Fincantieri’s new JV to focus on circular economy-based waste management

Italian shipbuilder Fincantieri and compatriot Hera Group, a multi-utility company operating in the environment, energy, and water sectors, have established CircularYard, a joint venture to create an “innovative” waste management system at the former’s eight domestic shipyards with an approach rooted in circular economy.

As disclosed, around €13 million has been set aside for the design and construction of the new CircularYard facilities and the upgrade and optimization of the infrastructure and equipment, with estimates that this could bring a 15% reduction in undifferentiated waste during the first year.

It is understood that Hera Group will own 60% and Fincantieri 40% of CircularYard. In due time, the partners shared that they would work on expanding the venture’s operations to other Fincantieri sites abroad.

According to Fincantieri, the all-embracing goal of the bipartite endeavor is to provide sustainable solutions and promote transparency, safety, and quality throughout the supply chain.

Once fully operational, CircularYard is expected to process 100,000 tons of industrial waste per annum.

Specifically, as per the Italian player, CircularYard is set to oversee the entire waste management process, with a particular focus on the operational management of facilities to ‘better’ exploit disposable waste and recoverable residues.

The project will reportedly be done in two phases, with the initial target of managing 100,000 tons of waste and then increasing the fractions that can be exploited, especially iron, wood, plastic and paper, in order to boost the new facilities’ capability and handle larger quantities of waste over time.

As explained, subsequently, the model will be brought to full capacity via the building of treatment plants equipped with ‘modern’ technology through a string of structural initiatives, also based on the principles of circular economy, such as the design and development of chemical-physical plants for waste treatment and reuse, the expansion and upgrade of temporary storage facilities with new sorting areas and new copper recovery facilities.

“In keeping with our industrial plan on operational excellence, CircularYard represents a project that combines complementary expertise and allows us to apply best practices and technological innovation in the management and valorization of waste and production scraps. The ultimate goal is to pursue at the same time our targets on environmental sustainability and process efficiency in the sign of responsible growth, both from the point of view of sustainability and cost-effectiveness,” Pierroberto Folgiero, Chief Executive Officer and Managing Director of Fincantieri, highlighted.

“We are proud to put our advanced expertise, plant engineering excellence, and many years of experience in the circular waste management process at the service of the first western shipbuilder to promote the regeneration of urban and industrial areas. We are accelerating a new process that will make Hera Group the engine of the circular economy in the Italian industrial fabric, accompanying large companies throughout their environmental transition as they reduce production waste and maximize recovery,” Orazio Iacono, CEO of Hera Group, added.

In March 2024, Fincantieri shook hands with classification society RINA and energy major Eni aiming to create joint initiatives in the sphere of maritime transport decarbonization. Grounded on the development of complementary solutions to fuels already available for other hard-to-abate sectors, the three parties revealed they would jointly conduct a thorough analysis and evaluation of the most sustainable alternatives as the maritime industry sails toward its climate neutrality targets.

Within the shipping and shipbuilding landscape, Fincantieri ticked a number of boxes last year. In July 2024, the world’s largest cruise company Carnival Corporation contracted the Italian company for the design, engineering, and construction of a new cruise ship trio for the Carnival Cruise Line brand.

The vessels, powered by liquefied natural gas (LNG), are projected to become the largest ships ever built by Fincantieri and an Italian shipyard. They are slated for handovers in 2029, 2031 and 2033, respectively.

In December last year, Switzerland’s cruise line Viking took delivery of the hydrogen-ready Viking Vela, the first of a series of eco-friendly vessels being constructed by the Italian shipbuilder. This came just over a month after the two parties penned a deal for 2+4 cruise ships, slated for delivery in 2030, 2031, and 2032.