Galician Government Ends Altri Pulp Mill Project After Years of Protests and Lack of Funding

Xunta de Galicia has officially ended the investment process for the construction of a giant pulp and textile fibers factory by the Portuguese group Altri in the town of Palas de Rei. The GAMA project, presented by the regional People's Party government as strategic for economic development, is being archived after more than four years since its announcement. The direct cause is the lack of ensured power infrastructure after the central government excluded the investment from the national transmission grid expansion plan for 2025–2030. Since 2009, the People's Party has continuously governed in Galicia, building a model of regional stability based on a strong Galician identity within the Spanish state.The decision of Xunta de Galicia represents a victory for a broad social and ecological movement. Ulloa Viva has been organizing mass protests for months, arguing that the "macro-pulp" mill would destroy the region's unique landscape, threaten agriculture and pilgrimage tourism related to Camino de Santiago, and deplete water resources. This decision comes at a symbolic political moment. The President of Galicia, Alfonso Rueda, is just celebrating the second anniversary of his victory in the February 2024 regional elections. „Galicia ten un modelo propio de estabilidade que nos permite tomar decisións pensando exclusivamente no interese de todos os galegos.” (Galicia has its own model of stability that allows us to make decisions thinking exclusively in the interest of all Galicians.) — Alfonso Rueda In an opposition mid-term analysis, representatives of PSdeG and BNG contrast Rueda's "triumphalism" with what they see as a deteriorating state of public services, particularly in healthcare and housing. Opponents of the project point out that social pressure and the central government's decision in Madrid to exclude the project from the PERTE de Descarbonización Industrial program, which deprived it of part of the requested EU funding, played a key role in blocking the investment. Without this funding and without a connection to the national power system ensured by the grid operator, Altri was unable to demonstrate a realistic power supply path for the facility – a necessary condition for obtaining an integrated environmental permit. History of the Altri Project in Galicia: October 2021 — Project Announcement; February 2022 — Formation of Ulloa Viva; September 2025 — Lack of Grid Plan; 20 February 2026 — Official Archiving Representatives of the Portuguese conglomerate maintain that they are analyzing alternative technical solutions, but the regional administration has determined that the current proceedings cannot continue. This decision ends one of the biggest environmental and social controversies in Galicia in recent years, setting a precedent for future investments with potentially significant environmental impact.