Within the framework of the current market liberalisation, the existing plant is hardly exploited due to the high costs of oil and will likely be shut down without a structural project aimed at increasing its competiveness.
Moreover, the cost of electricity in Italy is substantially higher than other European tariffs, because its energy production mix is heavily dependent on gas and oil (over 60%). These are expensive sources of energy supplied by countries with unstable scenarios , while electricity in Europe is mostly dependent on nuclear energy and coal (over 56%).
Coal is the world’s primary fuel for electricity generation because it’s largely available and can be easily supplied at competitive costs.
It is widely used mainly because it is safe to handle and transport and is not flammable, nor explosive.
The oil-to-coal conversion project therefore aims at: