An electric arc blast furnace in action
Hydnum plans to produce sponge iron with green hydrogen, which will be combined with scrap in an arc furnace to yield up to 1.5 million tonnes of rolled steel annually. Future phases will expand production to 2.6 million tonnes. The plant will feature an advanced control system integrating computer vision, digital twins, predictive analytics, and artificial intelligence to enhance safety, efficiency, and quality. Hydnum stated: “This milestone marks a significant step toward a more sustainable industry.”
The facility is expected to create 1,000 direct jobs, contributing to local economic growth. Hydnum has secured a seven-year, €1 billion contract to supply steel to Spanish fabricator Gonvarri Industries, ensuring market stability. Chief Executive Eva Maneiro remarked: “Our aim is to lead change with every tonne of green steel we put on the market and with every innovation that challenges convention to achieve an industry that is truly committed to the future of our planet.”
The project involves collaboration with Hamburg-based Helvella Capital, Siemens, Madrid-based ABEI Energy, and Spanish steel energy specialist Russula. Construction is slated to begin by the end of 2025, pending regulatory approvals. The initiative is supported by Spain’s PERTE program, funded through the EU’s €750 billion Next Generation fund, designed to aid post-Covid-19 economic recovery.
By leveraging green hydrogen and advanced technology, the Puertollano steel mill aims to set a new standard for sustainable industrial practices. The project aligns with global efforts to reduce carbon emissions in heavy industries, positioning Spain as a leader in green steel production while fostering economic and environmental benefits for the region.
