EDF, Edison, Federacciai, Ansaldo Energia and Ansaldo Nucleare signed a Memorandum of Understanding for the use of nuclear energy to boost the competitiveness and decarbonisation of the Italian steel industry

The purpose of the agreement is twofold – to explore and consider in the medium term coinvestment opportunities in the construction of Small Modular Reactor (SMR) nuclear power plants, partly to cover the needs of the steel industry, and to consider opportunities for the medium-long term supply of nuclear energy, primarily by means of the capacity on the interconnector already operating between Italy and France.

Genoa-Milan-Paris, 23 July 2024

EDF, Edison, Ansaldo Energia, Ansaldo Nucleare and Federacciai announced the signing of a Memorandum of Understanding (MoU) aimed at promoting cooperation in the use of nuclear energy to boost the compeitiveness and decarbonisation of the Italian steel industry. The signatories of the agreement undertake to consider co-investment opportunities in new nuclear energy and, in particular, in the construction of Small Modular Reactors in Italy over the upcoming decade, making use of the SMR technology promoted by EDF, of Edison’s expertise, and of the engineering and industrial capabilities of Ansaldo Energia and Ansaldo Nucleare.

In that context, the parties undertake to explore the opportunity to establish a supply contract of nuclear energy on the medium and long term, leveraging primarily on the capacity on the interconnector already operating between Italy and France and thus contributing to the decarbonisation of steel production in Italy.

According to the five signatories, nuclear energy has a key role to play in achieving the European Union’s ambitious decarbonisation targets for 2050 and in improving the competitiveness of the industry. Looking at Italy, the reopening the debate about the use of the new nuclear is considered a decisive step. The goal is to implement an energy transition that, together with the development of renewables and green gas, can rely on a baseload and flexible energy source at fixed costs, allowing decarbonisation targets to be reached while minimising the overall cost of energy.

Potential industrial cooperations will fully benefit from the competences of the signatories:

• Ansaldo Energia, as an Original Equipment Manufacturer of turbines and generators and service provider for the energy industry;
• Ansaldo Nucleare, as a system and component developer, service provider and developer of advanced technologies for nuclear plants;
• EDF, as the worldwide largest nuclear owner-operator, committed to implementing new nuclear projects based on technologies including (i) small modular reactors, (ii) EPR1200 mid-size reactors and (iii) EPR large-size reactors;
• Edison, as one of the main players in the energy sector in Italy, with a leading role in the energy transition thanks to a highly diversified renewable energy portfolio (wind, hydroelectric, photovoltaic) and two latest-generation thermoelectric power plants among the most efficient in the world, as well as a consolidated experience in supplying energy and services to Italian industrial customers;
• Federacciai, as the representative entity of Italian steel companies, committed to protecting the interests of the sector.

«The agreement signed today is of crucial importance 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 fully sustainable steel industry. Thanks to agreements like this, within a few years, Italy can become the first country in the world to produce fully decarbonised steel. Nuclear power will be a strategic and much needed component in achieving such ambitious goals, providing the industry with a secure and environmentally friendly energy supply. We will work to ensure that this first important agreement can set an example for all hard-to-abate industrial sectors: this is the only viable way to meet the most ambitious decarbonisation targets», said Antonio Gozzi, President of Federacciai.

«This new step in French-Italian cooperation in the field of decarbonised electricity generation from nuclear sources highlights EDF’s strong commitment to establishing and consolidating a long-term relationship. Our aim is clearly to support the relaunch of the nuclear option in Italy and to strengthen industrial cooperation between the two countries in Italy, in France and in Europe», said Xavier Ursat, EDF Group Senior Executive Vice President in charge of Strategy, Technologies, Innovation and Development. «The interest of a key player such as Federacciai confirms and reinforces our strategy of collaborating with companies and business associations from energy-intensive industries to promote concrete actions aimed at achieving European climate targets», adds Marc Benayoun, EDF Group Senior Executive Vice President, in charge of Customers & Energy Services.

«The agreement announced today marks further progress in setting an agenda for developing new nuclear energy in Italy», said Nicola Monti, Edison Chief Executive Officer. «Today, Italy imports about 15-20% of its energy from abroad. The development of a national supply chain for the production of new nuclear energy, making the most of the technological advances of recent years and investing in the improvement of local skills, represents a phenomenal opportunity to achieve not only decarbonisation targets, but also greater independence and security for the country’s energy system».

«The Ansaldo Energia Group has a wealth of engineering and manufacturing expertise that is fundamental to the energy transition journey», said Fabrizio Fabbri, Ansaldo Energia Chief Executive Officer. «Cooperation at both national and European level is crucial to be competitive and to move forward in a committed way on the path to decarbonisation». Daniela Gentile, Ansaldo Nucleare Chief Executive Officer, added: “We are proud of the continued cooperation and trust with key partners such as EDF, EDISON and Federacciai. This agreement allows Ansaldo Nucleare to make available its experience and capabilities as a systems integrator and developer of new nuclear technologies and represents a crucial opportunity for the country’s growth. The Italian industry recognises the importance of a European approach in the nuclear sector and, as part of the Ansaldo Energia Group, we hope that this will result in the implementation of Italian nuclear projects over the next ten years.”