500 MW Grid Access Secured at Brazatortas Node in Ciudad Real
Hydnum Steel has reached a defining milestone in its journey to build Spain’s first clean steel plant by securing access to 500 megawatts (MW) of electrical capacity at the Brazatortas grid node in the province of Ciudad Real. The allocation, officially published in the country’s state gazette, provides the company with the energy backbone required to power its planned electric arc furnace (EAF) facility. This grid connection approval represents not just an administrative achievement but a foundational step that brings the construction of the pioneering clean steel project significantly closer to reality.
The availability of 500 MW of electricity ensures that Hydnum Steel will have sufficient, stable, and scalable power to operate its EAF-based production model. Electric arc furnace technology relies heavily on electricity rather than fossil fuels, making energy access a decisive factor in operational feasibility. By obtaining grid connectivity at the Brazatortas node, Hydnum Steel has effectively secured the core infrastructure needed to launch one of the most ambitious decarbonization initiatives in the European steel industry.
Advancing Spain’s First Clean Steel Plant
Hydnum Steel’s project is positioned as Spain’s first fully integrated clean steel plant, marking a transformative shift for the country’s industrial landscape. Unlike traditional blast furnace operations that depend on coal and coke as primary inputs, this new facility will utilize renewable electricity to power its production processes. The plant will be digitally integrated from end to end, incorporating advanced automation, data analytics, and process optimization tools to ensure operational efficiency and environmental performance.
The company’s strategic objective is to become a reliable supplier of clean, European-produced steel, supporting industries that are under mounting pressure to reduce their carbon footprints. By combining renewable power with electric arc furnace technology, Hydnum Steel aims to offer a lower-emissions alternative to conventional steelmaking. The project’s design reflects a long-term vision: to position Spain and the Iberian Peninsula as key contributors to Europe’s green industrial transformation.
Construction of the facility is scheduled to begin in 2026. The total planned investment exceeds €1.5 billion, underscoring the scale and ambition of the undertaking. This capital commitment covers infrastructure development, advanced production equipment, digital integration systems, and supporting logistics networks. The project’s magnitude places it among the most significant industrial investments currently planned in Spain.
Production Capacity and Market Impact
In its inaugural phase, Hydnum Steel is set to produce approximately 1.5 million tons of steel annually. Over time, capacity is projected to expand to 2.7 million tons per year, reflecting a scalable development strategy aligned with market demand. The plant will focus on the production of hot-rolled steel coils, a fundamental input for numerous downstream industries, including automotive, construction, renewable energy infrastructure, and manufacturing.
Flat steel products, in particular, remain in relatively short supply within the European Union. European countries collectively import nearly 11 million tons of steel each year to meet domestic demand. Hydnum Steel’s output will contribute meaningfully to reducing this dependency on imports by strengthening regional supply chains. By producing flat steel domestically, the company will enhance industrial resilience and support strategic autonomy within the EU market.
The plant’s competitive advantage lies not only in its production capacity but also in its environmental credentials. As sustainability becomes a decisive purchasing criterion for many industrial buyers, access to low-carbon steel will play a crucial role in enabling manufacturers to decarbonize their own value chains. Hydnum Steel’s products are expected to serve companies seeking to meet stringent emissions targets and comply with evolving European regulations.
Employment and Regional Economic Development
Beyond its environmental and industrial significance, the clean steel plant is expected to generate substantial economic benefits for the region. During the initial operational phase, more than 400 direct jobs will be created. As the facility scales toward its full projected output of 2.7 million tons per year, direct employment is anticipated to exceed 1,000 positions.
These figures do not account for the additional indirect and induced employment opportunities that typically accompany large-scale industrial projects. Construction activities, supply chain partnerships, maintenance services, logistics operations, and local service industries are likely to experience significant growth as a result of the plant’s development. The investment will therefore act as a catalyst for broader economic revitalization in Ciudad Real and the surrounding areas.
The project’s timing is particularly relevant as regions across Europe seek to balance environmental transition goals with economic stability. By aligning decarbonization efforts with job creation and industrial expansion, Hydnum Steel demonstrates that climate action and economic development can progress in parallel.
Government Prioritization of Low-Emission Projects
The approval of the grid connection reflects a broader policy framework in which the Ministry for Ecological Transition prioritizes projects that contribute to emissions reductions. During the connection allocation process, authorities evaluate multiple criteria, including the environmental impact of the project, the scale of investment, and the proposed timeline for implementation.
Hydnum Steel’s proposal stands out across all these dimensions. The company’s commitment to eliminating fossil fuels from its production model aligns directly with Spain’s and the European Union’s climate objectives. By relying exclusively on 100% renewable electricity, the plant is designed to achieve a 98% reduction in emissions compared to a conventional blast furnace steel mill.
This dramatic reduction in greenhouse gas emissions represents a structural transformation of one of the most carbon-intensive industrial sectors. Traditional steelmaking is responsible for a substantial share of global industrial emissions, primarily due to its reliance on coal-based processes. Transitioning to electric arc furnace technology powered by renewables significantly lowers the carbon intensity of steel production, setting a new benchmark for sustainable manufacturing.
The magnitude of Hydnum Steel’s €1.5 billion investment further reinforced its case during the evaluation process. Large-scale projects that combine environmental ambition with economic impact are central to national and European decarbonization strategies. By committing both capital and a clear construction start date in 2026, the company demonstrated readiness to move from planning to execution.
A Transformative Step for the Iberian Peninsula
The clean steel plant represents more than a standalone industrial facility; it symbolizes a shift in how heavy industry can operate within a low-carbon economy. As one of the first projects of its kind in the Iberian Peninsula, it has the potential to serve as a model for future investments in green metallurgy across Europe.
Hydnum Steel’s integration of renewable power, advanced digital systems, and scalable production capacity positions it at the forefront of industrial decarbonization. By securing 500 MW of grid access at Brazatortas, the company has cleared one of the most critical hurdles in large-scale industrial development. With energy supply assured, attention can now turn to engineering, procurement, construction planning, and stakeholder coordination.
As global demand for sustainable materials accelerates, the project places Spain in a strong competitive position within the evolving European steel landscape. Through innovation, environmental stewardship, and strategic investment, Hydnum Steel is laying the groundwork for a cleaner, more resilient industrial future.
Official Source and Legal Considerations
It is important to note that the original source-language text of this announcement constitutes the official and authoritative version. Any translations are provided solely for convenience and informational purposes. In the event of any discrepancies, the original language version is the only text intended to carry legal effect and should be referenced accordingly.
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