hydnum Steel,” said Eva Maneiro, CEO of the company.

Toward Sustainable Industrial Leadership

With this funding and a model based on proprietary technology, digitalization, and strategic alliances with companies such as Russula, Siemens, Primetals, and Abei Energy, Hydnum Steel positions itself as a benchmark on the path to an industrially autonomous and climate-neutral Europe.

The complex will generate more than 1,000 direct jobs and 3,500 indirect jobs, giving a decisive boost to the economic and social fabric of the region.

Hydnum Steel would like to express its gratitude to the Spanish Government and, in particular, to the Ministry of Industry and Tourism for the support granted through the Strategic Project for the Recovery and Economic Transformation (PERTE) of Industrial Decarbonization. This aid represents a recognition of the project’s transformative value and a strong commitment to a cleaner, more innovative, and competitive national industry. Public-private collaboration is key to effectively addressing the challenges of the green transition, and this institutional support enables a firm step toward a new era in steel production in Europe.

Flat Steel Production: Addressing a Strategic European Need

Hydnum Steel will specialize in the production of hot-rolled flat steel, a material essential to sectors like automotive, construction, and renewable energy. Currently, Europe faces a structural deficit in the production of this type of steel, with over 90% of consumption coming from traditional blast furnaces and a significant dependence on high-carbon-footprint imports.

The Puertollano plant, with a production capacity of up to 2.6 million tons per year once all project phases are complete, will significantly reduce this deficit, strengthening Europe’s industrial autonomy and aligning with the continent’s decarbonization goals.

Secured Sales Commitments: A Solid Business Model
Hydnum Steel has already secured the sale of 75% of its production for the first seven years of operation, through strategic agreements with major sector players such as Gonvarri Industries, Thyssenkrupp Materials Processing Europe, and Knauf Interfer.

The funding awarded to Hydnum Steel is part of the Recovery, Transformation and Resilience Plan, which is financed by the European Union – Next Generation EU and administered by the Ministry of Industry and Tourism.