Gonvarri invests €116.4 Million in Low-Carbon Steel and Clean Energy

Steel News  |  2026-08-31 02:59:23   |   By

The company considers the 2026-2027 period a regulatory and industrial turning point for the gradual integration of low-carbon and green steel into its product portfolio.

SEATTLE (Scrap Monster): Gonvarri Industries, a Spain-based steel processing and metal solutions manufacturer, continued its investments in sustainability, low-emission steel, energy efficiency, and new technologies in 2025.

According to the company’s 2025 Sustainability Report, Gonvarri Industries made EUR 116.4 million in capital expenditures during the year, with projects focused on low-carbon steel, renewable energy and the electrification of production processes standing out.

The company’s sales volume reached approximately 5 million tons in 2025, while EBITDA stood at EUR 335 million. Gonvarri operates in 27 countries with 56 production facilities.

RECA fully acquired

Of Gonvarri’s EUR 116.4 million CAPEX spending in 2025, EUR 29.8 million was allocated to mergers and acquisitions.

The report stated that the acquisition of 100% of RECA was an important step in bringing new technological capabilities into the group, expanding its presence in strategic markets and increasing business diversification.

Partnerships in low-carbon steel expanded

Gonvarri Industries stated that the use of low-emission steel in Europe is gradually increasing, depending on factors such as availability, certification, cost and technological maturity.

The company signed cooperation agreements with ArcelorMittal, thyssenkrupp Steel and Hydnum Steel to increase the use of steel with a lower carbon footprint.

In addition, low-emission steel solar tracking systems were supplied for Iberdrola’s photovoltaic projects in Portugal, while low-emission galvanized products were supplied to Schneider from Gonvarri Barcelona.

Environmental Product Declarations were prepared for galvanized coils at Gonvarri Barcelona and for crash barriers and road safety terminals at Gonvarri Asturias.

Scope 1 emissions down 14% from 2022

Under Gonvarri’s Carbon Neutral 2030-2050 Plan, the company aims to reduce Scope 1 emissions by 50% from 2022 levels by 2030 and source 100% of purchased energy from renewable sources.

In 2025, Scope 1 emissions, including Gonvvama, decreased by 4% compared with 2024 and by 14% compared with the 2022 baseline. The company therefore exceeded its 12% interim reduction target set for 2025. During the same period, 61% of electricity and 29% of heat and steam used came from renewable sources.

122 energy efficiency projects implemented

Gonvarri commissioned nine energy efficiency projects at nine plants in 2025. Six of these projects focused on reducing natural gas and propane consumption, while three targeted electricity consumption.

The projects are expected to generate more than 4 GWh of annual energy savings and reduce CO₂ emissions by 1,229 tons.

The total number of projects and measures implemented under the ECO-ENERGY program since 2015 reached 122, generating more than 30 GWh in annual energy savings. This corresponds to a reduction of more than 9% in the group’s energy consumption.

In Türkiye, improvements to the combustion system of the ÇEPAS galvanizing furnace reduced natural gas consumption by 9%, electricity consumption by 50% and zinc consumption by more than 5%.

More than 12 GWh generated by 20 solar plants

By the end of 2025, Gonvarri had 20 solar energy facilities used for self-consumption. These facilities generated more than 12 GWh of electricity annually.

New solar facilities were commissioned at Gonvarri Asturias, Senica, Laubac and Popes Lane.

Gonvarri Solar Steel supplied solar energy structures to nine countries in 2025. According to the company’s calculations, these projects indirectly avoided approximately 1.08 million tons of CO₂ emissions throughout the year.

10-year PPA signed covering plants in five countries

Gonvarri signed a 10-year European virtual power purchase agreement (PPA) starting in 2026.

The agreement covers facilities in Portugal, Slovenia, Hungary, Slovakia and the Czech Republic. The company plans to source 100% of the electricity consumed at these facilities from renewable sources.

Green hydrogen project under development in Barcelona

Gonvarri is developing a green hydrogen production system at its Barcelona facility under the HYGreen BCNA project.

The project includes plans to install 300 kWp of solar capacity and a 100 kW electrolyzer. The hydrogen produced will be used together with natural gas in boilers to reduce Scope 1 emissions.

The report also noted that H2Greem has developed a 250 kW electrolyzer stack.

CBAM preparations extended across the supply chain

In 2025, Gonvarri continued collecting and verifying embedded emissions data from its suppliers in preparation for CBAM obligations.

From 2026, the company plans to further integrate CBAM requirements into supplier management, with a particular focus on data reliability, preparation for carbon costs and compliance processes.

In 2025, the share of secondary material in Gonvarri’s steel sourcing mix averaged 14%.

The company considers the 2026-2027 period a regulatory and industrial turning point for the gradual integration of low-carbon and green steel into its product portfolio.

Courtesy: www.eurometal.com