Thyssenkrupp agrees to buy 100,000 tonnes of flat steel from Spanish green hydrogen-based plant
Hydnum Steel plans to invest €1.65bn into the project, which is scheduled to begin operations next year
German steelmaker Thyssenkrupp’s material processing subsidiary has signed a strategic agreement to buy 100,000 tonnes of green hydrogen-derived flat steel from Hydnum Steel’s flagship steel production scheme in Spain, for the first seven years of the project's operations.
Hydnum Steel has previously estimated that the Puertollano project will start operations of its first phase in 2026, using green hydrogen to extract iron from ore and an electric arc furnace to produce up to 1.5 million tonnes of rolled steel per year.
However, it does not appear to have reached a final investment decision, despite being designated a “priority project” by the regional government of Castile-La Mancha.
Hydnum Steel has estimated that the full project, able to produce 2.6 million tonnes a year of steel, would require €1.65bn ($1.73bn) of investment in total, with the first phase costing €600m.
The Spanish company is backed by Russula, a specialist engineering company for the steel industry — the CEO for which, Eva Maneiro, is also the head of Hydnum Steel.
However, it is unclear when Thyssenkrupp will sign a binding purchase order with Hydnum Steel.
(Copyright)