
Project – Active
This profile is actively maintainedEPN & Greenpeace Spain

Project – Active
This profile is actively maintainedEPN & Greenpeace Spain
Why this profile?
The Gama project’s construction in a region already overwhelmed by more than 1.3 million hectares of eucalyptus monocultures would deepen biodiversity loss, intensify ecological collapse, and amplify the region’s vulnerability to climate change. The project threatens the biodiversity of the Ulla river basin, part of a protected Natura 2000 area, and endemic species. It will also destroy the cultural heritage of the region including the St. James Way, and will transform a rural area into an industrial zone.
What must happen
Due to the unmitigated risks and impacts involved, banks and investors should not provide any financing to this controversial project.
Sectors | Pulp, Paper and Paperboard Mills |
Location |
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Status |
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
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Website | https://greenfiber.es/ |
The Gama Project is a proposed pulp and fibre factory in Palas de Rei area in A Ulloa, Galicia, Spain. The factory is planned to produce up to 400,000 tons of cellulose and 200,000 tons of lyocell per year from eucalyptus. The project was proposed by Altri (75% ownership), a Portuguese pulp company, in collaboration with Greenalia (25% ownership), a Spanish renewable energy firm, through their joint venture, Greenfiber S.L..
- Phase I of the project aims to produce 250,000 tonnes/year of soluble cellulose and 60,000 tonnes/year of lyocell.
- Phase II of the project aims to produce 400,000 tonnes/year of soluble cellulose and 200,000 tonnes/year of lyocell.
- Eucalyptus consumption for the mill is planned to reach between 1.2 million tonnes and 2.4 million tonnes per year, which means that the already existing vast area of unsustainable eucalyptus monocultures would have to be increased even further to feed into this demand.
Eucalyptus monocultures, heavily promoted by the pulp industry, have already caused significant environmental damage, prompting moratoriums on new plantations, such as in Galicia’s until the end of 2025, a nationwide ban in neighbouring Portugal until 2030 and a regional ban in Spain’s Bizkaia province (Basque Country) until 2026.
If approved, the pulp mill could seriously harm the A Ulloa region’s natural environment, protected habitats, biodiversity, water resources in the Ulla basin, cultural heritage, and even public health.
Given these concerns, the project has prompted an exceptional level of opposition across the region, uniting local communities, environmental organisations, producers, and members of the academic sector in astonishing numbers of mobilisation, and should not proceed.
So far the project has received a favourable Environmental Impact Assessment. It is currently waiting to obtain Integrated Environmental Authorization.
Impact on human rights and communities
Impacts on communities and livelihoods: The project threatens to disrupt traditional and ecological farming practices, which many local families have relied on for generations. By altering the landscape and potentially polluting nearby soil and water sources, it risks impacting the quality of yields and forcing farmers off their land.
Pesticides sprayed on eucalyptus plantations and chemicals derived from the pulp process such as phosphorus, sulphates, and nitrogen, together with heat contamination of water from the pulp mill, could severely affect fish populations and aquatic ecosystems, jeopardising both small-scale fishing operations and established aquaculture businesses in the Arousa estuary – a high-value ecosystem with a very important community dedicated to artisanal fishing and extensive shellfish production.
With over 800 private plots of land affected, the project will impact many rural jobs in the region, and risks displacing residents and destroying community life.
Health impacts of emissions: According to the Environmental Impact Assessment (EIA) submitted by Greenfiber S.L., the joint venture between Altri and Greenalia, the projected annual emissions are:
- 252.5 tonnes/year of PM10, which is associated with increased risk or worsening of existing respiratory problems such as asthma and Chronic Pulmonary Obstruction Disease (COPD), increased risk of cardiovascular diseases such as heart stroke and heart diseases and increased risk of lung cancer;
- 577.6 tonnes/year of SOx, which is associated with increased risk or worsening of existing respiratory problems such as asthma, increased risk of chronic respiratory illness with long exposure, increased blood pressure;
- 2,771 tonnes/year of NOx, which is associated with increased risk of respiratory problems such as irritation, aggravated asthma, respiratory infections, chronic lung disease and others, increased risk of cardiovascular problems such as heart risk, hypertension, stroke, myocardial infarcts, increased risk of neurodegenerative diseases such as Parkinson’s and Alzheimer’s.
Impact on climate
Increased risk of wildfires: Climate change is making wildfire seasons longer and more intense. The GAMA project will use 1.2 million cubic metres of eucalyptus during Phase I. Eucalyptus plantations are known for being highly flammable, as they are highly water-thirsty trees, consuming up to 60 litres of water a day, draining the soil and increasing the risk of large wildfires. To supply eucalyptus demand for the planned pulp plant, Galicia will probably have to increase the area of its eucalyptus monocultures by 190,000 hectares in a region already oversaturated with eucalyptuses and that already struggles every year with forest fires.
The growing number of large wildfires due to the propagation of eucalyptus monocultures further contributes to climate change by emitting more CO2. Studies estimate that, between 1997 and 2016, wildfires worldwide are responsible for emitting 8 billion tonnes of CO2 per year.
Over the past years, eucalyptus plantations in Europe, particularly in Portugal and Spain, have been significantly affected by wildfires. For example, the 2017 Pedrógão Grande wildfires in Portugal resulted in 66 fatalities and burned nearly 50,000 hectares. Satellite mapping indicated that eucalyptus and pine plantations comprised approximately 70% of the burned area. In September 2023, wildfire consumed over 21,000 hectares around Albergaria-a-Velha, also in Portugal, an area with extensive eucalyptus plantations. The Navigator Company, a major eucalyptus pulp producer, confirmed its plantations were affected by the September fires, but said the eucalyptus tree itself was not the main cause, pointing instead to strong winds, high temperatures and low humidity at the time. In 2022, the Boiro wildfires near A Coruña in Northern Galicia, Spain, burned approximately 2,200 hectares.
Impacts on carbon emissions: The eucalyptus monoculture plantation model captures less carbon dioxide than native species, as trees are cut after just a few years, impacting these plantations' ability to store carbon.
The company misleadingly presents the burning of woody biomass as green energy. Energy from woody biomass is increasingly recognized as a high-carbon source of energy; it emits more CO2 than coal per unit of energy, and the increased logging rate would further exacerbate wood consumption and generate emissions, undermining Spain’s climate targets.
Impact on nature and environment
Overconsumption of pulp: The project’s demand for eucalyptus is estimated at 1.2 million cubic metres during the project’s first phase. Galicia already produces 70-90% of Spain’s eucalyptus volume, with over 420,000 hectares of eucalyptus plantations.
Although this part of the Serra do Careón area was included in the proposed expansions of the Natura 2000 Network drafted by the Xunta de Galicia in 2008 and 2012, these proposals were never implemented, despite the fact that Galicia has the smallest share of protected Natura 2000 territory in Spain (just 12% of Galician territory). While the Altri project cannot be directly linked to the decision not to proceed with those earlier expansion plans—given that it came much later— the area's exclusion from Galicia's 2025 Green Infrastructure Strategy does coincide with the project's development. This exclusion, while distinct from the earlier Natura 2000 proposals, still has important implications for nature protection and restoration efforts under the EU’s Nature Restoration Law.
Water usage and discharge: Altri is requesting a permit that will allow it to consume 46 million litres of freshwater from the Ulla River per day, equivalent to 18 Olympic-sized swimming pools or the daily water use of over 300,000 people. The company is applying for a 75-year permit, without any assessment of the future effects of climate change on the water supply in the region.
The pulp mill will discharge 30 million litres of treated wastewater per day. The water will be discharged to the Ulla River, part of the Natura 2000 network, above the catchment area, with the consequent impact on the entire basin and probably on the Arousa estuary, damaging biodiversity, altering the salinity and nutrients in the water, with a serious impact on coastal ecosystems and its productive sectors.
Impact on habitats: The expansion of eucalyptus monocultures will negatively affect local and regional wildlife and biodiversity, as this report from the Galician Council of Culture highlights. The eucalyptus is a highly flammable, highly water-thirsty tree that drains the soil, increases the risk of large wildfires and prevents any wildlife from flourishing, directly countering the much-needed efforts to increase biodiversity.
The land used to build the pulp mill contains habitats of community interest, directly impacting endangered endemic species (three of them strictly endemic: Santolina melidensis, Armeria merinoi and Leucanthemum gallaecicum).
Within the scope of the project, more than 140 bird species have been recorded, of which four are included in the Galician Catalogue of Endangered Species and six in the Spanish Catalogue of Threatened Species, as organizations such as Birdlife/SEO have denounced. The Galician government recognises at least 27 endangered species that will be impacted directly by the project, three of them being unique in the world.
In addition, other endangered species would be affected in the Ulla River. A report from the Galician Council of Culture reflects these concerns. Another report of the Galician Society of Natural History, which seats in the Galician Council for the Environment and Sustainable Development of the Xunta de Galicia, points to the several river species such as the Margaritifera mussel that will be affected by the effluent discharges in the river.
Experts consider this region “one of the most important zones of the Iberian Peninsula" for plant biodiversity, making it particularly unsuitable for a project of such scale and impact such as this.
Impact on pandemics
There is common agreement among the scientific community that a healthy environment and well-functioning biodiversity may represent a decisive factor in preventing pandemics, while eroded habitats and disturbed dynamics of biodiversity is where the transmission of diseases to humans from animals may likely happen. Avoiding the expansion of monocultures in Galicia is therefore a priority.
The total estimated cost of Phase I of the project is €900 million. The costs for Phase II are not yet known. Altri is requesting up to €250 million in public aid from the European Union. The remaining funding will come from private or development finance institutions.
The project aims to secure financing from the public sources, including EU Next Generation Funds. However, the project does not seem to comply at all with the DNSH (Do No Significant Harm) principle, as NextGenerationEU funds rules state. A report by Ulloa Viva Platform was submitted to the European Commission denouncing this DNSH violation.
Potential funders of this project are:
- ABANCA is a potential private lender for this project, since its headquarters are in Galicia.
- Santander, Nomura and Fiera Capital are all past private lenders to Greenalia in different projects. (source: IJGlobal database)
- Instituto de Crédito Oficial and the European Investment Bank are past public lenders to Greenalia. (source: IJGlobal database)
- Banco Português de Investimentos (BPI) is a past private lender to Altri. (Source )A non-executive director at Altri, Maria do Carmo Guedes Oliveira, worked for BPI for 37 years and was responsible for Corporate & Investment Banking. (Source)
- Macquarie Asset Management has previously lent €97 million to Greenalia. (source: IJGlobal database)
Altri: an unsustainable headquarters
Xunta, Altri and Greenalia intend to install a pulp and lyocell factory in the center of the country. Or that it would be a “sustainable” and “environmentally friendly” project, completing yet another attempt to profit from capitalism savage the resources of our earth. In its defense, the neighborhood of Ulloa is organized, protecting its rivers, its air and its various undertakings from this attempted plunder.
Altri, un monstruo de celulosa en el corazón de Galicia
La empresa Altri quiere construir una enorme fábrica de celulosa en el corazón de Galicia que pone en peligro su naturaleza y a sus habitantes. Hemos hablado con las personas que se verían afectadas por este monstruo y sus testimonios son desgarradores.