French EDF and Italian steelmakers consider joint investments in nuclear power

French energy company EDF and Italian steelmakers are considering joint investments in nuclear power. This is stated in a press release from EDF.

EDF has signed an agreement with Edison’s Italian subsidiary, equipment manufacturers Ansaldo Energia and Ansaldo Nucleare, as well as the Italian steel industry association Federacciai to explore joint investment opportunities in the sector.

The Memorandum of Understanding provides for the promotion of cooperation in the use of nuclear energy to increase the competitiveness and decarbonization of the Italian steel industry. The signatories of the agreement, in particular, undertake to consider joint investment in the construction of small modular reactors (SMR) in Italy over the next decade.

In this context, the parties intend to explore the possibility of concluding a contract for the supply of nuclear energy in the medium and long term, primarily using the capacity of the interconnector already operating between Italy and France.

According to Antonio Gozzi, President of Federacciai, the deal is crucial for the Italian steel industry and the entire production chain.

“The commitment of Italian steelmakers is clear: we intend to lead the transition to a completely sustainable steel industry. Thanks to agreements like this, in a few years Italy could become the first country in the world to produce fully decarbonized steel. Nuclear power will be a strategic and essential component for achieving such ambitious goals, providing the industry with a safe and clean energy supply,” he said.

According to Nicola Monti, CEO of Edison, Italy currently imports about 15-20% of its energy from abroad. He believes that the development of a national supply chain for new nuclear energy production provides a phenomenal opportunity to achieve not only decarbonization goals, but also greater independence and security of the country’s energy system.

SMRs can be deployed at specific sites, Reuters notes, and are being developed to offer less costly and more targeted options for high-emitting facilities such as steel mills.

EDF recently announced that it is switching to using existing technologies to design its small modular reactors instead of continuing to develop its own to reduce costs and meet deadlines.

According to the 2023 Sustainability Report for the industry published by Federacciai, the Italian steel industry leads the EU in terms of decarbonization, circularity and energy efficiency. According to the report, energy efficiency and specific CO2 emissions in the country’s steel sector are 40% better than the European average.