Hydnum Steel obtains government support to become the first green steel plant in Spain

• The plant, to be located in Puertollano, Ciudad Real, will produce emission-free steel and will involve an investment of €1.65 billion
• It will reach an annual production of 2.6 million tons of rolled steel and generate more than 1,100 direct jobs in its successive phases.
• Its declaration as a priority project will speed up deadlines for its implementation and reinforce its strategic role in industrial decarbonisation.

Hydnum Steel, the first green steel mill in Spain and one of the first to be built in Europe, has obtained the declaration of a ‘Priority Project’ by the Government of Castile-La Mancha. This will enable the future plant – which will produce zero-emission steel from renewable energy and green hydrogen – to make significant progress towards its goal of becoming an international reference project in the decarbonisation of the steel industry.

This priority recognition is based on the high social and economic interest of the plant, its public utility and strategic nature. It provides preferential administrative processing and shortens the deadlines necessary for its implementation, especially in matters of territorial and urban planning. Among other advantages, it has an implicit declaration of regional interest and will be able to halve all the deadlines included in the approval procedure for this Project of Singular Interest. It also includes economic and financial incentive measures.

The Hydnum Steel plant, to be located in Puertollano, will manufacture high-quality rolled steel using green hydrogen to produce direct reduced iron (DRI), which is then processed with recycled scrap in an electric arc furnace. Initial production is planned to be 1.5 million tons of rolled steel per year, to be increased in subsequent phases to 2.6 million tons per year.

The entire process, from the production of green hydrogen via electrolysis to the smelting and rolling of the steel, will be carried out using renewable energy. This will reduce CO₂ emissions to practically zero, compared to traditional blast furnace steelmaking. The technology used by Hydnum Steel will reduce atmospheric emissions of CO₂ by almost 5 million tons per year, which is similar to the amount produced by car emissions in a large city like Madrid each year.

The investment by Hydnum Steel is close to €1.65 billion and will generate more than 500 direct jobs in phases I and II (2026-2029), and more than 1,100 in successive expansions; all of them stable, high-quality jobs, with a strong commitment to training.  Works are scheduled to begin in 2025. The plant will satisfy the growing demand for green rolled steel from key sectors in our country, such as the automotive industry and construction.

Eva Maneiro, the CEO of Hydnum Steel, explains that “Our project will lead, not only to the decarbonisation of the steel industry, demonstrating that it is viable and profitable to produce green steel, but will also be a great driver for economic activity and employment, attracting auxiliary companies and promoting the service sector and infrastructure development. Its declaration as a ‘Priority Project’ is great news, encouraging us to continue transforming the socioeconomic reality of Puertollano and Castile-La Mancha.”

A national and European strategic project

Projects such as Hydnum Steel will be key to helping Spain become a green hydrogen hub, thanks to its intensive use.  Furthermore, a commitment to the production of green steel will help advance our country towards its strategic autonomy and industrial decarbonisation, from its current negative trade balance in flat steel. Steel is an essential material for numerous sectors such as the automotive industry, construction, domestic applications, mechanical engineering and piping, among others.

The demand for flat steel continues to grow above production levels, producing a negative trade balance of 11 million tons each year at a European level and around 4-5 million tons in Spain. Furthermore, this demand is expected to grow at a steady rate of 1.3% until 2030. Therefore, the market is heading towards a supply deficit of green flat steel which makes this type of project especially important. Added to this is Spain’s potential in terms of volume and price of renewable energies, with the lowest production costs in Europe.

Greenfield project and circularity

Hydnum Steel is a greenfield project that will lead the steel industry towards new dimensions of sustainability, safety and efficiency. Being a new generation plant, it will begin decarbonised; taking advantage of the most advanced technologies and adopting sustainability practices from the beginning, without the limitations or restrictions of previous structures.

The plant is committed to a new paradigm of production and consumption focused on the efficient use of resources and circularity. The value chain is designed to guarantee a reduction in discharges, an increase in recycling, maximum waste recovery and high energy efficiency.

Efficient water management will be one of the cornerstones of the project. The Hydnum Steel plant will be capable of using greywater from wastewater treatment, both residential and industrial. And to achieve maximum efficiency, the necessary technology will be applied to reduce water consumption and process losses, prolonging its reuse.

This will make Hydnum Steel a European benchmark in the production of competitive, high-quality, emission-free green steel. “This project fits perfectly with Spain’s commitment to reindustrialisation. Hydnum Steel will help meet this objective and do it in a green manner. Being part of this commitment is today, more than ever, a necessity. And we will do so by building a state-of-the-art, competitive plant,” adds Eva Maneiro.