Forging a New Alliance for a Green Industrial Model

Iberdrola España and Tubos Reunidos Group have signed a landmark long-term power purchase agreement that reinforces Spain’s push toward industrial decarbonisation. The PPA, spanning a decade, ensures the supply of 120 GWh of renewable energy to Tubos Reunidos' manufacturing plants in the Basque provinces of Álava and Vizcaya. The energy will come from approximately 10 MW of Iberdrola’s solar photovoltaic projects located across Spain. This clean energy will power the production of high-value seamless steel tubes, significantly reducing the carbon intensity of the process. The move reflects the growing demand among European industries for green energy solutions and sustainable manufacturing partnerships.

Tubos Reunidos’ Trailblazing Shift to Net-Zero Manufacturing

Tubos Reunidos Group has emerged as a global pioneer in decarbonised steel tube production. With the launch of its proprietary O-Next® range, the company became the first in the world to manufacture seamless tubes with 0.0 CO₂ emissions. The first batch, over 2,000 metric tons, was delivered to more than six customers in Europe and the United States. This new PPA with Iberdrola will help scale this model further, securing a stable flow of renewable energy and fortifying the company's long-term decarbonisation roadmap. The clean energy will directly power production furnaces, melting and shaping steel without adding greenhouse gases to the atmosphere.

Strategic Commitment to Electrification & Environmental Stewardship

The agreement exemplifies how industry leaders are aligning with Spain’s wider energy transition goals. Carlos López de las Heras, CEO of Tubos Reunidos Group, underlined the holistic nature of the company’s decarbonisation strategy. “We are immersed in a process of continuous improvement that involves the entire organisation to make our processes and products more sustainable,” he stated. By focusing on energy efficiency, emissions reduction, and process circularity, the company is driving an agenda that serves both climate goals and industrial resilience. The renewable energy supplied by Iberdrola will be used not only for smelting but also for refining and finishing processes, ensuring net-zero emissions across multiple stages of production.

Iberdrola's Expanding Role in Powering Cleaner Industries

For Iberdrola España, this partnership highlights its growing influence in electrifying Spain’s industrial base. David Martínez, Director of Iberdrola Clientes España, noted that the company is committed to providing tailored renewable energy solutions for the manufacturing sector. “Both companies play a key role in accelerating the energy transition and promoting decarbonisation in the industrial sector,” he said. Iberdrola’s solar PV portfolio is among the most robust in Europe, and supplying power under long-term PPAs gives industries the predictability and pricing stability they need to invest in cleaner operations. These contracts also support Iberdrola's goal of expanding clean energy deployment across its domestic and international markets.

Seamless Steel, Redefined Through Innovation

Tubos Reunidos’ technology is anchored in electric arc furnaces, which already offer a cleaner alternative to traditional blast furnaces. These electric furnaces melt scrap metal using electricity, not fossil fuels, and allow more precise temperature control, reducing waste and energy loss. Now, with renewable electricity replacing conventional sources, the environmental footprint is further minimised. The company’s ability to deliver high-spec industrial tubes without CO₂ emissions sets a new benchmark for the global steel industry, often considered one of the hardest sectors to decarbonise. Clients in the automotive, petrochemical, also energy sectors are increasingly looking for such green credentials when selecting suppliers.

Centralised Production: A Smarter, Greener Facility Layout

Another transformative step under Tubos Reunidos Group’s 2021–2026 Strategic Plan was the consolidation of its steel mills. By merging the early stages of its pipe manufacturing operations into a single site, the company achieved several sustainability milestones. Centralisation reduced internal logistics, cut electricity usage per ton of output, also enhanced automation capabilities. These efficiencies have measurable environmental benefits, enabling faster manufacturing cycles and less energy-intensive handling of materials. Combined with renewable power input, this facility layout marks a major leap in the company’s decarbonisation capabilities, offering a replicable model for other steelmakers.

Circular Economy Practices Reinforce Sustainability

Tubos Reunidos is further pushing sustainability boundaries by integrating circular economy principles. Its operations increasingly rely on recycled steel as raw material, reducing reliance on virgin resources and avoiding the emissions associated with mining and primary steelmaking. Waste heat recovery systems, water reuse technologies, and smart monitoring tools are also in place to ensure maximum efficiency. The company reports improved performance metrics across energy consumption, material efficiency, and emission intensity, supporting both environmental responsibility and cost competitiveness. These practices place Tubos Reunidos at the forefront of responsible industrial leadership.

A Precedent for Green Procurement in European Industry

The Iberdrola–Tubos Reunidos PPA represents a growing trend of “green procurement” within Europe’s industrial landscape. As carbon regulations tighten across the European Union, companies are proactively embedding decarbonisation into their supply chains. By sourcing certified renewable electricity for core manufacturing processes, Tubos Reunidos gains a market edge and helps its clients meet their own emissions targets. This trend is not only environmental, it’s economic. Firms that can demonstrate compliance with ESG standards and carbon-neutral production are better positioned to attract investment, win contracts, and build long-term resilience in an evolving global market.

Key Takeaways

• Iberdrola España will provide 120 GWh of renewable electricity over 10 years from its solar PV projects to Tubos Reunidos Group’s steel manufacturing plants.

• Tubos Reunidos has produced 2,000 metric tons of seamless steel tubes with 0.0 CO₂ emissions using electric arc furnace technology powered by clean energy.

• The partnership supports industrial electrification, operational centralisation, recycled raw materials use, and circular economy principles as part of Tubos Reunidos’ 2021–2026 Strategic Plan.