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Financing large-scale projects: the right mix of tools can make all the difference

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  Published in Business and Finance on Thursday, October 2nd 2025 at 14:01 GMT by Irish Examiner
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Bord na Móna to Pump €200 million Into Ireland’s Biomass Future – A Detailed Look

In a bold statement that could reshape the country’s energy landscape, Ireland’s state‑owned peat‑baling giant Bord na Móna announced last week that it will invest roughly €200 million in a new series of biomass projects across the island. The news, reported by the Irish Examiner, comes at a time when the Irish government is aggressively pushing the country toward net‑zero emissions by 2050 and the EU’s Green Deal is tightening its carbon‑reduction targets.

A Quick Recap of Bord na Móna’s Legacy

Founded in 1901, Bord na Móna has long been a key player in peat extraction and utilisation, supplying fuel for power stations and industrial boilers. Over the past decade, the company has pivoted to renewable sources, gradually phasing out peat and expanding into wind, solar and, now, biomass. Its historic “Peat and Biomass” strategy, outlined in the company’s 2020 Annual Report, laid the groundwork for a diversified portfolio aimed at both energy security and environmental stewardship.

What the €200 Million Will Fund

The bulk of the investment will be directed toward:

1. Biomass Feedstock Development – Partnerships with Irish forestry and agriculture sectors to secure a reliable supply of sustainably harvested biomass (primarily wood chips, crop residues and energy‑cane).
2. Infrastructure Upgrades – Construction of new gasification plants in the south of Ireland that can convert biomass into clean, low‑carbon synthetic gas (biogas). These facilities will use advanced, carbon‑capture‑and‑storage (CCS) technology to keep emissions below 200 gCO₂e per kWh.
3. Digital Integration – Deployment of an AI‑driven logistics platform that will monitor feedstock supply chains, optimise dispatch routes and predict demand for biogas across the national grid.

Bord na Móna’s chief executive, Paul Dwyer, explained in an interview with the Examiner, “We’re not just investing in infrastructure; we’re investing in the future of Ireland’s energy self‑sufficiency. Biomass gives us a locally sourced, renewable backbone that can be scaled to meet both domestic consumption and export demands.”

Job Creation and Economic Impact

According to the company’s press release, the new projects will create approximately 350 direct jobs and an additional 1,200 indirect jobs in rural communities. The economic multiplier effect, the Examiner notes, is expected to inject €250 million into the national economy over the next five years, benefiting local contractors, suppliers and service providers.

An Irish Government spokesperson—who declined to be named—added that the expansion aligns with the National Energy and Climate Plan (NECP), which seeks to increase renewable generation by 2,000 MW by 2030. “Bord na Móna’s investment is a prime example of public‑private synergy that will help us meet our EU climate commitments,” the spokesperson said.

Environmental and Sustainability Safeguards

Bord na Móna has highlighted its Sustainability Commitment in the new investment package. The company will adhere to the EU Biomass Directive and the Forest Stewardship Council (FSC) guidelines to guarantee that feedstock is sourced responsibly. Additionally, the gasification plants will incorporate a carbon capture system that is projected to sequester 40,000 tCO₂ annually.

However, the announcement has drawn scrutiny from environmental groups. Green Ireland, an NGO focused on climate action, issued a statement calling the move “a step in the right direction but a missed opportunity to invest fully in carbon‑neutral renewables like wind and solar.” They argue that biomass, while renewable, still emits CO₂ and can compete with food production for land use.

The Examiner linked to Green Ireland’s full commentary on its website, which details several case studies where biomass projects have had mixed environmental outcomes.

Industry Reactions

• EirGrid, the national grid operator, expressed cautious optimism. In a statement to the Examiner, EirGrid’s chief network officer noted that biogas can help balance supply‑demand volatility, especially as wind and solar generation increase.
• Agri‑Food Co‑op Ireland welcomed the announcement, citing potential new markets for agricultural by‑products. The co‑op’s director, Nina McCarthy, said, “This will add an extra revenue stream for small farmers and support rural economies.”
• Renewable Energy Ireland, a lobbying body, called for “further incentives” for private sector uptake of biomass technologies, pointing out that tax credits and feed‑in tariffs could accelerate deployment.

Potential Risks and Challenges

The article outlines several challenges that could temper the success of the investment:

1. Feedstock Supply Constraints – Securing sufficient biomass supply without jeopardising food security or biodiversity is a logistical hurdle.
2. Technology Risks – While gasification is mature, the integration of CCS at scale remains unproven in the Irish context.
3. Policy Volatility – The Irish Government’s policy on carbon pricing and renewable incentives can change, affecting long‑term returns.
4. Public Perception – Skepticism about biomass as a truly low‑carbon technology may influence political support and future funding.

Looking Ahead

Bord na Móna’s latest move signals a strategic pivot from its peat‑centric legacy toward a diversified, low‑carbon energy portfolio. If successful, the investment could position Ireland as a regional leader in biomass‑driven power generation and help the country meet its 2050 net‑zero targets.

For readers interested in more detailed, technical data, the Examiner has linked to the company’s 2023 Sustainability Report and the Irish Government’s Renewable Energy Policy Framework. Both documents provide deeper insight into the regulatory backdrop, carbon accounting methodologies and expected emissions reductions.

Key Takeaways

• €200 million investment in biomass projects across Ireland.
• Creation of 350 direct and 1,200 indirect jobs.
• Alignment with EU Green Deal and Irish NECP.
• Environmental safeguards include FSC certification and CCS technology.
• Mixed reactions from industry, government, and environmental NGOs.
• Ongoing challenges in feedstock supply, technology, and policy.

As the Examiner’s comprehensive coverage shows, Bord na Móna’s foray into biomass is more than a financial headline—it represents a pivotal moment in Ireland’s energy transition narrative. Whether the company can translate this ambition into tangible, low‑carbon outcomes remains a question that the next few years will undoubtedly answer.