The orujeras do not start even though the Iberian exception to cogeneration is opened and they warn of the collapse of the olive oil industry

The national association of pomace oil companies, ANEO, ensures that the companies in the sector currently stopped due to gas prices “will not be able to start because they do not cover their production costs” nor with the announcement made by the President of the Government, Pedro Sánchez , to open the Iberian exception to cogeneration. “Much to our regret, it does not represent a solution for the olive oil sector and in particular for olive oil mills with cogeneration,” they say.

ANEO explains in a statement that “the calculation of the remuneration carried out through the gas ‘cap’ mechanism is designed considering the characteristics of the combined cycles, but not those of the cogenerations of the orujero sector, with which they do not will be able to start by not covering their production costs”.

The problem, recalls the association, affects plants that value 40% of the total wet fatty pomace produced in Spain, an average of 2.8 million tons per year, and that their production plants have continued to stop since June 15, 2022, at which time the gas capping mechanism came into force.

Remuneration for the operation

The sector proposes to the Government that “the solution that we consider to be the most fair and balanced which we proposed in the allegations presented to the Proposal for an Order for remuneration for the operation for the second semester of 2022. This solution consists of the monthly calculation of the remuneration for the operation based on the real prices of gas, CO2 and electricity pool using the same formulas that have always been used in accordance with current regulations Today the remuneration is calculated for periods of 6 months which is not valid due to the current situation of high volatility in the energy markets”.

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The allegations have been made jointly between ANEO and Cooperativas Agroalimentarias, and have the support of the rest of the olive sector: Anierac, Asoliva, Almazaras Federadas de España and Infaoliva.

urgent meeting

The sector requests an urgent meeting with the corresponding ministries. “The problem today is of great magnitude. When the pomace industries with cogeneration are stopped, they are not processing the pomace from the previous campaign and when the new campaign begins, already in the making, they need to have their storage ponds emptied, since otherwise there will be a collapse of the olive oil producing sector”.

The 14 extractors that are now stopped are the largest in Spain. They process almost 3 of the 7 million tons of national alpeorujo per campaign. They have an installed capacity of 207 MW in cogeneration. If the turbines start, they would produce electricity and heat at a loss. If they are not uprooted, they leave tons of unprocessed alpeorujo in their rafts. When the next campaign arrives, if the rafts are completely filled, the circular economy of the olive tree could collapse, which would force the mills and olive pits to stop.

There is unanimity around this problem. “The stoppage of the pomace with cogeneration just a month before the start of the new 2022/2023 olive season, under whose umbrella 40% of the moist fatty pomace (some 2.8 million tons) is processed, is a very serious problem and This could mean the loss of jobs for almost 1,000 people directly and almost 3,000 indirectly, since cogeneration mills generate the most jobs, for longer periods of time throughout the year and the most qualified. This is without taking into account the innumerable wages that will be lost in the olive harvest, since the mills will be forced to stop grinding, since they cannot remove the moist fatty pomace from their facilities,” say the companies of the sector in a letter sent to the minister signed by ANEO, Asoliva, Cooperatives, Anierac, Infaoliva, Almazaras Federadas de España and the UGT union.

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