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

