This is my first chance to speak to you as the President of Greenalia. During my professional career, I have been able to participate in some of the most challenging business projects and to work with groups of highly-qualified people. Participating in the transformation of sectors such as retail, communications or banking has, undoubtedly, involved challenges of enormous magnitude. However, the present situation is no less challenging. I am participating in the energy transition and the decarbonization of the economy, which may well be the main challenges currently faced by society and the business world.
2021 has been a convulsive year, marked by the consequences of the pandemic and new global conflicts. Nevertheless, in the middle of this convulsive and uncertain context, we have been able to maintain our course and reinforce our operations. Now it is time to look toward the future, aiming at recuperation. And along this course, energy transition and digitalization will be the levers that will move this process, greener and more sustainable. And I am doing this as the President of a company like Greenalia, a company closely involved with the communities where we undertake our projects, supporting and collaborating with different organizations and administrations and participating in strategies to promote inclusion, diversity and equality for vulnerable groups.
I must not forget to mention Greenalia’s commitment to Galician industry, especially at this time of price tensions in the electricity market. In Greenalia, we believe that this resource, wind power, is an opportunity to ensure, in the medium term, the competitiveness of Galician industry via long-term agreements on energy sales like those we have already formed with several large-scale consumers of electrical power.
As you will see in this document, from a financial and sustainability perspective, the company has maintained its route map despite the impact of the successive waves. In a year marked by the corresponding restrictions and closures of activities, the resilience of our business model, based on the green economy, vertical integration and recurring income has been reflected in the continuity of all of our planned projects.
We brought forward our plans to operate in the USA, incorporating a new technology –storage– into our pipeline, and we started 4 new wind farms in Spain. With this first step towards internationalization, we diversified our risk by being on two continents and at the same time, we have acquired greater stability and security in the achievement of the objectives of our strategic plans.
Our strategy for contributing to the development of a more egalitarian society maintains the company’s unwavering commitment to the 17 Sustainable Development Goals (SDG) established in the United Nation’s Agenda 2030, helping to resolve the great challenges facing humanity. Therefore, our adhesion to the global compact is a pillar on which to seat our management of sustainable and harmonious growth from the triple ESG perspective (Environmental, Social and Governance), creating an organization that exists within a complex ecosystem and at the same time contributes to its regeneration.
This is the path we believe in, reaffirming our alliance with the environment and our respect for the planet. For this reason, we promote initiatives to reduce impacts on ecosystems, applying a circular bio-economy, reducing emissions and using clean energy in both our activities and in the projects we develop. We also have the satisfaction of having ratified our global objectives via the SBTi (Science-Based Target initiative), to reduce our direct emissions by 25% by 2030.
Convinced that the future depends on talent and people, we design and promote a diverse and inclusive work environment, guaranteeing that equality and equal opportunity are a reality of which we can be proud, avoiding any discrimination in our day to day life. Everyone in Greenalia contributes to its growth, and this is important to us, since it is the essence of the company’s progress.
The challenges before us also require the strengthening of our organizational structure. In this regard, the renovation of the Board of Directors, with my arrival as the President, and the incorporation into the board of our Director of Corporate Development and Sustainability has led to the integration of sustainability into the highest management levels in the company.
In addition, during this year, we have also advanced in the consolidation of our Compliance Program, thanks to the approval by our Board of Directors and the Shareholders Meeting of the Green Book -the book of company policies-. The ratification of the Code of Conduct and Corporate Good Practice and the launch of the Responsibility Channel have allowed us to advance in the consolidation of our program of regulatory compliance, another step forward in the implementation of the code of ethics that governs our business project.
With the full packet of measures and objectives established in these two documents, which are intrinsically linked, Greenalia has moved forward in our policies for good governance, just as we have movedforward in our pipeline.
As a company, we have managed to maintain the competitiveness of our lines of business by using synergies, seeking the growth of our model while attending to risk reduction. We have made a significant contribution with the process of energy transition, with an investment of 1,000M€ between 2019 and 2023 in projects for the generation of electricity from renewable sources. At the end of 2021,27% of the investment planned up to 2023 has been implemented.
As a company closely involved with the communities where we undertake our projects, we support and collaborate with different organizations in projects of interest, participating together in effective strategies to promote inclusion, diversity and equality for vulnerable groups and their access to sports activities.
As I said earlier, 2021 has been a year marked by the pandemic. Now it is time to look toward the future, aiming at recuperation.
And on this path, energy transition and digitalization are concepts that will shape this process, concepts that we in Greenalia have internalized in our vision because we believe that renewable energies and digital technologies must be the driving forces of a new economic model, greener and more sustainable. Our technological alliances with companies such as Microsoft have taught us this. We have been able to optimize processes, reduce our carbon footprint and become much more efficient in time management.
The bases are in place. We have many challenges in front of us. Europe wants to contribute to the containment of climate change by reducing its greenhouse gas emissions by 55% between now and 2030, to limit the temperature increase to less than 2ºC. In Greenalia, we are firmly committed to this objective, and we are sure that our participation and active role in this change towards a climaticallyneutral economy makes us a point of reference in thechange of the energy model.
With green, positive energy, we are confident that in 2022, we will enjoy a year in which we shall continue to grow, to generate wealth and to contribute to a more sustainable planet.
As in previous years, I would like to dedicate a few lines to complement the financial documentation that we have provided to the market and to our stakeholders. Looking back on the last year,despite the exceptional circumstances we are living through due to the Russian conflict, the post-pandemic consequences, the inflationary tendencies and the tensions in the supply chain and in transport, as far as Greenalia’s activities are concerned, we can find satisfaction in having closed yet another year, 2021, achieving our strategic objectives.
During 2020 we lived through an unprecedented world-wide situation as a result of the health emergency derived from Covid-19. During 2021, we have suffered many consequences derived from this situation. Nevertheless, in the middle of this convulsive and uncertain context, we have been able to maintain our course and reinforce our operations. We have continued to start up our projects in renewables, and we have also achieved other, strategic, objectives such as opening up the American market, milestones that have beenattained in highly-professional ways. These results demonstrate the resilience of our business model, since, despite the restrictions we have suffered, we have been able to consolidate the growth of our business during this period.
This has been an especially relevant year for the company. The start of operations of 4 of our projects, in addition to those that were already operating, has allowed us to successfully complete the plans established in previous years. We have exceeded our objectives set forth in our COVID RESILIENCE Plan. At the same time, we have achieved the figures promised in the Business Plan presented when we went public in 2017. At the moment, with 6 projects in operation (with an installed power of 125MW), with another 1,000MW under construction, we have become a relevant player in the sector, especially for our multi-technological character and the important resource of our pipeline. In financial year 2021, these projects have led to an EBITDA of almost 40M€ and a net profit of over 10M€. The forecasts for 2022 are even better. Also, I would like to recall the recurrent and predictable nature of our business model, “Develop&Own”, which means that, by retaining 100% of the ownership of our projects, we have guaranteed income for the next 25 years.
We brought forward our plans to operate in the USA, and started up 4 new wind farms in Spain.
Last July, we enjoyed an historic event in the group’s history: Theacquisition of our first international project. Our American subsidiary,Greenalia Solar Power US INC, acquired an American renewable energy generation company with a total capacity of 695MWp of photovoltaic power in RTB (Ready to Build) conditions, thus accelerating the implantation of our business in the USA. This acquisition also contemplates the installation of 170MW of battery storage. With this operation, the company has assured the achievements of the objectives established in its strategic plan, and increased its technological diversity to 5 technologies (Onshore Wind, Offshore Wind, Photovoltaic, Storage and Biomass) in two currencies, the Euro (€) and the dollar (USD). The commitment of the US administration to renewable energy has opened a very attractive panorama in this sector, and we must make the most of it. Apart from this acquisition, the company has submitted new projects there, and continues to study the acquisition of other companies in this sector, in order to advance rapidly in what is now a growth industry in the USA.
I am both satisfied and proud of the positive impact that our company is generating in the local economy and in the transition process towards a decarbonized economy.
On a corporate level, we should note the award, in January, of 135MW of terrestrial wind power in the tenders issued by MITECO (Ministry of Ecological Transition). This figure represents 13.5% of the power allotted by the Ministry to this technology.
Meanwhile, in December, we registered a Program of Green Credits with a value of 100 million Euros in the MARF (Alternative Fixed Income Market) The program has been evaluated by Sustainalytics, aleading agency in sustainability analysis, that has considered that thecompany’s projects can contribute to the process of energy transition in Spain. With this initiative, the second program of Green Credits in the Spanish market, Greenalia has consolidated its position as a pioneering company in the emission of green finance, since all credits issued up till now, the last one for 55 million, issued in December 2020, have been qualified as “green”, with the maximum Standard&Poor’s rating in the sustainability sector. This operation is in addition to the capital increase of 15 million Euros in November (via an accelerated placement procedure in which 4.4% of the company’s capital was subscribed with no discount on the previous day’s price); this demonstrates confidence in the company on the part of investors and the capital markets.
I must also mention the signing, in December, of a pre-contract agreement to supply renewable energy to the Alcoa aluminium plant in San Cibrao (Lugo) for 10 years. This energy will be supplied from wind farms that are under development in the Galician Autonomous Region, mainly in the province of Lugo, where Alcoa’s plant is located. This pre-contract is in line with our commitment to Galician industry, particularly during these moments of price tensions in the electrical market. In Greenalia, we believe that wind power constitutes an opportunity to ensure the medium-term competitiveness of Galician industry via a PPA (Power Purchase Agreement) of this type.
I would also like to thank our Board of Directors for their hard workand dedication. The challenges that we are facing also demand thereinforcement of the organizational structure and of management.The renovation of the Board of Directors is the key to successfullyfacing future growth processes of the company. This includes theappointment as president of Jose María Castellano Rios, with a longbusiness trajectory that we are all aware of, and the appointments ofBeatriz Mato as Executive Director and Pablo Castellano Vazquez asProprietary Director, who reinforce the capacity and the experienceof our management. This tendency also implies the addition of theDirector for Sustainability, represented by Beatriz Mato; as a result, the integration of sustainability into management extends to the top levels of the company.
On the other hand, and although it will be a reference to 2022, I would not wish to omit a mention of our current projects: The EOLO CBT project, with a power of 110MW, is now under construction and will soon export energy. To this, we must add the MISAE II project (Texas, USA), with a power of 695MW and 170MW of battery storage, also in the initial phase of construction.
In previous communications, I informed you that we are working on a new strategic plan. We will present this plan during the second half of this year.
At an organizational level, I am especially proud of the incorporationof new senior talent that will undoubtedly be a fundamental part ofthis new plan. To name but a few: Alberto Expósito, as Development Director of International Business Development, Alberto Ares, as Director of Engineering and Construction, and Pablo Barco, as Director of the Curtis-Teixeiro Biomass Plant, among others. Nor would I wish to forget the approval by the Board of Directors, last December, of a Stock Options Plan aimed at key management personnel. The aim of this plan is to achieve the maximum degree of motivation and loyalty of the personnel involved, and to provide them with an incentive to promote the best results for the company, aligning the interests of these persons with the medium-term benefits of shareholders. The Plan will continue until January 1, 2026, a date that will be used as a point of reference to determine whether the objectives for the use of the options have been achieved. The Plan will be submitted for approval in the next General Shareholders’ Meeting.
As part of our process of improvement and internal professionalisation, this year we have assigned more resources to the areas of Digitalization, Sustainability and Business Development, among others. Proof of this is the signing of the technological alliance with Microsoft, as is also our recognition by SAP, with a prize in the SAP Quality Awards 2021, in the category of Digital Pioneer.
Neither would I wish to leave out our commitment to the environment: this is a fundamental pillar of our strategy and business model. In this regard, I am happy to announce that, in the field of ESG, we present our Sustainability Report for 2021 together with our consolidated annual accounts. In this way, we formally communicate our commitment to contribute to the development of a more egalitarian society, maintaining the company’s commitment to the 17 Sustainable Development Goals (SDG) established in the United Nations Agenda 2030. Therefore, our adhesion to the global compact is a pillar on which to seat our management of sustainable and harmonious growth from the triple ESG perspective (Environmental, Social and Governance), creating an organization that exists within a complex ecosystem and at the same time contributes to its regeneration. As a company closely involved with the communities where we undertake our projects, we support and collaborate with different organizations in projects of interest, participating together in effective strategies to promote inclusion, diversity and equality for vulnerable groups and their access to sports activities.
As I said at the beginning of this letter, 2021 has been a most convulsive year, marked by the consequences of the pandemic and new global conflicts. So, I want to thank the shareholders, institutions, financial entities and all other collaborators that have offered their support to Greenalia during this last year. Now it is time to look toward the future, aiming at recuperation. And along this course, energy transition and digitalization will be the levers that will move this process, greener and more sustainable. We are proud of and, above all, thankful for,the results that we are presenting today, because we know that this encouraging year has been made possible by the efforts of all members of our team, our assessors and the confidence of manysuppliers and clients.
Before I finish, and as every year, I invite you to visit our website (www.greenalia.es) where we not only explain the nature of our business and present our team, but also present news, the evolution of our activities, and relevant events. During 2021, we have also developed our GreenMap, with full, detailed information on each of our projects. You can access it through the following link.
Best wishes to all of you.
Start up of 4 wind farms
Alto da Croa II (10.4MW)
Monte Tourado (10.4MW)
Alto da Croa I (7.3MW)
Obtaining for the Biomass Plant (50MW)
€271.9M invested since 2019. In 2021 €42M.
New appointments of senior talent
Establishment of a long-term incentive program for key directors, including ESG compliance objectives.
In our Compliance program and publication of the GREEN BOOK (ESG policy book)
Reorganization of the Board and incorporation of the sustainability director
- Battery storage
- Solar photovoltaic
Pre-agreements with electro-intensive industries to supply green energy via PPAs (1GWh)
Green promissory notes program
Issued 100M€ green promissory notes program (MARF)
Diversification in 5 technologies and 2 currencies (euro & dollar)
Reduction of direct emissions in tCO2eq/K€ (EBITDA) vs. 2020
Energy use from renewable sources
Increase in hours of environmental monitoring vs. 2020
Increase in personnel vs. 2020
Increase in hours of training vs. 2020
Direct and indirect jobs
Local Economic Impact
Women in the Steering Committee
EBITDA vs. 2020
Income vs. 2020
Alto da Croa I Wind Farm (7.3MW)
Floating Offshore Wind Farm Project
Greenalia USA Solar Power Project
Curtis-Teixeiro Biomass Plant (50MW)
Storage project in Texas (USA)
Curtis-Teixeiro Biomass Plant
Miñon Wind Farm
Ourol Wind Farm
Alto da Croa Wind Farm
Monte Tourado Wind Farm
Alto da Croa II Wind Farm
During the last few years, we have consolidated our Develop&Own business model by starting up the largest forest biomass electrical generation plant in southern Europe and five wind farms in the area of Spain with the most wind power resources. This has led to the strengthening of the group’s vertical integration.
In Greenalia, as an independent power producer, we generate energy by participating in the following stages of the process:
a - promotion and development
Search for viable projects
Achievement of all milestones up to Ready to build
Structuring of green, efficient and non-recourse financing
Supervision services during the construction of the projects
Sale of energy in its IPP modality through:
Sale to the market
Participation in renewable energy auctions
Signing of PPA (Power Purchase Agreement)
c — Services
Operation and maintenance+
O&M supervision service
Asset management activities
0MWIn 5 technologies
General meeting of shareholders
Capital structure of the company
81.21% Smartia SLU
13.30% Flee Float Minorities
5.19% Alazady España SL
0.3% Treasury stock
Board of directors
José María Castellano
Manuel García Pardo
José María Castellano
Represented by D. Antonio Couceiro, President
Appointments and Remuneration Committee
José María Castellano
Represented by D. Antonio Couceiro, President
The application of good financial practices is an extension of our commitment to sustainability. It means that strict compliance with fiscal responsibilities is one of our main principles, and is fully in line with our values and our philosophy of creating value and being a positive force in social transformation in the regions where we operate.
EBITDA In M€
turnover In M€
2021 has been a successful year for Greenalia, with a 3.5-times increase in our EBITDA and with our shares reaching an all-time maximum price during the year (22.5€)
Recurring income, predictable and stable in the long term.
High profitability, focussed on the generation of EBITDA and value for shareholders.
Efficient financial structures, resourcefree.
Materiality analysis is a most important tool with greatadded value. It allows us to identify the items that are most important to our groups of interest and so advance in the creation of value in governance, social and environmental terms, to ensure that the present and future needs of our groups of interest are satisfied.
Surroundings of Miñón Wind Farm (24MW)
Environmental Advances 2021
Progressive reduction of our carbon footprint
Reduction of almost 60% on our direct emissions per functional EBITDA unit, expressed in thousands of EUR (tCO2eq/K€(EBITDA))
Carbon neutral company
We are entering a phase of evaluation of other alternatives better aligned with the aims for reducing emissions approved during this year.
100% FSC®/PEFC wood in 2023
100% of the wood we purchase comes from controlled forests and 88% comes from forests with FSC®/PEFC-certified management
Maximum attention to the protection of biodiversity
1,704 hours of environmental monitoring
Biomass 100% from local forest residues
The average distance, weighted by weight, from the source to the biomass plant was 72 Km.
Zero single-use plastic material
We continue to avoid using single-use plastic in offices
Recycling in offices and responsible use of paper
We recycle the waste we generate and use paper minimally and efficiently
1,000 MW of installed power with an investment of 1,000 M€ in energy transition by 2023
271.9 M€ invested in energy transition (27% of the goal for 2023)
Protection and enhancement of archaeological elements
209 hours of archaeological monitoring by experts during works
governance Advances 2021
Communication of results in webcasts
H1 2021 results presentation webcast with 155 attendees for the live version and 193 for the deferred version. Presentation of FY2020 results with 138 live attendees and 170 deferred.
Quarterly publication of articles on sustainability (ESG)
At least one article related to sustainability (ESG) has been published every quarter.
Audited by FSC®, PEFC, Madera Justa and SURE certification. Evaluation by Sustainalytics of the sustainability of our program of green credits.
Greenalia’s Board of Directors decided, in 2021, to implant a Program of Regulatory Compliance, to create a common framework of integrity in the course of our activities.
The centrepiece of this Program is the Code of Conduct and Corporate Good Practice, which is aligned with the principles of the Global Compact, to which we are signatories, and which can be found in our corporate website.
Our ethical principles and activity guidelines are expounded in our Code of Conduct. This code is accepted by every person who becomes a part of our organization, and establishes the basic principles and commitments that we expect and that must be demanded of the companies in Greenalia and of all personnel, directors and administrative organs.Therefore, it constitutes a common framework of integrity for everyone in their professional activities and in their relationships with the groups of interest.
To ensure compliance with applicable legislation and with the Code of Conduct, we continue to work on the reinforcement of our internal procedures and policies, accepting the guidelines on personal and professional behaviour that our Board of Directors deems necessary to generate added value for our shareholders, for ourselves and for the companies in the group that handle our different activities. All of this can be seen in the approval of the Green Book, the book of company policies, ratified by the Board of Directors during this year.
Since September 2021, we have a Committee of Regulatory Compliance, charged with preventing, detecting, mitigating and correcting business behaviour not aligned with ethics and legality.
This committee is responsible for ensuring the correct application of our Code of Conduct and for resolving consultations received via the complaints channel, in addition to guaranteeing access to and training in the Code for all of our personnel.
In addition, in order to make our supply chain aware of the behavior guidelines that should govern its relations with Greenalia, during this year we have approved the Ethical Charter for Supply Companies, which has been elaborated on the basis of our Code of Conduct.
Risk management in Greenalia is a process directed by the Board of Directors and the Steering Committee, with the aim of predictably guaranteeing the achievement of the company’s objectives with alow-to-medium risk profile. This offers our groups of interest a sufficient guarantee of protection of the value generated.
Our commitment to the environment and the preservation of the biodiversity of ecosystems, countrysides and species in the territories in which we are active is more than a commitment, it is a necessary condition for global sustainability.
Hours of work
hours of environmental monitoring of the construction works, start-up and operation of our wind farms and evacuation lines
Plan and program to protect the population of the species Centaurea ultreiae.
In 2020, we signed the Plan and program to protect the population of the species Centaurea ultreiae (Silva Panda herb) in the area around Monte Castelo, with the intention of minimizing the possible effects on undetected specimens of this species and achieve compatibility between the development of our projects and the conservation of this protected species.
To elaborate and develop this program, Greenalia has provided funds with a value of 200,000 Euros that are distributed according to a collaboration agreement with the Lourizan Centre for Forest Research, a department of the Axencia Galega de Calidade Alimentaria (AGACAL) and the Higher Polytechnic School of Engineering (EPSE)-Campus Terra de Lugo (USC).
Under the aegis of this agreement, which is valid until 2024, the research team has carried out the first phase of this program during 2021, aimed at diagnosing the situation of this plant via extensive prospective research in the municipal districts of Coristanco, Carballo and Santa Comba (A Coruña), where this species is found.
Protecting the Macaronesian fern Dryopteris Guanchica in the Miñon and Alto da Croa II Wind Farms
In response to the identification, in the area around the Miñon Wind Farm substation, of a rare species of Macaronesian fern (Dryopteris Guanchica), classified as vulnerable in the Galician Catalogue of Threatened Species, in 2019 we launched the first phase of measures for its protection and recuperation, in collaboration with the University of Santiago de Compostela (USC), via the Laboratory of Environmental Technology and the Guisamo Agroforestry Training and Experimentation Centre.
As a first step, individuals of this species were located and identified, and were then transplanted to a nearby location suitable for their development, achieving a 100% survival rate of the transplanted plants.
The aim of the second phase, which commenced in 2020 and has continued during this year, is to ensure the conservation of this species and to establish an additional population near to the substation, using spores from the existing plants and dedicating a shady area for their reproduction. In addition, work commenced during 2021 to generate new seedlings, a process that will require 2 years in order to produce transplantable examples.
To put this commitment to biodiversity into practice, we integrate conservation of natural diversity into our Sustainability Plan (ESG),and so apply a preventive attitude in order to minimize the impacts of our infrastructures on biodiversity, taking into account its complete life-cycle. To this end, environmental directives are prepared for each type of infrastructure project we may plan.
Moreover, in our Environmental Policy, included in our Green Book, which is available on the corporate web site, we include a formal commitment to the protection of biodiversity and a specific proposal to avoid and mitigate any impact, under the responsibility of the Board of Directors, demonstrating the importance that we give, internally, to this commitment.
With this in mind, amongst other actions, we monitor flora and fauna, especially in the case of protected or vulnerable species. We also apply silvicultural treatments that minimize the risk of forest fires, and restore autochthonous species.
Our business model is sustainable, with a strategic growth plan based exclusively on renewable energy projects that contribute directly to the fight against climate change.
Greenalia's decarbonization goals include reducing polluting emissions by 25% by 2030 in line with the SBTi (Science-Based Targets Initiative).
Global energy consumption MWH
The energy used mainly involves the consumption of diesel fuel in the company’s vehicles and in the bundling machines used in the field to bundle the forest biomass used in the biomass plant.
GHG emissions tCO2eq
scope 1 direct emissions
These are GHG emissions associated with sources that are under our direct control.
scope 2 indirect emissions
These are associated with the generation of the electricity that we purchase.
An additional scope that includes indirect emissions associated with the production chain of goods and services produced outside our organization.
Caring for our team members is a priority that has allowed us to stride forward towards the achievement of our growth targets.
The team in figures
Average age of personnel: 36 years
By gender - Renewable business
By employment contract
29% < 30
30 - 50
10% > 50
4% Dept. Head
8% Mid level mngr
15% Technician II
Average age of personnel: 37 years
By gender - Renewable business
By employment contract
24% < 30
30 - 50
10% > 50
We include the professional category of scholarships in this information.
We get directly involved with the communities in which we operate, making significant contributions to society, mainly as a consequence of all the activities necessary to supply a product as essential as energy.
+ 0 %
of total direct economic impact is local
Direct economic impact in the region near the projects
Wind turbine in Ourol Wind Farm (22.5MW)