Hydnum Steel has secured €150m ($173m) from a Spanish state-owned investment firm for constructing its 2.7 million tonne green hydrogen-based steel mill in Puertollano.
The capital from Cofides will contribute to expected costs totalling €1.5bn ($1.73bn), for the clean steel project billed as the first of its kind on the Iberian Peninsula.
Set to break ground before the end of the year, Hydnum said it has already lined up buyers for the entirety of the plant’s output in first five years of operation.
Deals include an agreement with Thyssenkrupp Materials Processing Europe for up to 100,000 tonnes of flat steel per year, and an undisclosed volume contract with building materials firm Kingspan Group.
The project gained Spanish government support back in 2024 and expects up to 1.5 million tonnes of rolled steel to be produced in its first phase, before capacity is increased to 2.7 million tonnes from 2030.
It will be powered by 500MW of power from the national grid supplied under a February deal.
Eva Maneiro, CEO of Hydnum Steel, said the backing from Cofides strengthens the project and its role in decarbonising European Industry.
“It demonstrates that our roadmap is progressing as planned and is fully aligned with the industrial and energy sovereignty objectives of Spain and the European Union,” she added.
While steelmaking has long been billed as a pragmatic end-use for green hydrogen, it remains niche in a sector that accounts for around 7-11% of global carbon dioxide emissions.
Hampered by high costs, ArcelorMittal, the world’s second-largest steelmaker, delayed final investment decisions on its European decarbonisation projects, despite securing some €3.5bn ($4bn) in subsidies for its direct reduced iron installations.
The European Steel Association recently slammed the EU’s emissions trading scheme overhaul, calling it a “fantasy” that cheap green hydrogen and electricity could be widely available in time to decarbonise the sector in line with the bloc’s goals.
Never miss a hydrogen headline
Hydrogen moves fast – stay on top of it with our daily and weekly briefings.
- Daily: The top five hydrogen stories, straight to your inbox
- Weekly: The week’s biggest news, features, interviews and analysis
- North American Bulletin: Dedicated coverage of the region’s key hydrogen developments
Sign up for free
