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 and claims a forecasted return on investment of 18% per year.

The company, which is headed by former Irish Farmers' Association (IFA) chief executive Pat Smith, launched a new investment opportunity for its 50GW AD project for farmers and other investors looking to get involved in the biomethane industry.

The proposal is to invest under the Employment and Investment Incentive Scheme (EIIS) rules.

Under EIIS, investors can benefit from up to 50% tax relief on monies committed to qualifying projects.

Funds raised for Curragh Biogas Ltd are being managed and overseen by Business Venture Partners (BVP), specialists in EIIS fund management.

Business case

EIIS funds will be combined with other equity and debt financing, alongside a €5 million Government grant secured under the Biomethane Pilot Scheme.

The company said the projected income from the project will also be underpinned by the soon-to-be-launched Government Renewable Heat Obligation Scheme, which will mandate gas utilities to include a percentage of biomethane in all gas supplied to consumers and businesses.

Return

The EIIS investment will be in the form of redeemable shares in the project, with repayment forecast after four years.

In the interim, investors' monies will be overseen and independently managed by Business Venture Partners (BVP), who will also have a seat on the board of Curragh Biogas Ltd.

Funds invested via the EIIS are entitled to 50% tax relief under current EIIS rules. The company claims a projected return on investment (ROI) is 18% per year.

Feedstock

Farmers who supply feedstock to the plant for a minimum agreed period and decide to invest in the project through this EIIS scheme can benefit from investor status, where their original investment, net of tax relief, is returned, while the shareholding is retained for the longer term.

Mr Smith said that, separate from the EIIS investment opportunity, Business Venture Partners would oversee investments from interested companies and farmer-owned co-op groups wishing to invest in this new industry on either an equity or loan note basis.

Opportunity

Director of Curragh Biogas Ltd, 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.”

He added that farmers would also benefit from significantly reducing their fertiliser costs, with the organic fertiliser produced as a digestate by-product of biomethane production from the new plant.

Mr Smith said that Business Venture Partners (BVP) have a strong and successful track record in managing EIIS investments, and he was delighted to have them involved in this project.

He noted that he and his team at Curragh Biogas Ltd would be speaking directly with interested farmers about this opportunity in the coming weeks. This investment opportunity is open to all investors looking to make an EIIS investment in 2024, he said.

Planning permission

The project received planning permission from Meath County Council in February 2023, but a serial objector, John Callaghan, appealed the decision.

The appeal was made to An Bord Pleanála, Ireland's national planning body, with a decision expected in June.

However, in April, the objector withdrew their appeal, paving the way for the project to proceed.