The Interdepartmental Centre for Energy, Environment, and Transport “Giacomo Ciamician” of the University of Trieste has published, in collaboration with WWF Italy, the report entitled ‘The Steel Sector in Italy: Criticalities and Opportunities’: the innovative study explores the sustainability prospects of the Italian steel sector, highlighting current challenges and possible future scenarios.

The scientific contribution proposes a systemic view of the steel industrial sector, divided into several sections analysing global, European and Italian steel production, associated greenhouse gas emissions and decarbonisation opportunities related not only to environmental, but also to economic and social aspects. 

The work is primarily aimed at companies and institutions driving the transition to climate neutrality targets by 2050, considering the interests of organised civil society and trade unions. 

Innovative elements of the study include the quantitative and qualitative analysis of steel production, with a focus on the different production processes, including the electric arc furnace (EAF), the integrated steel mill (BF-BOF) and direct reduced iron (DRI) plants, short- and long-term decarbonisation strategies, with a focus on emerging technologies and renewable energies, and economic and employment assessments of transition scenarios towards more sustainable production.

The University of Trieste research team includes Andrea Mio from the Department of Engineering and Architecture (DIA), Romeo Danielis from the Department of Economics, Business, Mathematics and Statistics 'Bruno de Finetti' (DEAMS) and Giovanni Carrosio from the Department of Political and Social Sciences (DiSPeS). 

The UniTS team worked closely with WWF Italy to develop a detailed and multidisciplinary analysis of the sector. The project was supervised by Mariagrazia Midulla of WWF Italy, ensuring that the recommendations were aligned with environmental best practices.

'This report,' says Andrea Mio, who scientifically coordinated the study, 'represents an important step towards greater sustainability of the steel sector in Italy. The proposed strategies aim to reduce CO₂ emissions and promote the use of renewable energy, thus contributing to national and European climate goals.’

The study outlines three decarbonisation scenarios (Conservative, Prospective and Desirable), each with different environmental, economic and employment implications. The scenarios provide a comprehensive picture of possible developments, highlighting the benefits of a transition to low-carbon technologies.

The overall assessment of the decarbonisation scenarios presented by the researchers highlights some key considerations. From an environmental perspective, reducing CO2 emissions must be one of the main objectives. Among the different scenarios outlined, the desirable one envisages a significant decrease in emissions through the adoption of innovative technologies and the use of renewable energies.

From an economic perspective, the investments required for the transition to more sustainable production are considerable, but the long-term benefits, including energy cost savings and improvements in the competitiveness of the sector, are significant.

As far as employment effects are concerned, the transition to more sustainable steel production will lead to substantial changes, with likely growth in sectors related to renewable energy production and innovative plant maintenance.

Some technical details of the three scenarios

• Conservative Scenario: this is a business-as-usual scenario and envisages rather limited corrective actions, mainly related to the capture and reuse of CO₂ produced through existing technologies (BF-BOF and EAF). The overall reduction in emissions by 2050 will be -10.02 MtonCO₂ (-53.37% compared to 2022). Annual investments will be € 1.478 billion, with an estimated LCOP of € 612.76/tonne and an employment level of 42,600 in the steel sector and about 4,000 in the renewables sector.
• Prospective Scenario: DRI (Direct Reduced Iron) technology is introduced here using natural gas and biomethane with CO₂ capture. The reduction in emissions will be -12.735 MtonCO₂ (-67.85% compared to 2022). As in the previous case, CO2 capture is necessary for decarbonising this scenario. However, its implementation requires very stringent conditions to be conducted in a sustainable manner, conditions that are presented in the report. Annual investments will be € 1.845 billion, with an estimated LCOP of € 607.28/tonne and an employment level of 39,400 in the steel sector and about 5,000 in the renewables sector.
• Desirable Scenario: this scenario envisages the use of DRI technology based on green hydrogen and renewable sources coupled to the national energy mix. The overall emission reduction will be -12.735 MtonCO₂ (-67.84% compared to 2022), without introducing CO2 capture and with a potential further reduction linked to the progressive decarbonisation of the national energy sector. Annual investments will amount to € 1.386 billion, with an estimated LCOP of € 621.61/tonne and an employment level of 39,400 in the steel sector and more than 12,000 in the renewables sector.

In Memoriam

The authors also wished to honour the memory of Maurizio Fermeglia, full professor of Principles of Chemical Engineering and former Rector of the University of Trieste, who was passionate about environmental sustainability issues, a WWF collaborator and the association's delegate in Friuli Venezia Giulia. 

‘Maurizio contributed to the initial development of the work and helped us to combine scientific rigour with a climate and environmental vision in this report. He is greatly missed by all of us, and we want to honour him and remember him also on this occasion,’ reads the report's dedication.

Il report completo è disponibile sul sito del WWF Italia