Spanish green steel project developer Hydnum Steel has secured a EUR 150 mln (USD 170 mln) investment commitment from Spain’s state-owned investment fund manager COFIDES to build a new steel plant in Puertollano, Ciudad Real. The project is expected to require total investment of more than EUR 1.5 bln (USD 1.7 bln).
The plant is designed to produce 2.7 mln tons of flat steel annually, with construction scheduled to begin by the end of 2026. The project aims to reduce Scope 1 and 2 carbon emissions by up to 98pct compared with conventional blast furnace-based steelmaking.
Hydnum Steel plans to use electric arc furnaces powered by renewable electricity and green hydrogen, alongside Arvedi Endless Strip Production (ESP) continuous rolling technology. The facility will also incorporate a water treatment system designed to prevent liquid discharges and promote water reuse.
The investment commitment, provided through the Co-investment Fund (FOCO) managed by COFIDES, strengthens the project’s financing plan, which includes approximately EUR 600 mln in equity and EUR 1 bln (USD 1.13 bln) in debt.
The project is expected to create more than 5,000 jobs across its development and operating phases, including over 1,000 direct positions and more than 4,000 indirect and induced jobs. Hydnum Steel has also secured agreements covering demand for the first phase’s entire production capacity during its first five years of operation.
1 USD / 0.88 EUR