Plans to develop and grow a bioenergy industry in Ireland have received approval from the Cabinet this week.

Minister for Communications, Climate Action and Environment Denis Naughten brought forward plans for the creation of a new bioenergy division of Bord na Móna (BnM) known as Bord na Móna Bioenergy. The division will take on the work of the existing body, Bioenergy Ireland.

The Cabinet meeting took place on Tuesday of this week.

Key details included within Minister Naughten’s include:

  • Evaluate the feasibility of growing energy crops on cutaway bogland near BnM plants.
  • Support the Department of Agriculture in the development of a new energy crop grant scheme.
  • The delivery of at least three substantial international biomass supply chains including an African biomass supply chain and build a pellet plant in the US.
  • Promote afforestation by private landowners, facilitated by Coillte’s recent loan agreement with the European Investment Bank.
  • Contribute to the development of the ongoing demand for biomass fuel.

    • Minister Naughten said the creation of the new entity will deliver cost savings to the taxpayers as it he considers it to be “more cost-effective to launch within the BnM architecture rather than to launch a new semi-state”.

    “BnM Bioenergy would support the development of the domestic biomass market by mobilising the biomass supply potential of the privately-owned forestry sector and provide further opportunities for sustainable indigenous employment. BnM BioEnergy would therefore be a supply-side measure in developing a functioning domestic biomass market of scale,” he said.

    IFA renewables project team leader James Murphy cautiously welcomed the creation of BioEnergy Ireland. “It is important to welcome progression in this area but it is a cautious welcome.

    “I would express concern this new BnM body would have exclusive access to all supports from the renewable heat incentive scheme which is expected to be launched by Minister Naughten in the future.’’

    “This scheme will underpin all actions in the renewables space and it cannot be dominated by a state body,” Murphy said.

    Following Tuesday’s Cabinet approval, BnM Bioenergy is expected to be launched at the National Ploughing Championships.