Thursday, December 19, 2024

Bord na Móna reports record profits of €106m as it leaves peat behind

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The “brown-to green” strategy involves the 91-year-old former turf company closing all its former peat operations, and no longer using peat as a energy source.

It said it is on track to become Ireland’s biggest provider of renewable energy

Bord na Móna says the transformation was completed last December when it stopped the use of peat at its Edenderry power station, and invested €100m in its decarbonisation, including switching to biomass.

Profits for the last financial year included a one-off gain from the sale of its 50pc stake in Electricity Exchange DAC, at a profit of €7.3m.

It also realised a profit of €57.1m from entering a strategic partnership with SSE Renewables last March.

“These results reflect the strong performance in Bord na Móna’s core renewable-energy business, with operating profit increasing from a previous record €95.2m in FY23,” the company said.

The Bord na Móna plant at Edenderry, Co Offaly

Bord na Móna claims its strong financial performance will allow the business to become a leader in decarbonising, with the ability to invest in the delivery of 5GW of renewable energy over the coming years.

It said it is on track to become Ireland’s biggest provider of renewable energy, making a “substantial contribution” to the goals set out in Ireland’s Climate Action Plan.

Over the past year Bord na Móna invested €164m in such projects, including €31m in joint ventures. This included the launch of the second phase of Oweninny Wind Farm with the ESB, which is a joint investment of €320m.

Oweninny, in Co Mayo, is the country’s largest wind farm, with a total capacity of 192MW, enough to meet the energy needs of about 140,000 homes.

Last April the semi-state invested with Gas Networks Ireland in a project to develop a 22km pipeline to connect its renewable energy complex in Edenderry to the national gas network.

Bord na Móna says it has made further progress on the rehabilitation of peatlands, with almost 4,000 hectares restored over the last year. The aim is to return them to being areas of natural beauty and biodiversity.

Commenting on the results, CEO Tom Donnellan said: “Our current financial positioning will be the enabler of further investment and innovation which will secure both the future of the business, as we develop our 5GW renewable energy pipeline, and support Ireland’s clean energy capability as we chart a path to net zero emissions by 2050.

Bord na Móna CEO Tom Donnellan

“In the last year, we have achieved many important milestones during the successful delivery of our brown to green strategy, with the final unit of electricity generated from the burning of peat at Edenderry power station at the end of 2023.

“This opened a new chapter for Bord na Móna, as we continue our journey as a climate solutions and renewable energy company supporting Ireland’s progression towards a climate neutral future.

“Bord na Móna’s new and existing joint ventures and partnerships with companies including ESB, SSE Renewables and Ocean Winds are playing a crucial role in bolstering our ability to deliver our 5GW renewable energy pipeline.

“We will continue to explore new partnerships that contribute to our performance as a business and importantly deliver positive and sustainable outcomes for the state.”

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