Industry

Africa, on energy and food projects involving the South

New Frontiers. Terna has called for tenders to select suppliers to build an EU 850 million power line between Tunisia and Sicily; Interconnector companies are ready to invest in renewables

by Vera Viola

Tunisia with surrounding region as seen from Earth's orbit in space. 3D illustration with highly detailed planet surface and clouds in the atmosphere. Elements of this image furnished by NASA.

3' min read

3' min read

The first major interventions for Africa in the pipeline directly and indirectly involve territories and businesses in southern Italy. Although the Mattei Plan, announced since October 2022 and considered one of the pillars of government action, has so far produced very little.

The first project on the starting line concerns the Elmed interconnection that will be built by Terna and Steg, the Tunisian grid operator. "After obtaining the authorisation decree," says Terna, "preliminary activities are being carried out on Italian territory, such as preventive archaeology, while tenders are underway to award contracts for the supply of cables and stations. The project enjoys a contribution of EUR 307 million from the EU, and it is the first case in which funding has been granted to a project in which one of the countries involved is not a member of the European Union.

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It is a 220-kilometre long power line, most of it in submarine cable, to a maximum depth of about 800 metres along the Strait of Sicily, requiring an investment of about EUR 850 million. On the Italian side, the overland cable will run for 18 kilometres from the landing in Castelvetrano (Trapani) to the conversion station that will be built in Partanna (Trapani). In Tunisia, the electrical station will be built in Mlaabi, on the Cape Bon peninsula. In the meantime, the companies gathered in Interconnector (a consortium company) are already mobilised, which, according to Law 99/2009 Article 32, can participate in the financing of one or more upgrades of interconnection infrastructures with foreign countries. These companies could allocate 100 million to the work.

The same Interconnector companies are ready to invest an equal amount in another project that aims to install renewable energy plants in Tunisia. Negotiations have begun with the Tunisian embassy in Italy: it is thought that part of the energy produced will be sold to the Tunisian government and part transported to Italy. Again, southern Italy could become the landing place for the energy produced.

Another important project of the Mattei Plan is the one assigned to the company Bonifiche Ferraresi and which is expected to find a lot of cooperation in the southern area. The agreement, signed on 6 July, requires the Italian company to invest in regenerating 36,000 hectares of land in Algeria and, starting this year, to dig wells and sow seeds in order to increase Algerian production. The value of the operation is 420 million.

The project envisages the cultivation of cereals and dried legumes and, more generally, the production of agricultural foodstuffs (between Adrar and Timimoun, in the centre of the country), through a joint venture with an Algerian majority, between Bonifiche Ferraresi (49%) and the Algerian National Investment Fund (51%). Buildings will also be constructed for food processing, including twelve silos for the storage of agricultural products (of 62 thousand tons).

More specifically, about 70 per cent of production is expected to be durum and soft wheat for domestic consumption, while the remaining 30 per cent of production will be grain legumes.

While waiting for the Mattei Plan to come to fruition, a number of southern companies have already ventured into Africa. The Grimaldi group, for example, has offices in a dozen African countries. So far, investments in Africa have largely been inspired by follow-the-customer strategies. This is the case of Proma, the Caserta-based automotive components company that has two plants in Morocco - the first built in Casablanca back in 1997, the second opened in 2019 in Kenitra - designed to meet the needs of its customer Stellantis.

Then there are the companies that collaborate with Eni or Saipem in the construction of oil plants or with Italfer in projects for large railway networks in Ethiopia. Some have dared to go as far as the Cape of Good Hope, such as the Apulian company Blackshape, which has a bridgehead in South Africa for its light aircraft.

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