Kingspan Partners with Hydnum Steel for Green Steel Production in Spain
Key Ideas
- Kingspan signs a deal with Hydnum Steel to source low-emission green steel from a new plant in Spain, using renewable energy and green hydrogen to reduce carbon emissions.
- The partnership is part of Kingspan's sustainability efforts to lower Scope 3 emissions and secure lower-carbon raw materials in response to the construction sector's significant carbon footprint.
- Green steel production, while currently facing challenges due to higher costs and limited iron ore availability, is expected to grow as demand for low-emission materials increases and technology advances.
- Hydnum's €1.65bn plant, backed by EU funds, aims for zero direct CO2 emissions and plans circular logistics involving ferrous scrap recovery in collaboration with Kingspan.
Ireland-based building materials firm Kingspan has entered into a supply agreement with Hydnum Steel to procure green steel from Hydnum's upcoming plant in Puertollano, Spain. The steel production at the facility will prioritize the use of renewable energy and green hydrogen over coal to reduce carbon emissions. This initiative is part of Kingspan's broader sustainability strategy aiming to lessen Scope 3 emissions and obtain lower-carbon raw materials within its supply chain. Steelmaking is highlighted as a significant contributor to global CO2 emissions, with green steel production serving as a more environmentally friendly alternative. The partnership between Kingspan and Hydnum signifies a step towards greener steel production in the construction industry, known for its substantial carbon footprint.
The article discusses the challenges facing green steel production, such as the higher costs associated with using green hydrogen and the limited availability of suitable iron ore for direct reduction processes. Despite these obstacles, the demand for low-emission materials is expected to drive the growth of green steel in the market. Hydnum's plant, supported by EU recovery funds, is poised to lead in sustainable steel production on the Iberian peninsula, emphasizing zero CO2 emissions and circular logistics for scrap recovery. As the technologies in green steel production advance and policies become more supportive, the cost disparity between green and conventional steel is anticipated to diminish over time, fostering a more sustainable steel industry.
Topics
South America
Renewable Energy
Sustainability
Carbon Reduction
EU Funding
Steel Industry
Construction Sector
Latest News