Rome actively pursues a revival of nuclear energy
Energizing the Future: Italy's Nuclear Renaissance with Mini-Reactors
In the face of mounting energy costs and geopolitical challenges, the Italian government is planning a controversial comeback for nuclear power. The last Italian nuclear power plant shut down over three decades ago, but the ongoing Ukraine conflict has spotlighted the vulnerability of energy supplies. High prices have also put Italy's industry at a disadvantage compared to its European neighbors like Spain and France. To level the playing field, Prime Minister Giorgia Meloni's government is eyeing a nuclear energy revival with plans to reintroduce the technology, with a bill expected soon.
A planned resurgence is not new to Italy. A 1987 referendum led to the shutdown of reactors, and a 2011 referendum blocked government plans to restart a nuclear program. However, Italy boasts a robust nuclear industry, with around 600 companies generating 4 billion euros annually in revenues, primarily from overseas projects.
Mini-Nuclear Reactors Take Center Stage
Newcleo, an innovative Italian-French startup founded by physicist and entrepreneur Stefano Buono in 2021, is at the forefront of this nuclear revival. The company, which employs about 200 young professionals, plans to operate nuclear mini-reactors by the next decade. "We aim to produce safe, sustainable, and cost-effective energy," says Elisabeth Rizzotti, the company's COO and co-founder.
The startup has set its sights on installing a non-nuclear prototype at the decommissioned Brasimone reactor south of Bologna in 2026. The 200+ employee company, which has relocated its headquarters to Paris, is also plotting extensions in London, Belgium, Switzerland, and Slovakia. Newcleo has garnered 537 million euros in investments from investors, including the Exor family holding of the former Fiat owners Elkann-Agnelli. Rizzotti anticipates an additional 3 billion euros will be required for development by 2030, with the Italian state-owned development bank CDP reportedly considering investing up to 200 million euros.
Racing Against the Clock in France
Newcleo has applied for a license with French authorities to build a nuclear reactor prototype by 2031, with the first reactor primed for serial production by 2033. Experts from the Karlsruhe Institute of Technology view this timeline as overly optimistic, estimating construction times of two to three years. The reactors are designed to be easy to manufacture and transport, with low and well-controlled risks. The installation of a 200-megawatt reactor is expected to cost around 800 million euros, with the company aiming for an electricity price of 60 euros per megawatt-hour.
However, significant delays and cost overruns, as seen with the two third-generation EPR reactors in Finland and northern France, are not unheard of.
Joining Forces in the EU
Newcleo was recently selected by the EU as one of nine projects under the European Industrial Alliance on SMRs (Small Modular Reactors). The EU aims to promote the development and production of innovative, safe, and efficient mini-reactor projects by the early 2030s, integrating nuclear technologies into industrial applications and making them attractive to investors. These mini-reactors could play a crucial role in decarbonization, although technical challenges remain.
Italy's Nuclear Future: Navigating Opportunities and Obstacles
Energy group Edison, its French parent EDF, and oil company Eni are also working on nuclear projects. The EU has included another Italian project by Ansaldo and Enea in its funding program, involving a similar lead-cooled concept. Synergies could emerge from these projects, potentially culminating in the establishment of a joint venture exploring various mini-reactor options.
Enel CEO Flavio Cattaneo estimates it will take 10 to 15 years for mini-reactors to become operational. But political obstacles could derail the nuclear revival. Michele Perotti, director of the Centro Studi sull'Efficienza Energetica, which focuses on energy efficiency, warns that the debate must extend beyond a fleeting trend to determine the role nuclear energy could play in a system heavily reliant on renewable sources and what demand for facilities may arise from that.
Overall, the development of mini-nuclear reactors by startups like Newcleo presents an opportunity to contribute to Italy's energy future by providing a sustainable and decarbonized energy source. However, the technology must navigate regulatory hurdles, public skepticism, technological risks, financial investments, and collaboration challenges to achieve success.
Mini-nuclear reactors, such as those being developed by Newcleo, are set to play a significant role in Italy's energy sector, offering a potential solution to the country's energy needs in a sustainable and decarbonized manner. The technology, however, needs to surmount regulatory hurdles, public skepticism, technological risks, financial investments, and collaboration challenges to ensure its success.
Advancements in technology, like those being pioneered by Newcleo, are attracting investments from notable entities, including the Exor family holding of the former Fiat owners Elkann-Agnelli, and the Italian state-owned development bank CDP, suggesting a growing interest in nuclear energy in Italy.
