Endesa S A : has confirmed a development plan for €2,682 million and the creation of 1,361 jobs following the closure of the As Pontes thermal power plant

• The company would like to confirm Endesa's commitment to Galicia, assuring that the closure of the plant established by the Government will be accompanied by a social and economic development plan in the region that will enable the company to continue being an industrial benchmark in the area during the coming decades after being present in As Pontes for over fifty years.

Once proposed resolution to close the As Pontes thermal power plant had been presented, Endesa confirmed its future plans in Galicia with planned developments amounting to €2,682 million that will generate 1,361 jobs. All this is subject to the mandatory authorisations.

Endesa is neither leaving nor losing interest in As Pontes or Galicia. In support of this strategic commitment, Endesa has presented to the Ministry of Ecological Transition, as well as to the Regional Government of Galicia and the Council As Pontes, a social and economic development plan for the region that demonstrates its commitment to a fair Energy Transition process and the creation of value in As Pontes and the surrounding area.

A plan that shows a firm commitment to the social and economic development of Galicia, and this has been Endesa's hallmark for several decades in a number of Spanish regions.

The essential aim of this plan is to replace the 1,400 megawatts (MW) of coal-fired production at As Pontes with 1,300 MW of renewable energy, and it will also include a plan to dismantle the plant, to install new industrial projects on the, to promote logistical installations in the terminal of the port of Ferrol and to organise an ambitious training plan for the people from the surrounding area.

All Endesa's employees will also be relocated to other areas of the company, for dismantling, for future plans or they may opt for one of the voluntary redundancy plans. In this regard, Endesa appreciates the enormous effort that is being made and the flexibility to operate and maintain the installations in recent months, together with auxiliary companies.

Seven areas of action

The company has specifically confirmed to the institutions a plan with seven areas of action for the time when the plant closes down. First, the dismantling of the plant that will take approximately 4 years. This will include a training plan for more than 130 people who will participate in these tasks, giving priority to local employment, and those who actually worked at the plant. The request has been made and it is only pending the effective receipt of the resolution for closure.

In this regard, the second phase of the plan for the future, as soon as the authorisation for closure is confirmed, for Endesa to be committed to launching training plans giving priority, provided they meet the requirements, to workers from the local area, workers in auxiliary companies and employment for women.

This will be a reproduction of the initiative taken both in El Bierzo and in Andorra (Teruel) where more than 500 people were given training to work both in the dismantling of thermal power plants, as well as in the construction and maintenance of Endesa's renewable energy plants.

The third action consists of accompanying the closure of the plant with the processing of new renewable projects to convert the capacity of the plant into new clean power. This will involve the construction of 1,300 MW of wind projects which will create up to 2,300 jobs during the construction phase, and another 274 direct jobs during the estimated 25 years of useful life of the wind farms.

The electricity produced by these wind farms will support industrial projects presented by Sentury Tire, as well as an important PPA (Power Purchase Agreement) with Alcoa. To make this a reality, Endesa has already asked the Regional Government of Galicia for the strategic and structuring details of these wind-farm projects as required by law for wind energy in Galicia so they may be processed urgently.

New industrial developments

The fourth concerns the promotion of these new industrial developments on the land related to the plant. The company first specifically detailed the project with the tyre manufacturer Sentury Tire, to which it envisages transferring 26 hectares of land in As Pontes for the construction of a smart tyre factory. €477 million will be required to set the plant up and 750 jobs will be created. Endesa will invest a further €229 million to construct 191 megawatts of wind power to supply the factory by means of a PPA.

This factory will not only be a source of employment, but also an economic vector for the area by greatly increasing traffic in the terminal managed by Endesa in the outer port of Ferrol. A very significant increase in port activity in Ferrol is expected, both for the export of processed products and for the import of raw materials. The factory will generate an annual movement of 65,000 containers, three times the terminal's current traffic.

Endesa has also reached an agreement with Ence that envisages the transfer of 45 hectares of land from the old coal-fired plant where the company will invest €355 million in a bio plant for the recovery, development and production of recycled natural fibres from recovered paper and cardboard. The development of this initiative will enable the creation of 150 direct and 400 indirect jobs. This factory will also be an important economic lever for the Ferrolterra and A Mariña region and the wood production sector.

The third project to support the Galician industrial sector is a pre-agreement for a PPA with Alcoa focussing on the supply of electricity at a competitive price for 10 years from 816 MW of wind power, of which 611 are envisaged in the As Pontes area. This PPA would enable Alcoa to resume aluminium production after the downturn resulting from the increase in energy prices.

Activity with regard to logistics and production of green hydrogen

The fifth action is the new role with regard to logistics that Endesa is now undertaking, and will further strengthen as a result of these industrial projects in the terminal of the outer port of Ferrol. Endesa has compensated for the decline in coal traffic to the As Pontes thermal power plant at the terminal in the outer port of Ferrol with the transformation of this installation into a multi-client bulk terminal (transport and storage of bulk cargoes: Grain, minerals, etc.).

This has enabled the recovery of the volume of activity in the installation and was a key factor enabling the Port Authority of Ferrol-San Cibrao to close the first half of 2022 with a traffic growth of 18.4%.

The sixth action involves As Pontes having a green hydrogen generation installation, as a result of a project promoted by Endesa for an electrolyser of up to 100 MW that will be powered by wind projects in the area that already have the right of connection.

For the seventh action, Endesa also plans to create a strategic wind maintenance logistics centre for Spain in As Pontes. This new infrastructure will support the operation and maintenance of Endesa's 120 wind farms in Spain. This project involves the creation of 57 direct jobs. Another infrastructure will be created that will be used for wind-farm circularity operations to support a plan to strengthen Endesa's wind farms and will also involve security, safety and training actions.

Endesa's seven areas of action for the future of As Pontes

1. Dismantling the thermal power plant.
2. Training of employees from the region.
3. Development of 1,300MW of wind power.
4. Support for industry: New projects with Sentury Tire, Ence and a PPA with Alcoa.
5. New logistics role at the Ferrol terminal.
6. Green hydrogen plant.
7. Wind logistics centre for all of Spain and a wind circularity operations centre.

About Endesa

Endesa is the largest electricity company in Spain and the second largest in Portugal. The company is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end generation, distribution and marketing business. Through Endesa X it also offers value-added services aimed at the electrification of energy usage in homes, companies, industries and Public Administrations. A new business line has also been created, Endesa X Way, fully dedicated to electric mobility. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribution and corporate social responsibility (CSR). The Endesa Foundation is also active in CSR. Our workforce numbers around 9,260 employees. Endesa is a division of Enel, Europe's largest electricity group.