Hydnum Steel has secured €60 million for the construction of a green steel plant

The Spanish company Hydnum Steel (HS) has secured €60 million in funding as part of the second round of the Strategic Project for Economic Recovery and Transformation (PERTE) for its ‘green’ steel plant in Puertollano (Spain). This was reported by Castilla-La Mancha Media.

The Spanish PERTE programme is being implemented under the European recovery plan – Next Generation EU. Hydnum Steel’s initiative was designated a project of special interest by the regional government of Castilla-La Mancha.

The company notes that, following the project’s announcement in 2023, it has achieved several milestones to ensure its viability, including securing a 500 MW grid connection capacity at the Brazatortas (Ciudad Real) and finalising agreements to sell 100 per cent of its ‘green’ steel output during the plant’s first five years of operation.

Increased government support paves the way for total investment of €1.6 billion; the project will create 5,000 jobs in Puerto Lano, with construction set to begin in December this year.

The project is being implemented in partnership with Helvella, Siemens, ABEI Energy and Russula Corp. Primetals Technologies is responsible for the steel technologies.

It is worth noting that the ‘green’ steel plant in Puerto Lano, in the Castile-La Mancha region, is designed to use fossil-fuel-free energy throughout the entire production process and will gradually introduce ‘green’ hydrogen to significantly reduce CO₂ emissions. HS aims to produce 1.5 million tonnes of flat steel products per year for the automotive, construction and renewable energy sectors.