The decarbonization plan of the former Ilva steelworks in Taranto in southern Italy has taken another step forward thanks to an industrial testing facility located at the Hydra site in Castel Romano (Rome). During Industry Minister Adolfo Urso's visit to the site, the Italian low-carbon steel project received a concrete signal to accelerate.
Hydra, developed by the RINA group, is a mini-plant designed to test the use of hydrogen in all stages of steel production. The essence of the project is the production of direct reduced iron (DRI) using hydrogen, a material that can power electric arc furnaces, an important requirement for the complete decarbonization of the Taranto plant. According to Urso, the results of Hydra will have a “direct impact on the relaunch of the group and the site in Taranto.”
Hydra is a €110 million project approved by the European Commission and the Italian Ministry of Enterprise, involving a multidisciplinary team of around 120 engineers and including a dedicated training center focused on the storage and use of hydrogen.
Framework Agreement for Taranto website
At the end of August 2025, a draft agreement for the complete decarbonization of the former Ilva sites was signed at the Italian Ministry of Enterprise and Production (MIMIT) by all national and local authorities. The agreement provides for the closure of hot coal production facilities and the transition to inefficient electric smelting technologies. However, the project has not yet specified either the timing of the transition or the final location of the DRI center needed to supply pre-reduced iron.
The plan, called a “new chapter” by the President of the Puglia region, Michele Emiliano, marks “a turning point ten years in the making” for the Italian steel industry.
Hydra's strategic importance for Taranto
The developments launched through Hydra are of great importance as they provide a concrete open innovation platform for the entire national steel sector. In the absence of a dedicated DRI center in Taranto already in operation (or a final decision on its location), the mini-plant in Castel Romano becomes a key test site for demonstrating a scalable and completely environmentally friendly production model.
As previously reported by SteelOrbis , the transition to electric arc furnaces instead of coal blast furnaces is seen as a cornerstone
