Metinvest Adria's green steel project at the former Lucchini site in Piombino, Italy, is a major undertaking with an estimated total investment of around $3.2 billion, making it one of Europe's largest industrial projects in the steel sector. The Italian government, recognizing its strategic importance, has provided substantial support, including $285 million in incentives approved by Invitalia, the national agency for managing Development Contracts. This funding is specifically earmarked for the construction of electric furnaces and related production infrastructure for a facility that aims to produce over 2.7 million metric tons of low-emission steel annually, aligning with European decarbonization goals.
The project, a joint venture between Metinvest Group and Danieli, received further institutional backing through a program agreement signed in July 2025. This agreement involved Metinvest Adria and various Italian ministries, including the Ministry of Enterprises and Made in Italy (MIMIT), the Ministry of Infrastructure and Transport (MIT), the Ministry of the Environment and Energy Security (MASE), and the Ministry of Labour, along with the Tuscany regional authority and the Municipality of Piombino. The initial investment mentioned in this agreement was around $2.5 billion, with $1.5 billion allocated for Danieli's technology supply, and an anticipated creation of about 1,100 stable jobs.
Despite significant progress on the institutional and financial support fronts, the project has not yet moved into the operational construction phase. Key remaining steps include finalizing the financing structure with a banking pool, securing a SACE insurance guarantee (pending approval from the Ministry of Economy and Finance), completing environmental, urban, and technical permitting processes, and initiating preliminary on-site activities like demolition and site preparation. Timelines suggest a start of works by 2026 and full operation by 2029, contingent on these remaining procedures. The Italian government has reiterated its commitment to accelerating infrastructure and authorization processes, and an additional $92 million has been allocated to complete the northern pier in the Port of Piombino, a critical piece of infrastructure for the project.
