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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Construction work has ground to halt at Ireland's largest biomass power plant in County Mayo due to a lack of funding.
Developer Mayo Renewable Power Limited (MRP) (Mayo, Ireland) announced that it has suspended its main contractor after failing to secure additional finance for the project. The 42.5-megawatt (MW) power plant and biomass fuel processing facility, which is being built on the site of a former Asahi chemical plant in Killala, was estimated to cost 180 million euros ($198 million). The developer had originally secured final financing last June with an American investment company based in New Jersey, Weichert Enterprise, along with a number of banks. For additional information, see June 16, 2015, article -- Ireland's Largest Biomass Project Good to Go.
However, MRP stated that the American backers of the project had already spent 90 million ($99 million) on the project, "which was beyond the equity originally contemplated and had committed to further spending". The company said that it will use the suspension period to review its options to finish the project. Up to 350 jobs were to be created during construction, while the plant will employ 30 people full-time when it is commissioned, which was originally slated for mid-2017.
The plant had already qualified for Ireland's Renewable Energy Feed-In Tariff (REFIT) programme, which guaranteed MRP a minimum price for the electricity produced through December 31, 2030. The plant is designed to burn virgin biomass such as willow, spruce, miscanthus and mesquite, while the "waste heat" from the station will be used in an adjoining fuel storage and processing plant to refine the biomass for commercial use. It will be able to power up to 68,000 homes.
Last year, Ireland's Taoiseach, Enda Kenny, welcomed the financial close of the plant: "This investment is a vote of confidence in the Irish economy and is part of the recovery that is beginning to spread to every region of Ireland. It will be the largest biomass power station to have been built in this country to date and will contribute to reducing our greenhouse emissions."
In response to the suspension of works, opposition politicians have called on the government to intervene.
"This news is a major blow to over 150 construction workers and their families as well as to the north Mayo region," said Fianna Fáil and Mayo TD Dara Calleary, speaking to The Journal. "This is an extremely important project which has brought employment back to the county. This project cannot be stalled. I am urging the Taoiseach to intervene and lead a concerted effort to work with the company to resolve the current issues."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Developer Mayo Renewable Power Limited (MRP) (Mayo, Ireland) announced that it has suspended its main contractor after failing to secure additional finance for the project. The 42.5-megawatt (MW) power plant and biomass fuel processing facility, which is being built on the site of a former Asahi chemical plant in Killala, was estimated to cost 180 million euros ($198 million). The developer had originally secured final financing last June with an American investment company based in New Jersey, Weichert Enterprise, along with a number of banks. For additional information, see June 16, 2015, article -- Ireland's Largest Biomass Project Good to Go.
However, MRP stated that the American backers of the project had already spent 90 million ($99 million) on the project, "which was beyond the equity originally contemplated and had committed to further spending". The company said that it will use the suspension period to review its options to finish the project. Up to 350 jobs were to be created during construction, while the plant will employ 30 people full-time when it is commissioned, which was originally slated for mid-2017.
The plant had already qualified for Ireland's Renewable Energy Feed-In Tariff (REFIT) programme, which guaranteed MRP a minimum price for the electricity produced through December 31, 2030. The plant is designed to burn virgin biomass such as willow, spruce, miscanthus and mesquite, while the "waste heat" from the station will be used in an adjoining fuel storage and processing plant to refine the biomass for commercial use. It will be able to power up to 68,000 homes.
Last year, Ireland's Taoiseach, Enda Kenny, welcomed the financial close of the plant: "This investment is a vote of confidence in the Irish economy and is part of the recovery that is beginning to spread to every region of Ireland. It will be the largest biomass power station to have been built in this country to date and will contribute to reducing our greenhouse emissions."
In response to the suspension of works, opposition politicians have called on the government to intervene.
"This news is a major blow to over 150 construction workers and their families as well as to the north Mayo region," said Fianna Fáil and Mayo TD Dara Calleary, speaking to The Journal. "This is an extremely important project which has brought employment back to the county. This project cannot be stalled. I am urging the Taoiseach to intervene and lead a concerted effort to work with the company to resolve the current issues."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
