Former Ilva steelworks: decarbonization plan to save Italy's steelworks: green plants by 2033

As scheduled, the Minister of Enterprise and Made in Italy, Adolfo Urso , presented the plan for the ecological transition of the former Ilva plants yesterday in Rome, during a meeting with trade union representatives, the Puglia Region, and local and port authorities.

Urso then confirmed that the tender for the sale of the plants will be reopened on August 1st, to include new potential buyers in addition to Baku Steel, the current interlocutor, with the aim of closing by October, then undergoing antitrust and Golden Power review, and arriving at the final sale in early 2026.

Urso, how production is changing in Taranto and Genoa with electric furnaces

The plan conceived by the government , drawn up by the extraordinary commissioners, envisages a production plant with an annual capacity of 8 million tons of steel, based on four electric furnaces: three in Taranto and one in Genoa.

The roadmap aims to restart the three blast furnaces in Taranto as early as March 2026, pending the release of blast furnace 1 by the Public Prosecutor's Office. Minister Urso explained that the progressive replacement of the blast furnaces with electric furnaces will be divided into three phases, to be completed by 2033 , and this will allow the decommissioning of the most polluting plants.

Two options on the table:

• the first involves the construction in Taranto of three electric furnaces and four Dri, to be completed in eight years;
• the second, without Dri in Taranto, would reduce the time to seven years but with less employment capacity.

The demand for gas , estimated at over 5 billion cubic meters per year, is a critical issue. The government proposes to dock a regasification vessel in the port of Taranto, but the proposal is opposed by local authorities.

Among the alternatives is the breakwater, which would cost an additional $400 million. The minister clarified that the presence or absence of the ship also impacts the tender: the offer from Baku Steel , the current candidate, had been formulated assuming the availability of the regasification terminal, a condition that must now be made explicit.

Trade unions' concerns on the employment front

The issue of redundancies remains on the table: the second option, without Dri in Taranto, would entail major workforce cuts. Urso has ensured that the redundancies will be managed with extraordinary tools and incentives, guaranteeing that "no one will be left behind."

The unions, however, are demanding precise figures and written guarantees before signing any agreement. "Before signing any agreement, we demand guarantees regarding the fate of the factories, but above all, the workers," warned Rocco Palombella of UILM. Fiom and Fim also insist on a public role in managing the transition.

What happened to the deal with Baku Steel?

Urso announced the reopening of the tender for the plants from August 1st , to allow the entry of other bidders and overcome the stalemate generated by Baku Steel's request to renegotiate its offer downwards following the fire in May.

The minister explained that the new tender will serve to definitively close the chapter with Baku Steel, which had submitted a conditional proposal, and will have to take into account the environmental constraints and scenarios defined by the decarbonization plan.

The push for the green light for the integrated environmental authorization

The minister has urgently requested that an agreement be finalized on the plan within the next few days , so as to obtain approval of the Integrated Environmental Authorization (AIA) by Thursday the 17th, before the ruling of the Milan Court and the European Court of Justice. For Urso, the AIA remains a crucial step in moving forward with the sale of the plants.