The automotive sector, responsible for a significant share of industrial emissions, is moving toward cleaner supply chains as Gestamp and Hydnum Steel formalize a partnership to produce ultra-low CO₂ steel using renewable energy and green hydrogen.
The collaboration combines Gestamp’s metal recycling expertise with Hydnum Steel’s clean steel production capabilities, marking a strategic push toward decarbonizing automotive component manufacturing.
Under the agreement, Gestamp’s subsidiary Gescrap will supply high-quality steel scrap from stamping processes, which Hydnum Steel will transform into green steel at its Puertollano plant in Spain. The facility will operate with an electric arc furnace powered exclusively by renewable energy, while green hydrogen will replace natural gas, cutting emissions by up to 98% compared with conventional steelmaking. The plant will also feature a closed-loop water treatment system to achieve zero discharge, underscoring a commitment to environmental sustainability.
Technical collaboration is central to the partnership, with both companies working to develop steel grades that meet stringent automotive standards in chemical composition, mechanical properties, thickness, and finish. Gestamp will retain priority access to these low-emission steels, enabling the production of high-performance components while reinforcing its broader decarbonization and circularity strategy.
Steel and aluminum production account for over 70% of Gestamp’s total emissions, making scrap recycling a cornerstone of its sustainability model. By reintegrating high-quality scrap into production, the company ensures full traceability of material flows, supporting both emission reduction and circular economy principles.
Hydnum Steel emphasizes that extensive use of scrap metal underpins its circular production model. The Puertollano plant is positioned as the first facility in the Iberian Peninsula to combine renewable-powered electric arc furnaces with green hydrogen, offering a scalable model for low-carbon steel production in Europe.
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