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Spain greenlights €1.65 Billion green steel plant

In a groundbreaking move for the steel industry, Hydnum Steel has received official support from the Spanish government to establish the country’s first green steel plant.

Spain greenlights €1.65 Billion green steel plant

In a groundbreaking move for the steel industry, Hydnum Steel has received official support from the Spanish government to establish the country’s first green steel plant. This pioneering facility, set to be located in Puertollano, Ciudad Real, aims to produce zero-emission steel using renewable energy and green hydrogen.

The project, which has been declared a ‘Priority Project’ by the Government of Castile-La Mancha, will benefit from expedited administrative processes and various economic incentives. With an investment of approximately €1.65 billion, the plant is expected to generate over 1,100 direct jobs in its successive phases.

Hydnum Steel’s innovative approach involves using green hydrogen to produce direct reduced iron (DRI), which will then be processed with recycled scrap in an electric arc furnace. This method is projected to cut CO2 emissions by nearly 5 million tons annually, significantly contributing to the decarbonization of the steel industry.

The plant’s initial production capacity is planned to be 1.5 million tons of rolled steel per year, with a future increase to 2.6 million tons. The entire production process will be powered by renewable energy, making it a model for sustainable industrial practices.

Construction is slated to begin in 2025, with the plant expected to meet the growing demand for green steel in sectors such as automotive and construction. This initiative marks a significant step towards a more sustainable future for the steel industry in Spain and Europe.

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