Hydnum Steel has signed an agreement with automotive supplier Gestamp to produce clean steel using renewable energy and green hydrogen. The partnership is aimed at advancing decarbonization in the mobility sector.
Under the deal, Gestamp’s recycling subsidiary Gescrap will supply high-quality scrap from stamping processes, which Hydnum will process into ultra-low CO2 steel. The two companies will also collaborate on developing steel grades tailored to the automotive industry’s technical requirements. Gestamp will have priority access to the new low-emission steels for use in advanced vehicle components.
The collaboration supports circularity by reintegrating production scrap into the steelmaking process, ensuring traceability across the material lifecycle. It also aligns with Gestamp’s decarbonization strategy, which focuses on sustainable raw materials, recycling, and partnerships to reduce supply chain emissions.
Hydnum’s Puertollano plant in Spain, the first of its kind in the Iberian Peninsula, will produce the clean steel. The facility will run an electric arc furnace powered entirely by renewable energy and replace natural gas with green hydrogen, cutting emissions by up to 98pct compared to conventional steelmaking. It will also operate a closed-loop water system with zero discharge.
