Hydnum Steel and Primetals Technologies signed a memorandum of understanding (MoU) with the intention to implement a greenfield plant for green steel production in Puertollano, Spain.

 Hydnum Steel and Primetals Technologies signed a Memorandum of Understanding (MoU) with the intention to implement a greenfield plant for green steel production in Puertollano, Spain. The comprehensive project is a collaboration between Hydnum Steel, Russula, ABEI Energy, Siemens, and Primetals Technologies as the engineering and technology provider.

The plant is set to become one of the most prominent sites for green steel production in Europe. While it will initially produce 1.5 million tons of hot rolled coils, the annual capacity is projected to be at 2.6 million tons of hot and cold rolled coils by 2030.

“We are very glad to announce the plans for this massively important green steel project. Our minimill concept features highly efficient electric steelmaking technology and the Arvedi ESP line for unmatched energy efficiency. These solutions ensure that Hydnum Steel has the right technology to produce steel with significantly reduced carbon emissions compared with a conventional integrated steel plant,” says Andreas Viehböck, Head of Upstream Technologies at Primetals Technologies.

“The facility will be designed from the ground up to use non-fossil energy throughout the manufacturing process, thus, it will use green hydrogen into the production process with the aim of substantially reducing CO2 emissions,” says Eric Vitse, Chief Technical Officer at Hydnum Steel.

Green steel for electrical vehicles

The plant will supply high quality flat steel to different industries and applications including high strength grades for the automotive industry, as car manufactures are moving into the electrical vehicle market. The automotive industry accounts for some 10 percent of Spain’s gross domestic product (GDP). At the same time, Spain – and Europe as a whole – are currently and traditionally net importers of flat steel.

DRI plant and cold rolling complex

The partners’ intention is to implement a direct reduced iron (DRI) production unit and a complete cold rolling complex in Phase 2 and 3. The DRI plant will be powered by green hydrogen generated using local renewable energy.

Global engineering company Russula is the project development, with support and contribution from independent power producer ABEI Energy, global industrial company Siemens, and Primetals Technologies.

The Hydnum steel project creates 1,200 direct jobs, as well as some 2,600 indirect jobs, in the Puertollano region, contributing massively to the development and recovery of the Spanish industry.