Santiago de Compostela, Spain – The Galician regional government, led by President Alfonso Rueda, has definitively halted the proposed Altri factory project in Palas de Rei, Lugo, bringing an end to a contentious industrial development that sparked widespread protests and political debate. The decision, announced on February 20, 2026, centers on the lack of guaranteed electrical connectivity for the massive cellulose plant, effectively shelving what was once touted as a cornerstone of Rueda’s economic agenda. This move follows months of intense opposition from environmental groups, local communities, and political parties, who raised concerns about the project’s environmental impact and sustainability.
The proposed plant, a joint venture between Portuguese company Altri and Spanish entrepreneur Manuel García Pardo under the name Greenfiber, aimed to produce 400,000 tons of soluble cellulose and 200,000 tons of textile fibers annually. However, the project quickly became mired in controversy, shifting from initial presentations as a sustainable textile factory to revelations of a primarily cellulose-focused operation. This change, coupled with concerns over water usage and potential pollution, fueled a robust public backlash. The Galician government’s decision underscores the growing tension between industrial development and environmental protection in the region, and highlights the importance of infrastructure planning in attracting large-scale investment.
Decision Rooted in Lack of Electrical Infrastructure
According to a statement released by the Galician government, the decision to deny Altri the necessary Integrated Environmental Authorization stems directly from the central government’s failure to guarantee a reliable electricity connection for the facility. María Jesús Lorenzana, the Galician Conselleira (Minister) of Economy, confirmed the decision, stating that the project file will be formally archived. “The expiry of the file comes from the fact that the company cannot justify the technical formula in the project for its connection,” Lorenzana explained, adding that the responsibility for providing the necessary infrastructure rested with the central government. La Voz de Galicia reported that without a connection to the electrical grid, the project cannot proceed.
The Galician government asserts that the central government’s energy planning for 2030 does not include provisions for the required electrical connection. This lack of foresight has effectively stalled the project, despite Altri’s attempts to find alternative solutions. The company, in a statement, expressed its disappointment with the decision and indicated it is exploring “different technical options” to secure the necessary connection, independent of the national grid’s future plans. However, Lorenzana indicated that the likelihood of inclusion in future energy plans is slim, leaving the project’s future uncertain.
Years of Protest Culminate in Project’s Demise
The Altri project faced sustained opposition from a broad coalition of groups for over a year and a half. Protests reached a peak in December 2025, with thousands demonstrating in Santiago de Compostela, the Galician capital, and other cities across the region. El País detailed how the initial presentation of the project as a sustainable textile factory was later revealed to be largely focused on cellulose production, fueling public distrust. Concerns were also raised about the project’s potential impact on local water resources and the surrounding ecosystem.
The protests were not limited to environmental concerns. Critics also questioned the economic benefits of the project, arguing that the promised jobs would not outweigh the environmental costs. Local communities feared the impact on tourism and agriculture, key sectors of the Galician economy. The scale of the opposition reportedly “cornered” the Rueda administration, according to RTVE.es, highlighting the political pressure faced by the regional government.
Rueda Defends Industrialization Despite Setback
Despite the setback, President Rueda has reaffirmed his commitment to industrial development in Galicia. Speaking after the announcement, Rueda stated that the Galician government “will not let a single opportunity pass” to attract investment and create jobs. He emphasized that the decision regarding Altri was based solely on the lack of electrical infrastructure and should not be interpreted as a rejection of industrial projects in general. Rueda’s comments reflect a broader effort to position Galicia as a hub for innovation and economic growth, despite the challenges posed by environmental concerns and infrastructure limitations.
The shelving of the Altri project represents a significant political defeat for Rueda, who had championed the development as a key component of his economic strategy. The project was initially presented by his predecessor, Alberto Núñez Feijóo, now the national leader of the People’s Party (PP), further adding to the political implications of the decision. The Galician government now faces the task of identifying alternative investment opportunities and demonstrating its commitment to sustainable economic development.
The Role of the Central Government
The Galician government has repeatedly placed the blame for the project’s failure squarely on the central government in Madrid, accusing it of failing to provide the necessary infrastructure support. Lorenzana specifically criticized the central government’s energy planning, stating that it did not prioritize the electrical needs of the region. This criticism reflects a broader pattern of tension between the Galician regional government and the central government, particularly regarding issues of economic development and infrastructure investment.
The central government has not yet issued a formal response to the Galician government’s accusations. However, sources within the Ministry of Energy Transition have indicated that the decision to exclude the Altri project from the 2030 energy plan was based on technical considerations and a prioritization of renewable energy projects. This explanation has been met with skepticism by the Galician government, which argues that the decision was politically motivated.
What’s Next for Altri and Galicia?
With the Altri project effectively dead, the company now faces the prospect of either abandoning its plans for a Galician facility or seeking alternative locations with more favorable infrastructure conditions. Altri has indicated it is analyzing its options, but the future of the project remains highly uncertain. The company has three months to present any objections to the Galician government’s decision to archive the project.
For Galicia, the immediate priority is to address the underlying infrastructure deficiencies that contributed to the Altri project’s failure. The regional government has announced plans to operate with the central government to develop a comprehensive energy plan that addresses the region’s long-term infrastructure needs. The government also intends to focus on attracting investment in sectors that align with its sustainability goals, such as renewable energy and eco-tourism.
The Altri saga serves as a cautionary tale about the importance of careful planning, stakeholder engagement, and environmental considerations in large-scale industrial projects. It also underscores the critical role of infrastructure in attracting investment and fostering economic growth. The outcome of this situation will likely shape the future of industrial development in Galicia for years to approach.
The next step in this process will be Altri’s response to the formal archiving of the project, expected within the next three months. The Galician government will then assess any submitted objections before finalizing its decision. Readers are encouraged to follow updates on this story and share their thoughts in the comments below.