Newcleo, Danieli aim to decarbonise steel production

Tuesday, 11 March 2025

Newcleo, Danieli aim to decarbonise steel production
(Image: Danieli)

Under a memorandum of understanding signed between the two companies, they will focus on developing potential integrated solutions where Newcleo’s innovative lead-cooled fast reactors (LFRs) provide both the electricity and high-temperature heat required to feed some of the Danieli’s processes for manufacturing steel without the use of fossil fuels (referred to as green steel).

Danieli – based in Buttrio in north-east Italy – said it aims to provide steel makers with affordable, abundant and carbon-free electricity and high-temperature heat through Newcleo’s nuclear energy solutions. It said the agreement could lead to energy supply solutions across the iron and steel value chain, including in applications linked to the Danieli Digital Melter and possibly the production of Green Hydrogen to power Danieli’s Energiron Direct Reduction Technology to produce metallic iron.

“By joining their efforts, the two companies acknowledge the opportunity to reach significant milestones in the steel industry’s journey toward decarbonisation, while also working to reduce energy costs and volatility for the benefit of manufacturers and the clients they serve,” Danieli and Newcleo said in a joint statement. 

“Danieli is at the forefront of the steelmaking industry’s effort towards decarbonisation and net-zero, objectives which are ever more entangled with competitiveness and energy costs,” said Newcleo founder and CEO Stefano Buono. “Our objective through this collaboration is to provide steel manufacturers with economically viable solutions for the production of green steel. By combining our technologies, we will look to open up great opportunities for the global steel industry, not only by addressing the direct needs of steelmakers but also by propelling global supply chains towards a new era of competitiveness and sustainability.”

Newcleo said the future collaboration with Danieli adds to the application-oriented partnerships it has already established with other world-class companies, including Fincantieri for naval propulsion, Maire for green chemistry, and Saipem for off-shore nuclear applications, “which are testament to the potential of innovative nuclear solutions in global competitiveness and decarbonisation”.

Alessandro Brussi, Chairman of the Board of Danieli, said: “Newcleo is an innovative player in the nuclear energy industry, looking to manufacture advanced modular reactors and closing the fuel cycle like Danieli is doing in the iron and steel to have plant and process with zero impact. A solution to obtain low-cost fossil-free energy is one of the key factors to move a step ahead in the decarbonisation of the steel industry.”

The partners said the MoU “comes at a defining moment for the European steelmaking and manufacturing industry as demonstrated by the EU Commission’s Strategic Dialogue on the Future of the Steel sector and the Clean Industrial Deal adopted in February, where the EU Commission took bold action to help energy intensive industries lower their energy costs while also creating markets for low carbon and pledging over EUR100 billion (USD109 billion) in support of EU-made clean manufacturing”.

In July last year, an MoU was signed between EDF, Edison, Federacciai, Ansaldo Energia and Ansaldo Nucleare aimed at promoting cooperation in the use of nuclear energy to boost the competitiveness and decarbonisation of the Italian steel industry. Through the MoU, the partners will consider co-investment opportunities in new nuclear energy and, in particular, in the construction of small modular reactors (SMRs) in Italy over the coming decade, making use of the SMR technology promoted by EDF (Nuward), of Edison’s expertise, and of the engineering and industrial capabilities of Ansaldo Energia and Ansaldo Nucleare. They will also explore establishing a supply contract of nuclear energy over 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.

   

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