German company Thyssenkrupp Materials Services has signed a strategic agreement to purchase one hundred thousand tons of green flat steel per year from a new production site being developed in Puertollano, central Spain.
The producer, Hydnum Steel, plans to use fossil-free hydrogen in its manufacturing process – a step toward the European transition to more climate-friendly industry.
Production is scheduled to begin in 2026. During the first seven years of the agreement, deliveries will come from Hydnum Steel’s initial production phase, which involves extracting iron with green hydrogen and refining it in an electric arc furnace. The company’s target is to produce up to one and a half million tons of rolled steel per year.
Major investment planned for Puertollano facility
The project has been classified as a priority initiative by the regional government of Castilla-La Mancha, although a final investment decision has not yet been made.
Hydnum Steel, backed by the Spanish engineering company Russula, plans to invest a total of one point six-five billion euros in the facility. The first phase is expected to require around six hundred million euros. Once fully completed, the plant aims to reach an annual production capacity of up to two point six million tons of steel.
Eva Maneiro, CEO of Russula and head of Hydnum Steel, highlights the role of green hydrogen as a key factor in the transition of Europe’s steel industry.
Uncertainty over the final purchase agreement
Thyssenkrupp has previously paused a tender for renewable hydrogen supplies intended for its iron production site in Duisburg, citing slower market development than anticipated.
At present, it remains unclear when a binding purchase agreement between Thyssenkrupp and Hydnum Steel will be finalised. The current deal is considered a strategic declaration of intent – an important step forward, but not yet a guarantee of future deliveries.
Source: Hydrogen Insight
