Primary metals manufacturer Hydnum Steel, with several national and international partners including Siemens and Primetals Technologies, has obtained the declaration of a priority project for the construction and commissioning of what will be the first sustainable steel plant in Spain and one of the first in Europe. An initiative that will help our country achieve its goal of becoming a green hydrogen hub.

The regional government of Castilla-La Mancha has taken this step to speed up the implementation of a project that it considers strategic in the context of industrial decarbonisation. The company will invest 1.65 billion euros in the plant, located in Puertollano (Ciudad Real), which is able to produce steel without emissions in any of its processes.

Job creation
The future factory will use renewable energy and green hydrogen in the production process, and will include the use of recycled scrap in an electric arc furnace. Construction work will begin in 2025. Five hundred direct jobs will be generated in the first two phases, between 2026 and 2029,  and this figure will grow to over 1,100 workers in future expansions.

Hydnum Steel maintains that these will be stable, quality jobs and will benefit from a strong commitment to training. All these factors justify the social and economic interest of the plant, as well as its public utility and strategic nature.

Growing demand
Production at Puertollano is expected to reach 1.5 million tonnes of rolled steel per year, rising to 2.6 million tonnes in later phases. It will respond to a growing demand for green rolled steel from key industries such as automotive and construction. It will contribute to reducing a negative trade balance of between four and five tonnes per year in Spain, while also bringing the advantages of low production costs thanks to the volume and price of renewable energies.

After being declared a priority project, the steelworks will have preferential administrative processing, which will help to shorten the time required for its implementation, especially in procedures related to land and urban planning. It also includes the declaration of regional interest and economic and financial incentive measures. 

Major knock-pm effect
Hydnum Steel CEO Eva Maneiro says that the Puertollano project "will not only lead to the decarbonisation of the steel industry, demonstrating that it is viable and profitable to produce green steel, but it will also have a great effect on economic activity and employment, attracting auxiliary companies and boosting the service industry and the development of infrastructure."

Efficient water management will be another pillar of the project, thanks to the reuse of greywater from wastewater treatment, both urban and from other industries. As Maneiro explained, "This project fits perfectly with Spain's commitment to reindustrialisation. With Hydnum Steel, we will help to achieve this goal by doing so in a green way. Today, more than ever before, it is a necessity to take part in this challenge. And we will do so by building a state-of-the-art, competitive plant.

^{Photo: Hydnum Steel}