Siderurgy

Former Ilva, 8 million tonne plan and new tender

In the government's project three electric furnaces in Taranto and one in Genoa. The unions demand certainty on employment. Urso: tender reopened on 1 August

by Domenico Palmiotti

Ilva    industria siderurgica. (Imagoeconomica)

4' min read

4' min read

At a meeting on 14 July at Mimit, the Minister of Enterprise, Adolfo Urso, presented the new decarbonisation plan of Acciaierie d'Italia, the former Ilva, to the trade unions, the Puglia region, the local authorities of Taranto and the Ionian Sea Port Authority. And at the same time he announced the need for a new tender to sell the former Ilva's assets.

The presentation of the plan, finalised by the commissioners of necessity, precedes the 15 July meeting at Mimit between the government, the region, local authorities and the Authority, which will deal with the programme agreement between the institutions on decarbonisation, an agreement for which Urso strongly hoped the signing could take place today.

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The plan is to produce 8 million tonnes of steel through four electric furnaces, three in Taranto and one in Genoa. The breakdown of production is 6 million in Taranto and 2 million in Genoa.

In support of the four furnaces, as many pre-drilling plants (Dri), but all in Taranto because it is not feasible to build a Dri in Genoa as was first thought. To feed the furnaces and Dri in Taranto, 5.1 billion cubic metres of gas per year are needed, which is aimed at obtaining - unless other contributions such as the Tap gas pipeline are to be investigated - with the arrival in Taranto of a regasification ship. A ship that the government would like in port, but the local authorities are against it. The alternative hypothesis to the port, which is on the table, is the breakwater in the roadstead, although this positioning, said Urso, costs 400 million.

In detail, the timing presented by the government envisages that the Taranto plant will be back on the road with three blast furnaces from next March, thus recovering a production of EUR 6 million. This is assuming that the public prosecutor's office can release blast furnace 1, out after the fire in May, in September. After that, the first scenario, which contemplates Dri in Taranto, envisages complete decarbonisation in eight years - initially ending in 2039 - starting next year and ending in 2033. First phase from 2026 to 2029, with one electric furnace and two Dri. Second phase from 2028 to 2031 with a second electric furnace and a third Dri, fourth and final phase from 2030 to 2033 (in the various phases, the last year is always the year of plant start-up) with the third furnace and the fourth Dri. Over the eight years, the three blast furnaces would be progressively decommissioned to make way for the new furnaces. In Genoa, the start-up of the electric furnace is instead scheduled for the end of 2029. Urso explained: "In the first four years we will have an electric furnace in Taranto and one in Genoa for 4 million tons of steel and keeping two of the three blast furnaces in Taranto, another 4 million. After six years, the balance changes: 6 million tons from the electric furnace and 2 million from the blast furnace. Then, after another two years, 8 million from electric furnaces alone'.

Then there is the second scenario that does not contemplate the Dri in Taranto or even the regasification ship, given that there is no favourable climate locally - as institutions and communities - for its arrival. In this case, the timescale drops from eight to seven years, with start-up in 2026 and completion in 2032 instead of 2033. The activation dates for the three furnaces in Taranto are placed at the end of 2029, almost halfway through 2031 and the end of 2033.

The plan presented does not indicate employment figures, nor the necessary investments, and yesterday the unions raised above all the issue of employment and the absence of guarantees in this regard. Guarantees that for the metalworking unions are fundamental, given that decarbonisation will lead to many redundancies in the workforce, even if they are not currently quantified. Redundancies that will increase if Taranto does not accept the Dri and the regasification ship, because at that point there would be no more jobs in the pre-drilling plants that can compensate, albeit partially, for what will be lost directly in the steel plant.

"We must reach an agreement on decarbonisation so that the Integrated Environmental Authorisation can be approved on Thursday," Urso urged at the summit, which was also attended by the Minister of Labour, Marina Calderone. In particular, the minister linked the urgent approval of the IEA to the imminence of the Milan court ruling, which could be negative if the IEA does not comply with the Health Impact Assessment, submitted by AdI and screened by the Istituto Superiore di Sanità, and the June 2024 ruling of the EU Court of Justice.

Finally, for Urso, the agreement on decarbonisation makes it necessary to 'update the tender'. This is the one for the sale of the former Ilva launched in July 2024. "We need to let the actors know," Urso noted, since in the tender launched a year ago "there was not such a clear constraint. There are new conditions and a significant Dri pole'. And for the minister, 'by reopening the terms of the tender from August with these changes, other players can get involved so that in October we can try to award the facilities'.

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