Hydnum Steel has secured a €150 million investment commitment from COFIDES for its planned clean steel complex in Puertollano, Spain, providing further financial support for a project designed to use green hydrogen and renewable electricity instead of fossil fuels in steel production.
The investment will come through the Co-investment Fund (FOCO), managed by COFIDES, and forms part of a wider financing package for a project expected to require more than €1.5 billion. Hydnum Steel’s current financing plan comprises approximately €600 million in equity and around €1 billion in debt.
If developed as planned, the facility will become the first clean steel plant in the Iberian Peninsula, with eventual annual production capacity of 2.7 million tonnes.
Green hydrogen is central to the project’s decarbonisation strategy. Hydnum Steel plans to operate without fossil fuels, using electric steelmaking powered by 100% renewable electricity and incorporating green hydrogen into its production model. According to the company, this approach could reduce Scope 1 and Scope 2 CO₂ emissions by as much as 98% compared with conventional blast furnace steelmaking.
The project brings together several major industrial and technology partners. Russula is the promoting company, while Siemens will contribute digitalisation, automation and cybersecurity solutions. ABEI Energy is involved in renewable power generation and green hydrogen, and Primetals Technologies will provide metallurgical technology.
Hydnum Steel has also made progress on the infrastructure required to support the development. The company has secured 500 MW of grid access capacity at the Brazatortas connection point and received a favourable decision from the Guadalquivir Hydrographic Confederation regarding hydrological adaptation of the surrounding area.
Construction and earthworks are currently expected to begin before the end of 2026.
On the commercial side, Hydnum Steel says it has reached agreements covering 100% of the production capacity demand for the project’s first phase during its first five years of operation, providing an important commercial foundation as the company moves toward construction.
The facility will combine hydrogen and renewable energy with advanced steelmaking technologies. Plans include Arvedi Endless Strip Production (ESP) continuous rolling technology, extensive digitalisation and a Zero Liquid Discharge water treatment system designed to maximise water reuse and prevent wastewater discharge.
The project has already received initial administrative approval and completed public consultation without significant objections. It is also progressing toward designation as a Project of Exceptional Interest by the regional government of Castilla-La Mancha and has received support through Spain’s PERTE II for Industrial Decarbonisation.
Beyond its climate objectives, Hydnum Steel is positioning the Puertollano development as a major industrial investment for Castilla-La Mancha. More than 5,000 jobs are expected to be generated across the project’s different phases, including over 1,000 direct highly skilled technical positions and more than 4,000 indirect and induced jobs.
The project is particularly significant because steel remains one of the most challenging industrial sectors to decarbonise. Hydnum Steel’s proposed combination of green hydrogen, renewable electricity and electric steelmaking is intended to demonstrate an alternative to traditional coal- and coke-intensive production while establishing new low-carbon steel capacity within Europe.
The €150 million COFIDES commitment therefore represents another important step toward financing the Puertollano complex and could help establish Spain as a significant location for green hydrogen-based steel production as European manufacturers work to reduce industrial emissions and dependence on fossil fuels.