Greenfiber's Galicia Textile Plant Faces Setback as Government Denies Grid Connection

26-09-2025


Portuguese paper company Altri, through its joint venture Greenfiber, has announced it will challenge the Spanish government's decision to exclude its planned textile fiber plant in Palas de Rei, Lugo, from the national electrical grid planning for the next six-year period. The company claims it has not yet received official notification of the exclusion but characterizes the potential move as a "purely political decision" lacking technical justification. Greenfiber, created by Altri and Galician partner Smarttia to promote the factory project dubbed 'Gama,' stated it will analyze the technical-economic arguments once formally notified and consider filing administrative appeals.

The company emphasized that its manufacturing project already holds an environmental impact declaration (DIA) from the Galician regional government, which recognizes strict compliance with national and European legislation ensuring the project's sustainability and environmental respect. Greenfiber argues that the exclusion would contradict this environmental approval and force the territory to abandon a significant industrial investment. The joint venture maintains that the plant is designed to coexist with existing economic activities in the area while meeting all regulatory requirements for sustainable development.

Greenfiber has warned that it will not hesitate to use all available administrative appeal mechanisms to challenge the decision once the grid planning becomes public. The company also plans to reiterate its request for a meeting with the Ministry for Ecological Transition to clarify any technical or financial concerns that may have led to the exclusion. The potential grid connection denial threatens to derail the industrial project entirely, as lack of electrical access would make factory implementation impossible despite previous regulatory approvals.

The exclusion decision could have broader implications for regional development, with Greenfiber suggesting it would condemn the Lugo province to investment ostracism and hinder climate change mitigation efforts. The company contends that denying grid access contradicts reindustrialization goals for inland Galicia while overlooking the project's compliance with sustainability standards. The confrontation highlights ongoing tensions between industrial development objectives and infrastructure planning priorities in Spain's energy transition framework.

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