Spain gives priority to Hydnum Steel project

Spain's Hydnum Steel (HS) has been declared a priority project by the regional government of Castile-La Mancha, the company's Callanish said. This guarantees investment preferential administrative treatment and expedited project implementation.

HS plans to build the first green steel mill on the Iberian Peninsula. The project, a partnership between investment company Helvella, Siemens, ABEI Energy and Russula Corporation, will be located in Puertollano, in the Castilla-La Mancha region.

“Our project will not only decarbonize the steel industry, but will also be a powerful driver of economic activity and employment, attracting ancillary companies and contributing to the development of services and infrastructure,” says HS CEO Eva Maneiro.

The new status of the Puertollano project will speed up its implementation, especially in matters of land and urban planning. Among other benefits, it includes economic and financial incentives.

The green steel plant is designed to use non-fossil energy throughout the production process and will gradually introduce green hydrogen to significantly reduce CO2 emissions.

“The production will meet sustainability goals in the steel industry and the circular economy by recycling scrap as raw material, minimizing water use and valuing waste and by-products generated during production processes,” HS confirms.

The plant will help meet the growing demand for low-emission steel products in key sectors of Spain, such as automotive and construction.

“Demand for flat products continues to rise above production levels, creating a trade deficit of 11 million tons per year at the European level and around 4-5 million tons in Spain,” Maneiro notes. “Moreover, this demand is expected to grow at a steady rate of 1.3% until 2030. Thus, the market is moving toward a supply shortage of low-emission flat products, making this type of project particularly important. Added to this is Spain’s potential in terms of volume and price of renewable energy, with the lowest production costs in Europe.”

The project is estimated to cost €1.65 billion ($1.73 billion) and will create more than 1,000 direct jobs. The plant, covering an area of ​​1.3 million square meters, is expected to be operational in 2026.