Spain’s Hydnum Steel has secured a EUR 150 mln (USD 173 mln) investment commitment from the Co-investment Fund (FOCO), managed by state-owned COFIDES, supporting the development of its planned green steel plant in Puertollano, Ciudad Real.
The project is expected to mobilize more than EUR 1.5 bln (USD 1.73 bln) in total investment, including around EUR 600 mln (USD 692 mln) in equity and EUR 1 bln (USD 1.15 bln) in debt financing.
Hydnum plans to develop a digitally integrated steel plant with an annual production capacity of 2.7 mln tons of flat steel. The facility will use electric arc furnaces powered by renewable electricity and green hydrogen, with the company targeting up to a 98pct reduction in Scope 1 and 2 CO2 emissions compared with conventional blast furnace steelmaking.
The plant will also incorporate Arvedi Endless Strip Production (ESP) continuous rolling technology and a Zero Liquid Discharge water treatment system designed to maximize water reuse.
Hydnum said it has secured 500 MW of grid access capacity and expects to begin earthworks and construction by the end of 2026. The company has also reached agreements covering the entire planned production capacity of the project’s first phase for its initial five years of operation.
The project is being promoted by industrial engineering company Russula and supported by several technology and energy partners, including Siemens for digitalization and automation, ABEI Energy for renewable energy and green hydrogen, and Primetals Technologies for metallurgical technology.
Hydnum Steel is developing the Iberian Peninsula’s first green steel plant, targeting annual production of 2.7 mln tons of flat steel using renewable energy and green hydrogen.
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