MILAN - Italy aims to finalize by the end of 2027 a plan allowing the use of nuclear power energy again after it was banned almost 40 years ago, Energy Minister Gilberto Pichetto Fratin said in an interview published on Thursday by Italian daily Il Sole 24 Ore.

Prime Minister Giorgia Meloni's right-wing government has said small modular reactors and advanced modular reactors could help decarbonize Italy's most polluting industries, including steel, glass and tilemaking.

Nuclear-fired power plants are prohibited in Italy following referendums in 1987 and 2011 but the government is now drafting rules to lift the ban through the use of new nuclear-power technologies.

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"Italy is ready to return to nuclear power, a crucial choice that will not replace renewables but will complement them, ensuring a balanced and sustainable energy mix," Pichetto Fratin said, adding that a first draft law would be submitted for cabinet approval within the next two weeks.

Italy estimates it would save 17 billion euros ($17.67 billion) on the cost of decarbonizing the economy by 2050 if nuclear power made up at least 11 percent of its energy mix.

Pichetto Fratin said the Italian energy and climate plan (PNIEC) estimated that portion at up to 22 percent.

Italy has retained key expertise in the nuclear sector. State-controlled utility Enel 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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Italy is in talks with several companies including US energy group Westinghouse and France's EDF as potential partners for a state-backed company that will build advanced nuclear reactors in the country, while Enel, Ansaldo and defense company Leonardo are working on setting up a state-backed company to build nuclear reactors in Italy.