Hydnum Steel will receive EUR 150 million from Cofides to launch the first clean steel plant on the Iberian Peninsula in Puertollano (Ciudad Real), which will also be one of the first in the world. The project, which will mobilise more than EUR 1.5 billion in investment and generate more than 1,000 highly skilled direct jobs, is progressing through the pre-construction procedures and expects to begin earthworks and construction work towards the end of this year.

Cofides’ contribution, through the Co-Investment Fund (FOCO), strengthens Hydnum Steel’s financial capacity to undertake the construction of this industrial complex. It also consolidates institutional support for the project, which already received EUR 60 million in funding in 2025 from the Industrial Decarbonisation PERTE.

Project of special interest
The project was announced in 2023, has received initial approval and has already completed significant administrative procedures, such as the favourable ruling by the Guadalquivir River Basin Authority on the hydrological adaptation of the surrounding area, and the securing of 500 MW of capacity for access to the national electricity grid. It has in addition completed the public consultation process without any significant objections,  to be declared a Proyecto de Singular Interés (PSI, Project of Special Interest) by the Regional Government of Castilla-La Mancha.

Interest from potential customers has already covered 100% of the planned production capacity for the first phase during the first five years of operation. According to the plans, the plant will produce 2.7 million tonnes of flat steel a year through a carbon-neutral production process based on electric arc furnaces powered by renewable energy and green hydrogen, thereby reducing its carbon footprint by up to 98% compared with conventional steelmaking processes.

Wastewater regeneration, reuse
The plant will also be fully digitalised and designed for the regeneration and reuse of urban and industrial wastewater. The project is led by engineering company Russula and is supported by a group of industrial and financial partners, notably the multinational company Siemens, ABEI Energy and Primetals Technologies.

Cofides Chairwoman and Chief Executive Officer  Ángela Pérez explained, “Through FOCO, we support projects that help transform strategic sectors of the economy. Hydnum Steel is a clear example of this, combining industrial innovation, sustainable production and the development of production capacity. Its commissioning will help to accelerate the decarbonisation of European industry and progress towards a more sustainable economy.”

Hydnum Steel CEO Eva Maneiro did in addition point out, “The support from Cofides and the Decarbonisation PERTE award provide a crucial boost to our project and its role in the reindustrialisation and decarbonisation of European industry. It shows that our roadmap is progressing as planned and is fully aligned with the industrial and energy sovereignty objectives of Spain and the European Union.”

^{Photo: Hydnum Steel}