Sidenor is investing in the decarbonization of steel production in Basauri

The Spanish steelmaker Sidenor is implementing an investment plan to decarbonize its Basauri plant, aimed at reducing greenhouse gas emissions and improving the energy efficiency of its production. The projects are being carried out as part of the PERTE de Descarbonización Industrial 2024 program, according to a press release.

The plan includes two key areas: the electrification of certain production processes and the digitalization of energy consumption management. The company notes that these measures are intended to strengthen its sustainability, competitiveness, and alignment with decarbonization goals for energy-intensive industries.

The first project involves replacing existing natural gas-fired steam boilers with electrically powered mechanical vacuum pumps. The new equipment will be used in the steel degassing process during the finishing stage of steelmaking. This will allow Sidenor to completely eliminate gas consumption for boiler operation at this stage.

Electricity for the pumps will be supplied from renewable sources, which should prevent an increase in indirect emissions following the electrification of the process. According to the company’s estimates, the project will save approximately 35,000 MWh of natural gas per year and reduce emissions by more than 6,000 metric tons of CO2 equivalent annually. Emissions associated with the VD and VOD lines are expected to be virtually reduced to zero.

The second focus area concerns the digitalization of energy consumption. Sidenor will implement an online monitoring system for electricity and gas consumption across the plant’s various production processes. The project includes the installation of new meters and the development of predictive models based on artificial intelligence.

This will allow the company to track consumption in real time, identify deviations, optimize steelmaking operations, and identify additional opportunities for energy savings. Digitalization is expected to save over 3,600 MWh of gas and approximately 3,200 MWh of electricity annually, reducing emissions by an additional 1,000 metric tons of CO2 equivalent.

Both projects are part of Sidenor’s decarbonization plan at the Basauri site, which received support under the PERTE de Descarbonización Industrial 2024. The program is implemented by the Spanish Ministry of Industry and Tourism with EU funding through NextGenerationEU.

As a reminder, Spanish steelmakers increased steel production by 0.7% in 2025 compared to 2024, reaching 11.95 million tons. Average monthly steel production in 2025 stood at 995,800 tons, compared to 988,600 tons a year earlier.