Hydnum Steel, the first green steel mill in Spain, has obtained the declaration of a ‘Priority Project’ by the Government of Castile-La Mancha. This will enable the future plant – which will produce zero-emission steel from renewable energy and green hydrogen – to make significant progress towards its goal of becoming an international reference project in the decarbonization of the steel industry.
This priority recognition is based on the high social and economic interest of the plant, its public utility and strategic nature. It provides preferential administrative processing and shortens the deadlines necessary for its implementation, especially in matters of territorial and urban planning.
The Hydnum Steel plant, to be located in Puertollano, will manufacture high-quality rolled steel using green hydrogen to produce direct reduced iron (DRI), which is then processed with recycled scrap in an electric arc furnace. Initial production is planned to be 1.5 million tons of rolled steel per year, to be increased in subsequent phases to 2.6 million tons per year.
The entire process, from the production of green hydrogen via electrolysis to the smelting and rolling of the steel, will be carried out using renewable energy. This will reduce CO2 emissions to practically zero, compared to traditional blast furnace steelmaking.
Efficient water management will be one of the cornerstones of the project. The Hydnum Steel plant will be capable of using greywater from wastewater treatment, both residential and industrial. And to achieve maximum efficiency, the necessary technology will be applied to reduce water consumption and process losses, prolonging its reuse.
The investment by Hydnum Steel is close to €1.65 billion and will generate more than 500 direct jobs in phases I and II (2026-2029), and more than 1,100 in successive expansions.
Eva Maneiro, the CEO of Hydnum Steel, explains that “Our project will lead, not only to the decarbonization of the steel industry, demonstrating that it is viable and profitable to produce green steel, but will also be a great driver for economic activity and employment, attracting auxiliary companies and promoting the service sector and infrastructure development”.
