en.Wedoany.com Reported - Hydnum Steel has secured a €150 million investment commitment from the joint investment fund (FOCO), managed by Cofides, to build the Iberian Peninsula's first clean steel plant in Puertollano (Ciudad Real), Spain. This investment is part of a financial plan mobilizing over €1.5 billion in total, with approximately €600 million in equity and around €1 billion in debt.
The plan has received institutional support from Cofides and the Industrial Decarbonization Perte II (Perte II de Descarbonización Industrial), and is being promoted by the driving company Russula, together with multiple industrial and financial partners. Since its announcement in 2023, the project has completed key administrative procedures, including a favorable ruling on hydrological suitability from the Guadalquivir Hydrographic Confederation (Confederación Hidrográfica del Guadalquivir), as well as securing 500 MW of national grid access capacity at the Brazatortas node.
According to the project roadmap, Hydnum Steel expects to begin earthworks and construction by the end of 2026. The project has already attracted interest from potential customers, with five-year operational agreements in place covering 100% of the first phase's production capacity. Having received initial approval and passed public consultation without significant objections, the project is expected to be declared a Project of Singular Interest (Proyecto de Singular Interés, PSI) by the Regional Government of Castilla-La Mancha (Junta de Castilla-La Mancha), while also being recognized by the World Economic Forum as an industrial decarbonization project.
In addition to Russula, the project consortium includes Siemens (responsible for digitalization, automation, and cybersecurity solutions), ABEI Energy (providing renewable energy and green hydrogen generation), and Primetals Technologies (metallurgical technology supplier).
Hydnum Steel will be a fully digitally integrated plant that does not use fossil fuels, instead utilizing electric arc furnaces powered by green hydrogen and 100% renewable energy. Compared to traditional blast furnace processes, Scope 1 and Scope 2 CO2 emissions can be reduced by up to 98%. Process digitalization aims to optimize operational costs, improve efficiency, and enhance occupational safety. The plant will also employ endless strip casting and rolling technology (Arvedi ESP) and a latest-generation water treatment system (zero liquid discharge), preventing wastewater discharge and promoting water reuse.
The project is expected to generate more than 5,000 total jobs across its construction and operational phases, including over 1,000 direct jobs and more than 4,000 indirect and induced jobs. To meet talent needs, the company will promote local training programs and collaborate with educational institutions and universities to provide technical training.
Hydnum Steel is the Iberian Peninsula's first clean steel plant and one of the first of its kind to be built globally, with an annual production capacity of 2.7 million tons of flat steel. Its CO2-free production process is based on the use of renewable energy and green hydrogen. The plant will be fully digitalized and equipped with the capacity to regenerate and reuse urban and industrial wastewater. With a total investment of €1.65 billion, the project has received initial approval as a Project of Singular Interest from the Regional Government of Castilla-La Mancha and has been recognized by the World Economic Forum as one of the five most innovative projects globally leading the energy transition in the steel industry.
