A Chilean ministerial group has given approval to Endesa's Punta Alcalde 740 MW coal-fired project in Huasco. In June 2012, the environmental-impact study (EIA) had been rejected by a regional environmental authority, pushing Endesa to appeal to the government over the decision.
Punta Alcalde will have to adopt the highest standards in technology, efficiency, and environmental commitment, taking into consideration international parameters on emissions and operation. An agreement has been reached with the Pacific Steel Company (CAP), consisting in installing an Electrostatic Precipitator in a smokestack of the Pellet Plant which CMP has in the town of Huasco. This will ensure total emission reduction equivalent to the Punta Alcalde project and improve air quality. In addition, Endesa Chile promised to close the operation of the diesel oil turbines (Huasco Plant, which has a capacity of 64 MW) once the Punta Alcalde project enters into operation. At the same time, the company assumed the voluntary commitment to establish a maximum level of PM emissions of 27 mg/Nm3, which is 10% less than required by the current Emissions Standard. Endesa will also implement domes to cover two fields to be used for the stockpiling of Punta Alcalde coal. These environmental measures are expected to cost about US$40m. The total cost of the project is estimated at US$1.4bn.