Work has been suspended on the construction of a new biomass power station in Killala, north Mayo, due to a funding shortage.

The plant is intended to be Ireland's largest independent biomass power plant, fueled by untreated and uncontaminated clean wood and willow (virgin biomass) with the power to generate enough electricity for some 68,000 homes.

Taoiseach Enda Kenny launched the project in June 2015 and the plant was due to be up and running in 2017.

Statement

In a statement issued to the Irish Farmers Journal this week, Mayo Renewable Power (MRP), the company behind the plant, said it has issued a suspension notice to its main contractor, John Sisk & Son, due to an inability to conclude the financing.

The company said its American backer, Weichert Enterprise, has already spent €90m on the project, and that this was beyond the equity originally contemplated.

"Mayo Renewable Power hopes to use the suspension period to review its options to be able to complete the project," the statement concluded.

Hopes for farmers

As well as creating 350 new jobs during the construction phase and 30 full-time jobs once the project was operational, it was envisaged the plant could give a diversification option for thousands of local farmers.

Speaking to the Irish Farmers Journal after the project was launched last year, chairman of the company, Gerald Crotty, said: “We are anxious to buy biomass from farmers in the area.”

Crotty added that the majority of the biomass for the plant would be imported from the USA initially but added that the group would like to grow local supply over time. Renewable energy experts said that if the 380,000t required annually for the plant came solely from locally grown willow, approximately 17,000ha could be required.

Reaction

IFA's Mayo chairman, Martin Gilvarry, said the news had come as a shock.

"It came as a shock all of us in the area," he said. "We're really hoping the plant can get the finance it needs to get back up and running."

He also said it is a disappointment for local farmers who are engaged in the thinnings of forestry and were hoping to supply the plant.

"It would have created good employment in the area for farmers and non-farmers, but with a lot of the plant already built I imagine they will contine with it at some point," he continued.

Gilvarry said that himself and James Murphy, IFA renewables chair, were due to have a meeting with representatives from MRP on Monday, 1 August about the options for local farmers but added that the meeting is unlikely to go ahead now.

Construction so far

According to MRP's most recent progress report in May 2016, construction of the plant is well underway, with most of the electrical infrastructure in place, building work almost complete and the main generator on site.

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