Danieli & C. Officine Meccaniche S.p.A., a world-leader in iron and steel making plants, and newcleo SA, the nuclear energy innovator, have signed a Memorandum of Understanding to explore the integration of newcleo’s Lead-cooled Fast Reactors (LFR) with Danieli’s steelmaking technology  to make a further step in combining the production of green steel with nuclear energy production.

By leveraging the distinctive capability of LFRs to provide a combination of electricity and high temperature heat, the companies will focus on developing potential integrated solutions where newcleo’s innovative LFRs provide both the electricity and high-temperature heat required to feed some of the Danieli Technologies processes for green steel production.  

The initiative aligns with the Danieli vision of providing high quality green steel and has the potential to contribute to steelmaking in Europe and beyond by providing steel makers with affordable, abundant and carbon free electricity and high-temperature heat through newcleo’s nuclear energy solutions. 

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.

The understanding 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 €100 billion in support of EU-made clean manufacturing. The Commission also pledged to accelerate the development and deployment of small modular reactors (SMRs), recognising their integral contribution to Europe’s competitiveness in global markets and decarbonisation strategies.

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.

The future collaboration with Danieli adds to the application-oriented partnerships newcleo has 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.

Recently, the Italian government has taken concrete steps towards the reintroduction of nuclear energy in its energy mix. In this context, these agreements will generate future opportunities for the Italian and European industry to access clean energy at competitive and stable costs over the long term, allowing the continent to deliver on its net zero pledges while maintaining its competitive edge in the global scenario.

Stefano Buono, founder and CEO of newcleo, said: “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. 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 steel makers, but also by propelling global supply chains towards a new era of competitiveness and sustainability.”

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.”