Curragh Biogas Ltd, a proposed large-scale anaerobic digestion (AD) plant located in Carnaross, Co Meath, is seeking farmers and co-ops to invest in the project.

The €25m AD plant secured planning permission last year and will process maize, grass silage, slurry and manure to produce biomethane gas for injection into the gas grid.

A key selling point of the proposed project was that it would have a degree of farmer ownership. This week, the company, which is headed by former IFA general secretary Pat Smith, stated that it is now seeking investors.

The company said that income from the plant would be underpinned by a new obligation scheme, which is expected to be launched next year and create a market for biomethane. While the details of the scheme are not yet known, it is expected that it will legally require gas utilities to include a percentage of biomethane in all gas supplied to customers.

Farmers, investors and co-ops are being invited to invest in the 50-gigawatt (GW) AD plant under a mechanism called the Employment and Investment Incentive Scheme (EIIS), whereby investors can avail themselves of up to 50% tax relief on monies invested in the project.

The EIIS investment will be in the form of redeemable shares in the project, with repayment forecasted after four years, the company said. The company claims that investors could receive a forecasted return on investment of 18% per year.

The project also secured a €5m Government grant under the Biomethane Pilot Scheme, covering 20% of the build cost.

Feedstock

The company is also looking for farmers to supply feedstock to the plant and take digestate.

Pat Smith said: “This investment represents an exciting opportunity for farmers to diversify some of their farming activities into renewable energy and earn a sustainable long-term income from growing crops and grass silage for this new biomethane plant.”