Construction of a €180 million biomass power station in north Mayo has been suspended due to financial difficulties, according to the developers.
Mayo Renewable Power said it had suspended its main contractor due to an inability to “conclude the financing”.
Over €90 million has been spent on the project, planned for the site of the old Japanese-owned Asahi Chemicals acrylic fibre manufacturing plant in Killala.
Taoiseach Enda Kenny laid the foundation stone last October for the 42 megawatt biomass combined heat and power generating station.
He described it as a “vote of confidence in the Irish economy”.
Mayo Renewable Power was backed by Wiechert Enterprise, a US investment company based in New Jersey.
Jobs for up to 350 people were promised during the two-year construction phase, with a full-time staff of up to 30 on completion and indirect employment for over 100.
Mayo Renewable Power said it hoped to use the suspension period to review its options on completing the project. It was being financed by a number of banks and was expected to be completed by 2017.
