Gestamp, Hydnum Steel Partner to Use Clean Steel Produced With Green Hydrogen
10/13/2025 - Gestamp and Hydnum Steel have signed an agreement to use clean steel produced with renewable energy and green hydrogen for automotive component manufacturing.
Under the terms of the agreement, Gestamp’s specialized metal recycling subsidiary, Gescrap, will supply high-quality steel scrap from stamping processes to Hydnum Steel. Hydnum Steel will then use renewable energy and green hydrogen to produce ultralow-CO2-emission steel.
“This agreement marks another step forward in our efforts to decarbonize the automotive industry and strengthens our circular economy model, which is based on the sustainable management of resources and the reuse of our high-quality scrap in steel production,” said Javier Imaz, chief purchasing officer of Gestamp.
The agreement also includes technical collaboration to develop automotive industry standard steel grades. Gestamp will have priority access to these low-emission steels for production of advanced metal components.
The companies said the collaboration with help advance circularity, with the intention to decarbonize the automotive supply chain and one day achieve the net-zero car. Gestamp said its circularity model ensures the availability of high-quality scrap to produce ultralow-emission steels and full traceability of the material life cycle.
Hydnum Steel’s Puertollano plant will be the first of its kind in the Iberian Peninsula, operating with an electric arc furnace powered only by renewable energy. They estimate the substitution of natural gas with green hydrogen will reduce emissions by about 98% compared to traditional steel mills. It will also have a closed-loop water treatment and reuse system to achieve zero discharge.
“The partnership reflects the commitment of both companies to advancing a sustainable and efficient European industry. Hydnum Steel’s plant is a flagship project for the energy transition and will produce steel with the utmost respect for the environment,” said Gilles Mirol, chief marketing officer of Hydnum Steel.
“This agreement marks another step forward in our efforts to decarbonize the automotive industry and strengthens our circular economy model, which is based on the sustainable management of resources and the reuse of our high-quality scrap in steel production,” said Javier Imaz, chief purchasing officer of Gestamp.
The agreement also includes technical collaboration to develop automotive industry standard steel grades. Gestamp will have priority access to these low-emission steels for production of advanced metal components.
The companies said the collaboration with help advance circularity, with the intention to decarbonize the automotive supply chain and one day achieve the net-zero car. Gestamp said its circularity model ensures the availability of high-quality scrap to produce ultralow-emission steels and full traceability of the material life cycle.
Hydnum Steel’s Puertollano plant will be the first of its kind in the Iberian Peninsula, operating with an electric arc furnace powered only by renewable energy. They estimate the substitution of natural gas with green hydrogen will reduce emissions by about 98% compared to traditional steel mills. It will also have a closed-loop water treatment and reuse system to achieve zero discharge.
“The partnership reflects the commitment of both companies to advancing a sustainable and efficient European industry. Hydnum Steel’s plant is a flagship project for the energy transition and will produce steel with the utmost respect for the environment,” said Gilles Mirol, chief marketing officer of Hydnum Steel.