Hydnum Steel secures a €150 million investment from COFIDES to build the Iberian Peninsula's first clean steel plant
Hydnum Steel has secured a €150 million investment from the Co-investment Fund (FOCO), managed by COFIDES. With this commitment, Hydnum Steel bolsters its financial capacity to undertake the construction of its industrial complex in Puertollano, Ciudad Real, that will become the Iberian Peninsula’s first clean steel plant.
The project claims it will mobilise over €1.5 billion in overall investment and generate more than 5000 jobs, establishing itself as a key driver for the reindustrialisation and strengthening of the strategic autonomy of Spain and Europe
The transaction is part of a financial plan that will mobilise an overall investment of more than €1.5 billion. Of this figure, approximately €600 million corresponds to equity, whilst around €1 billion will be debt. The project enjoys strong institutional backing from COFIDES and the PERTE II for Industrial Decarbonisation, and is driven by the promoting company, Russula, alongside a group of industrial and financial partners.
Since its announcement in 2023, Hydnum Steel has continued to advance its technical and commercial development. Critical administrative hurdles have been overcome, such as the favourable resolution from the Guadalquivir Hydrographic Confederation for the hydrological adaptation of the surrounding area, and the securing of 500MW of access capacity to the national electricity grid at the Brazatortas node. In accordance with its roadmap, the company plans to commence earthworks and construction by the end of this year, 2026.
In this regard, the project has garnered significant interest from potential clients, having reached agreements that cover 100% of the production capacity demand for the first phase during its initial five years of operation.
The project has already received initial approval and has passed the public consultation phase without any significant objections, paving the way for it to be declared a Project of Exceptional Interest (PSI) by the Regional Government of Castilla-La Mancha. Furthermore, it has been recognised by the World Economic Forum in the field of industrial decarbonisation, and is supported by a consortium of specialised companies. Participating alongside Russula are the German multinational Siemens (providing solutions in digitalisation, automation, and cybersecurity), ABEI Energy (in renewable generation and green hydrogen), and Primetals Technologies (a metallurgical technology provider).
Hydnum Steel is designed as a digitally integrated plant that will completely eliminate fossil fuels, using instead electric arc furnaces powered by green hydrogen and 100% renewable energy. This production model will enable a reduction in Scope 1 and 2 CO₂ emissions by up to 98% compared to traditional blast furnace methods.
The digitalisation of its processes aims to optimise operational costs, maximise efficiency, and enhance workplace safety. Moreover, the incorporation of endless strip production (Arvedi ESP) continuous rolling technology and a water treatment system (Zero Liquid Discharge), which prevents discharges and promotes water reuse, further strengthens the facility’s sustainable profile.
Ángela Pérez, chairwoman and CEO of COFIDES, said, “Through FOCO, we support projects that help transform strategic sectors for the economy. Hydnum Steel is a clear example of this, combining industrial innovation, sustainable production, and the development of productive capabilities. Its launch will contribute to accelerating the decarbonisation of European industry and progressing towards a more sustainable economy”.
Eva Maneiro, CEO of Hydnum Steel, added, “The backing from COFIDES and the awarding of the Decarbonisation PERTE represent a fundamental boost for our project and its role in the reindustrialisation and decarbonisation of 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”.