Spanish green steel producer Hydnum Steel has announced that it has secured a €150 million investment commitment from the Co-investment Fund (FOCO), managed by COFIDES, strengthening the financial framework for the construction of its low-carbon steel plant in Puertollano, Ciudad Real. The project is set to become the Iberian Peninsula's first clean steel plant.
The FOCO investment forms part of a financing package expected to mobilize more than €1.5 billion, comprising approximately €600 million in equity and around €1 billion in debt. The project is also supported by COFIDES, Spain's Strategic Project for Economic Recovery and Transformation (PERTE) II Industrial Decarbonisation program, and is being developed by Russula together with a consortium of industrial and financial partners.
Construction scheduled to begin by end of 2026
Since announcing the project in 2023, Hydnum Steel has continued to advance both technically and commercially. The company has obtained a favorable decision from the Guadalquivir Hydrographic Confederation regarding hydrological adaptation works and has secured 500 MW of grid access capacity at the Brazatortas connection point. According to its current schedule, earthworks and construction are expected to begin by the end of 2026.
Hydnum Steel also stated that it has already signed commercial agreements covering 100 percent of the production capacity of the plant's first phase for its initial five years of operation, demonstrating strong market interest in its low-carbon steel products.
Plant to cut emissions by up to 98 percent
Hydnum Steel's facility has been designed as a fully digitalized plant that will eliminate the use of fossil fuels by utilizing electric arc furnace (EAF) technology powered by green hydrogen and 100 percent renewable electricity. According to the company, this production model is expected to reduce Scope 1 and Scope 2 carbon emissions by up to 98 percent compared with conventional blast furnace steelmaking.
The project will also incorporate Arvedi's Endless Strip Production (ESP) continuous rolling technology and a Zero Liquid Discharge (ZLD) water treatment system designed to eliminate wastewater discharge while maximizing water reuse. Hydnum Steel stated that digitalization will further improve operational efficiency, reduce production costs and enhance workplace safety.
