Italian steel producer Marcegaglia has taken a major leap in its green transition journey. The company has signed a letter of intent with France’s EDF to secure long-term low-carbon nuclear electricity for its upcoming Fos-sur-Mer steel plant. This partnership marks a strategic alignment with Europe's decarbonization goals and highlights Marcegaglia’s ambition to emerge as a leader in green steel production.
Long-term energy agreement to power green transition
Marcegaglia and Électricité de France (EDF) have laid the groundwork for a 10-year electricity supply deal, expected to be finalized by end of summer 2025. The agreement will supply 50 percent of the Fos-sur-Mer site’s total energy demand, including future plant expansions, with nuclear-generated electricity beginning in 2029.
As previously reported by SteelOrbis, Marcegaglia plans to invest over €750 million to revamp the former Ascometal site, acquired in 2024. The industrial plan includes the installation of a new electric arc furnace (EAF), a continuous casting line, and a state-of-the-art hot rolling mill. Once fully operational, the plant is expected to scale up from its current 150,000 mt capacity to 2.1 million mt per year, with the potential to reach 2.5 million mt. Production is slated to begin in mid-2028.
EDF's nuclear backbone fuels sustainability goals
EDF, whose power mix includes over 94 percent decarbonized sources - mainly nuclear and renewables - will ensure a stable and low-carbon energy supply to the site. This supports Marcegaglia’s dual objective of scaling up production and reducing carbon footprint. French industry and energy minister, Marc Ferracci, emphasized the long-term impact of the deal, noting, “This is a contract for the future that commits future generations, but also a contract for competitiveness”.
As also highlighted by SteelOrbis, the Fos-sur-Mer site is a cornerstone of Marcegaglia’s strategy to vertically integrate its steel production value chain and become a major European hub for green steel. The project will also create 380 new jobs while safeguarding the existing 320 positions, reinforcing the group’s commitment to local industrial development and employment.