Hydnum Steel has secured a EUR 150 million investment commitment through the Co-investment Fund (FOCO), managed by Spain's state-owned development finance institution COFIDES, for its clean steel plant to be built in Puertollano, Ciudad Real. The investment forms part of a financing package expected to exceed EUR 1.5 billion, comprising approximately EUR 600 million in equity and EUR 1 billion in debt financing.
2.7 million mt annual capacity and up to 98% lower emissions
The project, planned as the first clean steel plant on the Iberian Peninsula, will produce steel using electric arc furnaces (EAFs) powered by renewable electricity and green hydrogen. The facility is designed to produce 2.7 million mt of flat steel annually while reducing Scope 1 and Scope 2 carbon emissions by up to 98% compared to conventional blast furnace-based production.
Public support grows as construction targeted for year-end
In addition to the COFIDES investment commitment, Hydnum Steel previously secured a EUR 60 million grant under Spain's PERTE II program, which supports industrial decarbonization. Construction of the plant is scheduled to begin toward the end of 2026.
First announced in 2023, the project has achieved several key milestones this year. The company secured 500 MW of grid connection capacity at the Brazatortas connection point, obtained a favorable hydrological assessment for the site, and completed the public consultation process without any significant objections.
Hydnum Steel is being developed with the support of several industrial partners. Russula is serving as the project developer, Siemens will provide digitalization, automation, and cybersecurity solutions, ABEI Energy is responsible for the renewable energy and green hydrogen infrastructure, while Primetals Technologies will supply the plant's metallurgical technologies.
More than 5,000 jobs expected
The project is expected to create more than 5,000 jobs, including over 1,000 direct and more than 4,000 indirect positions. Hydnum Steel also plans to establish cooperation programs with regional educational institutions to help develop the skilled workforce required for the project.
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