Amid rising energy prices and geopolitical uncertainties, the Italian government is planning a nuclear power renaissance. The last Italian nuclear power plant ceased operations more than 30 years ago, but the ongoing Ukraine war has highlighted the vulnerability of energy supplies. Additionally, high energy prices put Italy's industry at a competitive disadvantage compared to Spain and France. As a result, Prime Minister Giorgia Meloni's government is aiming to reintroduce nuclear energy, with a bill expected in the coming weeks. Italy’s push is also fueled by the presence of promising startups and industrial collaborations.

A referendum in 1987 led to the shutdown of reactors, and a 2011 referendum blocked government plans to restart a nuclear programme. However Italy still boasts a notable nuclear industry, with around 600 companies generating 4 billion euros annually in revenues, mainly from overseas projects.

Newcleo, an Italian startup founded in 2021 by physicist and entrepreneur Stefano Buono, aims to operate nuclear mini-reactors within the next decade. „We want to produce safe, sustainable, and competitively priced energy“, says Elisabeth Rizzotti, the company's COO and co-founder. The company, which employs around 200 young professionals, is focused on simulations, safety studies, and design for a non-nuclear prototype set to operate in 2026 at the decommissioned Brasimone reactor south of Bologna.

The mini-reactors, which will be the size of a factory hall, will use liquid lead for cooling. By 2030, Newcleo plans to start producing nuclear fuel from reprocessed spent fuel (MOX) from existing power plants. Buono claims this waste can be recycled 200-300 times, with the remaining material usable in nuclear medicine or for batteries. „We are doing what Einstein dreamed of: turning matter into energy“, he said, emphasising the project's circular economy principles.

The startup, which employs 900 people in Turin, recently relocated its headquarters to Paris, and also operates in London, Belgium, Switzerland, and Slovakia. It has raised 537 million euros from investors, including the Exor family holding of the former Fiat owners Elkann-Agnelli. According to Rizzotti, an additional 3 billion euros will be needed for development by 2030. The Italian state-owned development bank CDP is reportedly considering investing up to 200 million euros.

Newcleo has applied for a license with French authorities. In France, where there is a large nuclear industry, the company aims to build a nuclear reactor prototype by 2031, with the first reactor set for serial production by 2033. Experts from the Karlsruhe Institute of Technology (KIT) view this timeline as highly optimistic. Rizzotti estimates 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 nuclear 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 notorious.

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 vital role in decarbonization, although technical challenges remain.

Energy group Edison, its French parent EDF, and oil company Eni are also working on projects. The EU has included another Italian project by Ansaldo and Enea in its funding programme, also involving a lead-cooled concept. Synergies could emerge from these and other projects, including with Newcleo. Enel, Eni, and Ansaldo Nucleare are also planning to form a company to explore various mini-reactor options.

Enel CEO Flavio Cattaneo estimates it will take 10 to 15 years for mini-reactors to become operational. But a new referendum could put a halt to the nuclear renaissance. Michele Perotti, director of the Centro Studi sull’Efficienza Energetica (CESEF), which focuses on energy efficiency, notes that it is unclear „what lies ahead in the coming months and years.“ While there is interest and expertise, for the debate to go beyond a fleeting trend, „it is crucial to determine the role nuclear energy could play in a system that heavily relies on renewable sources, and what demand for facilities may arise from that.“