The Altri Project: A Bright Promise or Looming Controversy?

In April 2022, the Portuguese company  Altri  made headlines by selecting  Palas de Rei  in Lugo, Spain, as the site for a groundbreaking plant intended for the production of  textile fibers  (Lyocell). Positioned as “ the most important project ” in the Galician bid for  Next Generation  funds, it garnered initial political backing. However, as time advanced, the conversation shifted, revealing a more complex reality as critics labeled it as a substantial *cellulose panel* initiative, signaling broader implications than merely a “biophilic” venture.

Fast forward three years, and the once-promising project now faces significant hurdles: the  central government  has excluded it from electrical planning until  2030 , placing it in jeopardy. This dramatic evolution raises concerns about its viability and the environmental implications it carries.

The Decision That Changes Everything: Without Substation, There Is No Project

This week, the  Ministry for Ecological Transition  formally excluded both the substation and network access required by Altri from its  2025-2030 electrical planning . As reported by  El País , the government’s priorities have shifted towards “more viable” investments that promise a greater socioeconomic return, aiming to avoid burdening consumers with projects that carry financial uncertainty. Meanwhile,  Greenfiber , the company formed in partnership with Altri and  Greenalia , argues that this decision is purely political, pledging to initiate legal action. The  People’s Party  (PP) of Galicia perceives this as a “punishment” towards the  Lucense  industry while local neighborhood and environmental groups celebrate the government’s decision, albeit cautiously.

The Central Government’s Stance

The Secretary of State for Energy claims that the requested substation and connection would solely serve this project, casting doubt on its financing viability. Additionally, estimates suggest that around  €250 million  in public aid will be necessary, raising questions about the network investments that might ultimately go underutilized. Altri responds firmly, asserting: “ Without connection, there is no investment ,” while vowing to exhaust all available resources.

The Xunta’s Position

The  Galician government  contends that the project complies with environmental standards, as indicated by a favorable ruling published in the  DOG  (Official Gazette). The Xunta maintains that the facility would be “ energetically neutral ” and accuses the central government of sidelining Lugo in terms of industrial development. This ongoing debate has sparked intense political friction, especially concerning verbal exchanges between  Alfonso Rueda , the Xunta’s leader, and  José Ramón Gómez Besteiro , the head of the  PSdeG  party.

Key Concerns from Environmental Groups

Local groups, including  Ulloa Viva , and NGOs like  Greenpeace , have raised alarms about three critical issues:

  • Water: The need for up to  46 million liters  of water daily from the  Ulla  River, with concerns about the consequent discharge of approximately  30 million liters per day , exacerbating eutrophication issues.
  • Raw Materials: The estimated annual consumption of wood could range between  1.2 million to 2.4 million tons  of eucalyptus, stirring ongoing debates about the ecological impacts of eucalyptus monoculture.
  • Emissions: A  75-meter chimney  will emit pollutants that could contribute to  acid rain , essential to monitor closely.

The Legal Battles Begin

As the electrical disputes unfold, legal battles are intensifying.  Adega  and the  Da Ría de Arousa  platform have lodged appeals against the water grant process, citing delays beyond the standard  18 months  allowed for resolution. In addition,  seven  local fishing guilds in the  Ulla-Arousa  region have joined the fight against Altri, underscoring the rising community opposition to the project.

What Lies Ahead?

With the exclusion from electrical planning, the future of the Altri project hangs in the balance, leading to a period marked by heightened scrutiny and likely intensified regulatory assessment. The reluctant support from the Xunta juxtaposes the realities of  legal and logistical complexity , leaving both environmental integrity and industrial ambitions at a crossroads. As various stakeholders contemplate the way forward, the dialogue between industrial opportunities and territorial preservation is more pertinent than ever, setting the stage for a critical discourse not just in parliamentary floors but also along the banks of the  Ulla River  and the shores of the  Ría de Arousa . The fate of the Palas de Rei plant encapsulates broader themes regarding ecological sustainability, industrial growth, and the delicate balance required to ensure both are realized without compromising either side significantly.

Image Credit: Greenpeace



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