Hydnum Steel's €150M Green Steel Plant Funding

Hydnum Steel is set to construct the Iberian Peninsula's inaugural green steel facility, a significant development in Europe's industrial decarbonization efforts. The project has secured a substantial financial commitment of €150 million from COFIDES, channeled through its co-investment fund (FOCO). This capital infusion is a cornerstone of Hydnum Steel's broader financing strategy, which aims to mobilize over €1.5 billion in total investment, comprising approximately €600 million in equity and €1 billion in debt.

The ambitious undertaking, slated for Puertollano in Ciudad Real, Spain, is designed to be a digitally integrated plant that will eschew fossil fuels. Instead, it will leverage electric arc furnaces powered by green hydrogen and 100% renewable energy sources. This innovative approach is projected to slash Scope 1 and 2 CO₂ emissions by up to 98% compared to conventional blast furnace methods, positioning Hydnum Steel at the forefront of sustainable metallurgy. The project also incorporates advanced technologies like the Arvedi ESP continuous rolling system and a Zero Liquid Discharge water treatment system, underscoring its commitment to environmental stewardship.

This pivotal funding from COFIDES, a Spanish public entity supporting international investment, reinforces institutional backing for a project that promises to revolutionize steel production in the region. The initiative is driven by Russula, alongside a consortium of industrial and financial partners, including German multinational Siemens (contributing expertise in digitalization and automation), ABEI Energy (focusing on renewable generation and green hydrogen), and metallurgical technology provider Primetals Technologies.

Hydnum Steel has made significant strides since its inception in 2023, navigating critical administrative hurdles and securing essential infrastructure. Notably, the project has obtained favorable hydrological assessments and secured 500 MW of grid connection capacity. Commercial interest is robust, with agreements already in place covering 100% of the first phase's production capacity for its initial five years. The company anticipates commencing site preparation and construction by the end of 2026.

The economic and social impact of the Puertollano facility is expected to be substantial. It is anticipated to generate over 5,000 jobs across its development phases, including more than 1,000 direct, highly skilled positions and over 4,000 indirect and induced roles. To cultivate the necessary talent pool, Hydnum Steel plans to launch local training programs and forge partnerships with educational institutions.

Ángela Pérez, President and CEO of COFIDES, emphasized the fund's role in supporting transformative projects, stating, “Through FOCO, we back initiatives that reshape strategic economic sectors. Hydnum Steel exemplifies this by merging industrial innovation, sustainable production, and capacity development. Its launch will accelerate European industrial decarbonization and advance a more sustainable economy.” Eva Maneiro, CEO of Hydnum Steel, added that the support from COFIDES and the PERTE de Descarbonización grant are crucial for the project's contribution to European industrial reindustrialization and decarbonization, aligning with Spain and the EU's goals for industrial and energy sovereignty.