Caspian Report - Issue: 07 - Spring 2014

as illustrated by the Ilva case. Ilva is
Europe’s biggest steel factory, located
near Taranto, 130 km from San Foca,
and owned by the Riva Group, one of
world’s largest steelmakers. In July
2012, Ilva was forced to close after
a judge ordered an asset freeze in
an environmental probe. The court
dispute centres on studies suggesting
that up to 386 people might have
died of cancer over the past 13 years,
and that people living downwind of
fumes from the plant have suffered
negative health effects. The history
of the Ilva industrial complex dates
back to the beginning of the 20th century.
The developments of July 2012
are a single chapter in a very long
struggle involving the plant’s high
pollution levels, environmental risks
and employment issues: the factory
employed some 12,000 workers, and
it was the largest private employer
in the Apulia Region. The needs and
the feelings of the local population on
the subject were expressed on April
14, 2013, when a referendum on the
future of Ilva took place. Asked if they
wanted the plant to shut down i, the
majority of the population (80.4%)
did not vote, indirectly supporting
the preservation of workplaces.
The big coal plant of Cerano, located
10 km south of Brindisi and 40 km
north of Melodugno, also faces heavy
criticism. It is a 2,600 MW plant that
burns imported coal. Given the low
price of coal compared to gas, it is
running at full speed. According to
environmentalists, it is one of Europe’s
most polluting plants. In reality
it is an efficient and modern plant
emitting a lot of CO 2
simply because
it produces a lot of electricity using
large quantities of fossil fuel.
Brindisi is famous for its international
gas industry, particularly for
Brindisi is famous for its international gas
industry, particularly for the LNG terminal
that BG fought - unsuccessfully - to build for
almost a decade.
the LNG terminal that BG fought - unsuccessfully
- to build for almost a
decade. The project, along with ten
more all over Italy, was drawn up at
the beginning of the 1970s and. Then,
having been forgotten for years, it
was resurrected in 2000 by the UK
gas company. At the beginning, the
proposal was welcomed, but immediately
delays emerged. In August 2001,
the UK Prime Minister Tony Blair sent
a letter to the Italian Prime Minister
Silvio Berlusconi complaining about
the delays in the development of the
project. The Berlusconi government
then forced Enel, the Italian power
utility, to enter into the project, in a
bid to speed up the process. However,
that did not happen, and later in 2005,
Enel, having understood the difficulties
facing the LNG terminal, decided
to drop out. Despite all the legislative
and bureaucratic hurdles, the British
company succeeded in obtaining
the relevant authorisations from local
authorities, but new elections in
2006 brought a new administration
that rejected and appealed against
it. Then, an investigation into bribes
paid to obtain the first authorisation
was launched, bringing further
problems. The drop in domestic gas
consumption, linked to the 2008 economic
crisis, made the project much
less attractive. Finally, in March 2012,
after eleven years and an investment
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CASPIAN REPORT, SPRING 2014