Bord na Móna plan €500m expansion

BORD NA MÓNA is planning to invest €500 million over the next five years to fund its expansion into hydrogen-based fuels, wind energy, waste management and environmental protection.

The group’s chief executive, John Hourican, said yesterday that a number of joint ventures are currently at an advanced stage.

Government statute prevents the company from borrowing over €127m, but the company last year ruled out going public as a means of getting over that hurdle.

The group will use joint ventures to progress its role within the commercial life of the economy.

Mr Hourican said this time last year that going public to raise funds was not a realistic option. “We have a long way to go before we have an issue with privatisation,” he said.

On the other hand if the Government thought differently, “we would be happy to react to that situation if it ever arises”, he added.

On the hydrogen and environmental side, the latter is the more immediate in terms of delivering long-term growth.

The group is the second biggest landholder in the country.

Many of its sites are suitable for landfill and this area of development is being pursued.

The group will not be getting involved in the controversial incinerator end of the business.

However, it will look at all other aspects of the business where it has been developing expertise. Plans for a major waste site in Kildare are already in the pipeline. Hydrogen is a 15-year timeframe on the other hand, Mr Hourican said.

But buses driven on hydrogen are already in use in the US and Europe. Some hydrogen filling stations already exist in the US.

Mr Hourican said previously he believed the alternative renewable energy battle would not become popular until governments placed more taxes on carbon fuels.

It is involved in a joint venture with the ESB in Mayo to produce 320 megawatts of power over time. Initial units have been installed and the plan is for a gradual build up, he said.

But connecting to the national grid was problematic at the moment, he added.

Mr Hourican said the critical issue facing the economy was the reliance on imported fuels.

“The country is importing between 70% and 80% of our energy at the moment. Seven percent of our energy is accounted for by peat, compared with 40% back in the 1970s, while wind is accounting for 7% as well, plus whatever the country is getting from Kinsale gas. “Ireland at this stage is 70% to 80% dependent on imported fuels. That is a vulnerable position to be in and Bord na Móna was committed to being part of the solution,” he said.

As a state-owned company Mr Hourican said a key objective was to enhance shareholder value on a “sustained basis.”

Diversification was the other key part of its strategy, which is reflected in the fact that sales from peat now account for less than 49% of its revenues.