Marcegaglia provides low-carbon energy for the future plant in Fos-sur-Mer
Marcegaglia has temporarily secured long-term supplies of low-carbon nuclear energy for its future rolled steel plant in Fos-sur-Mer in southern France, Kallanish reports from a company source.
The Italian steel group has signed a letter of intent with French energy company EDF for a ten-year supply contract that will cover 50% of the future facility's energy needs. The agreement, which is expected to be concluded by the end of summer, aims to provide stable, carbon-free electricity at competitive prices, supporting the group's decarbonization strategy and the long-term competitiveness of the industry in France.
"We are strengthening our decarbonization commitments for the benefit of all the Group's products. This will allow us to use environmentally friendly electricity that does not contain carbon dioxide, is stable, affordable and competitive. The nuclear option is a key step towards achieving climate neutrality goals, especially in sectors like ours that are considered difficult to recover," Antonio and Emma Marcegaglia comment in a joint statement obtained by Kallanish.
Marcegaglia plans to invest more than 750 million euros ($868 million) in the Ascometal project. in Fos-sur-Mer, acquired in 2024. The project includes increasing the productivity of the electric arc furnace, the construction of a continuous casting plant and the installation of a new hot rolling mill. Steel production at the plant is expected to increase from 150,000 tons per year to 2.1 million tons per year, with a potential expansion to 2.5 million tons. Production is scheduled to begin by mid-2028.
"The project, recognized in France as a project of great national interest, is aimed at solving environmental problems and developing efficient and sustainable production methods. One of the key conditions for moving forward was a constructive dialogue with government authorities, including administrative permits, and access to competitive energy supply," the company said in a statement.
After the Ascometal acquisition last year, Foc–sur-Mer was renamed Marcegaglia Foc-sur-Mer. The plant will produce hot-rolled coils and will retain its electric arc furnace. Jacques-Yves Flock, former manager of ArcelorMittal in Dunkirk, has been appointed director of the plant. The company will be transformed with an emphasis on environmental friendliness and energy efficiency, production of scrap steel and low-emission direct reduction cast iron.
The first engineering surveys are scheduled for early next year. Currently, the plant produces bearing and structural steel, including