Hunosa achieves its survival by winning the auction for the biomass plant

by time news

Hunosa has a future. The Asturian public company has been one of the winning companies in the third renewables auction called by the Ministry for Ecological Transition. It has obtained 50 megawatts (MW) of biomass, which represents the definitive boost for the transformation project of the La Pereda coal-fired power plant, in Mieres, which will stop burning ore and waste dumps and will start consuming native forest residues . This energy transition project is also a survival insurance for the state mining company after the closure of coal operations and, according to Hunosa sources, it will generate 200 new jobs in companies dedicated to forest management and biomass treatment .

Yesterday, the Ministry for the Ecological Transition held the third renewable power auction, which gives access to long-term economic compensation –with low market exposure– for the energy generated in the plants that are awarded the contract. On this occasion, 520 MW of distributed solar thermal, biomass and photovoltaic were auctioned. For biomass there was a quota of 140 MW and the companies Acciona, Reolum and Hunosa have won with prices of around 100 euros per megawatt hour as a result of the bid. The remuneration will be maintained for 20 years. Acciona plans to develop its biomass plant in Extremadura and the other two companies in coal mining regions. Reolum in La Robla, in León, and Hunosa in Mieres.

The objectives

Sources from Hunosa confirmed that the state company obtained 50 MW in the renewable energy auction for its La Pereda transformation project, with which it seeks to “consolidate the viability of the company, contribute to a clean and sustainable economy, and structure its territory of benchmark, with a clear commitment to decarbonisation”. According to Hunosa, the remuneration system obtained in the renewable energy auction guarantees the continuity of the La Pereda plant for at least 20 years, guarantees the maintenance of the 73 jobs at the facility itself, and will generate “at least 200 new jobs” in companies dedicated to forest management and biomass treatment and will help improve the management of the mountains of Asturias. “It will also allow new projects to capture CO2 and heat networks around the installation to be undertaken,” company sources added.

The transformation plan for La Pereda was approved in December 2020 by the Hunosa board of directors and, since then, the project has passed all the environmental procedures. Last May, the Principality’s Environmental Affairs Commission (Cama) issued the mandatory favorable environmental impact report and the Regional Administration, Environment and Climate Change Department formulated in June the environmental impact statement that determines “the viability, to the environmental effects, of carrying out the transformation project of the La Pereda thermal power plant”.

The current coal-fired power generation plant, with 50 MW of power, was launched in 1994 as part of Hunosa’s diversification plans. The project for its transformation is valued at 41 million euros and the planned technical modifications include the adaptation of the circulating fluidized bed boiler, which will be able to work with 100% forest biomass. The conversion of thermal into a renewable energy plant is included in the business plan signed by Hunosa with the SOMA-UGT and CC OO unions.

Greenalia ruled out submitting the ZALIA project to bidding, but will continue to process it

Greenalia chose not to attend yesterday’s auction of the special renewable energy regime with its project for a 50-megawatt biomass power plant for ZALIA, in Gijón, because “we do not consider the conditions of the auction viable to make a project profitable in the current situation”, they explained from the Galician company, who point out that this does not mean that the project for Zalia has been ruled out, for which it is carrying out the environmental processing before the Principality of Asturias. Other sources explained that Greenalia could hardly compete in the auction taking into account the amortization costs of a plant to be built from scratch, while the Hunosa plant in La Pereda only requires a reform with an investment of approximately half and the Reolum plant in La Robla it already has an access point to the electricity grid. Greenalia could present its project another year, although it would have to acquire the wood far away since the one in Asturias is insufficient to meet its project and that of Hunosa, which is added to the consumption of the Ence plant in Navia.

The successful bidders

  • It’s cool. The state company has obtained 50 MW in the renewable energy auction for its plan to transform the La Pereda coal-fired power plant.
  • Reolum. This Madrid-based renewables company also achieved power for a plant in La Robla (León).
  • drive. She is the third winner of the auction. Her project is in Extremadura

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