• The facility will be the first clean steel plant in the Iberian Peninsula, with an annual production of 2.7 million tons and a 98% reduction in its carbon footprint compared to conventional steelmaking processes
• The project will mobilize over €1.5 billion in overall investment and generate more than 5,000 jobs, establishing itself as a key driver for the reindustrialisation and strengthening of the strategic autonomy of Spain and Europe

Hydnum Steel has secured a €150 million investment commitment from the Co-investment Fund (FOCO), managed by COFIDES. With this commitment, Hydnum Steel bolsters its financial capacity to undertake the construction of its industrial complex in Puertollano (Ciudad Real) and solidifies the ongoing institutional support for a project that will become the Iberian Peninsula’s first clean steel plant.

The transaction is part of a financial plan that will mobilize an overall investment of more than €1.5 billion. Of this figure, approximately €600 million corresponds to equity, whilst around €1 billion will be debt. The project enjoys strong institutional backing from COFIDES and the PERTE II for Industrial Decarbonization, and is driven by the promoting company, Russula, alongside a group of industrial and financial partners.

Operational progress and strategic partnerships. Since its announcement in 2023, Hydnum Steel has continued to advance its technical and commercial development. Critical administrative hurdles have been overcome, such as the favorable resolution from the Guadalquivir Hydrographic Confederation for the hydrological adaptation of the surrounding area, and the securing of 500 MW of access capacity to the national electricity grid at the Brazatortas node. In accordance with its roadmap, the company plans to commence earthworks and construction by the end of this year, 2026.

In this regard, the project has garnered significant interest from potential clients, having reached agreements that cover 100% of the production capacity demand for the first phase during its initial five years of operation.

The project has already received initial approval and has passed the public consultation phase without any significant objections, paving the way for it to be declared a Project of Exceptional Interest (PSI) by the Regional Government of Castilla-La Mancha. Furthermore, it has been recognized by the World Economic Forum in the field of industrial decarbonization, and is supported by a consortium of specialized companies. Participating alongside Russula are the German multinational Siemens (providing solutions in digitalization, automation, and cybersecurity), ABEI Energy (in renewable generation and green hydrogen), and Primetals Technologies (a metallurgical technology provider).

Technology and efficiency in industrial decarbonization. Hydnum Steel is designed as a digitally integrated plant that will completely eliminate fossil fuels, using instead electric arc furnaces powered by green hydrogen and 100% renewable energy. This production model will enable a reduction in Scope 1 and 2 CO₂ emissions by up to 98% compared to traditional blast furnace methods.

The digitalization of its processes aims to optimize operational costs, maximize efficiency, and enhance workplace safety. Moreover, the incorporation of Endless Strip Production (Arvedi ESP) continuous rolling technology and a state-of-the-art water treatment system (Zero Liquid Discharge), which prevents discharges and promotes water reuse, further strengthens the facility’s sustainable profile.

Socio-economic impact and job creation. On a social and economic level, the establishment of the industrial complex in Puertollano will act as a major engine for the area’s reindustrialization and for retaining the local population. The project anticipates generating over 5,000 total jobs across its various phases, of which more than 1,000 will be highly skilled technical direct jobs and over 4,000 will be indirect and induced roles. To support this demand for talent, the company will promote local training programs and partnerships with educational institutions and universities to provide technical skills training in the region.

Ángela Pérez, Chairwoman and CEO of COFIDES, stated that “through FOCO, we support projects that help transform strategic sectors for the economy. Hydnum Steel is a clear example of this, combining industrial innovation, sustainable production, and the development of productive capabilities. Its launch will contribute to accelerating the decarbonization of European industry and progressing towards a more sustainable economy”.

For her part, Eva Maneiro, CEO of Hydnum Steel, pointed out that “the backing from COFIDES and the awarding of the Decarbonization PERTE represent a fundamental boost for our project and its role in the reindustrialization and decarbonization of European industry. It demonstrates that our roadmap is progressing as planned and is fully aligned with the industrial and energy sovereignty objectives of Spain and the European Union”.