Spanish environmentally friendly steel producer Hydnum Steel has announced that it has raised an investment of 150 million euros from a Co-investment Fund (FOCO) managed by COFIDES to strengthen the financial base for the construction of its low-carbon steel plant in Puertollano, Ciudad Real. The project is to become the first environmentally friendly steel production facility on the Iberian Peninsula.
FOCO's investment is part of a financing package that is expected to raise more than 1.5 billion euros, including approximately 600 million euros of equity and about 1 billion euros of debt. The project is also supported by COFIDES, Spain's Strategic project for Economic Recovery and Transformation (PERTE) II, an industrial decarbonization program, and is being developed by Russula together with a consortium of industrial and financial partners..
Construction is scheduled to begin by the end of 2026. года
Since the announcement of the project in 2023, Hydnum Steel has continued to develop both technically and commercially. The company received a positive decision from the Guadalquivir Hydrographic Confederation regarding hydrological adaptation work and provided access to the 500 MW grid at the Brasatortas connection point. According to the current schedule, excavation and construction are expected to begin by the end of 2026.
Hydnum Steel also stated that it has already signed commercial agreements covering 100% of the production capacity of the first stage of the plant during the first five years of its operation, demonstrating the high market interest in low-carbon steel products..
Plant to reduce emissions to 98%
Hydnum Steel Plant It was designed as a fully digital enterprise that will eliminate the use of fossil fuels through the use of electric arc furnace (EDP) technology powered by environmentally friendly hydrogen and 100% renewable electricity. According to the company, this production model is expected to reduce carbon dioxide emissions in volumes 1 and 2 by up to 98% compared to traditional steel smelting in blast furnaces.
The project will also introduce Arvedi's continuous endless strip rolling (ESP) technology and zero carbon dioxide emissions. Liquid Drain Water (ZLD) is a treatment system designed to eliminate wastewater discharge while maximizing water reuse. Hydnum Steel stated that digitalization will further increase work efficiency, reduce production costs and increase workplace safety.
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