Exclusive-Italy eyes Westinghouse, EDF as partners for the nuclear-power firm, sources say

By Giuseppe Fonte, Francesca Landini and Angelo Amante

ROME (Reuters) -Italy is considering U.S. energy group Westinghouse or France's EDF (EPA:EDF) as potential international partners for a state-backed company that will build advanced nuclear reactors in the country, two sources familiar with the matter said on Thursday.

Nuclear-fired power plants are prohibited in Italy following referendums in 1987 and 2011.

But the government plans to draft by the end of this year rules to allow the use of new nuclear-power technologies, the energy minister said on Wednesday, reiterating his intention of lifting the ban.

The right-wing administration headed by Prime Minister Giorgia Meloni thinks small modular reactors and advanced modular reactors could help decarbonize the country's most polluting sectors, including steel, glass and tile makers.

EDF confirmed to Reuters it was interested in supporting the Italian project.

"We are keen to support the SMR option in Italy", an EDF spokesperson said, adding the French group was in active talks with Italian companies and institutions through its Italian subsidiary Edison.

In July, EDF and Edison signed a memorandum of understanding with Italian state-owned Ansaldo Nucleare and the association of Italian steel makers Federacciai for the use of nuclear power in the sector.

Ansaldo Nucleare and start-up Newcleo would also be part of the government project to build SMRs, the sources said. Newcleo declined to comment.

"Westinghouse and EDF would be the best (international) partners," one senior government source told Reuters.

Westinghouse was not immediately available to comment.

Italy's Energy Minister Gilberto Pichetto Fratin recently appointed a legal expert to help him draft a new law to be submitted to parliament next year.

During a recent parliamentary hearing, Pichetto said Italy would be able to save 17 billion euros ($19 billion) on the cost of decarbonising the economy by 2050, should it include at least 11% of nuclear power in its energy mix.

Despite the nuclear ban, Italy has retained key expertise in the sector.

State-controlled utility Enel (BIT:ENEI) operates nuclear power stations in Spain and energy major Eni is investing in a project to develop a nuclear-fusion reactor in the United States.

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