Utilities group NTR will invest €120 million in a new biofuels division it believes will deliver €300 million in annual revenues within three years.
The group, which is already involved in toll roads, waste management and electricity generation, yesterday launched a new division, Bioverda. This will develop new businesses in biofuels and bioenergy generation in the Republic, Germany and the Americas.
NTR executive John Mullins, who has been working with its waste management operation, Greenstar, will be its chief executive.
Bioverda is already building two biodiesel plants in Germany, at Neubrandenburg and Ebeleben in Thuringen, that will process rapeseed to produce the motor fuel.
Last year it announced plans to begin this, and has formed partnerships with a number of rapeseed producing co-operatives in Germany, which is the biggest biodiesel market in the EU.
Mr Mullins said yesterday that NTR had committed an initial investment of €120 million to Bioverda. This includes €67 million on the two German facilities and expenditure on a facility in Cork that will convert liquid waste like slurry to energy.
It expects the business will deliver a turnover of €300 million within three years, and that the Irish company will be one of the top five operators in the sector in Europe within that time.
In addition, Mr Mullins said Bioverda would make a pretax profit in its first full year of operation and should employ 200 people. "Our aim is to be in motion on five plants within three years," Mr Mullins said. "It's what we're setting out to do."
The move is a response to rising demand for renewable energy. In addition to biodiesel, it will also focus on using methane from landfill sites and coalmines as an energy source, and using liquid waste (slurry, etc) to generate electricity.
It has applied for planning permission to Cork County Council for the waste-to-energy plant there. Mr Mullins said he expects that process to take three years.
"Planning here is legally-based rather than purely administrative as it is in other countries," he said. "There are always objections to infrastructural projects."
The Republic has made commitments to Brussels and under the Kyoto Agreement that will require it to cut dependence on fossil fuels in favour of renewable energy. Failure to keep to these will result in the exchequer facing heavy fines.
The EU is demanding that 5.75 per cent of transport fuel be biofuel by 2010.
