SSE takes final €300m investment decision on Kerry power station

SSE's site in Tarbert, Kerry

SSE Thermal has announced it has taken a final investment decision to build Tarbert Next Generation Power Station in Kerry, a 300MW plant which will run on biofuels.

The power station will also have the potential to convert to hydrogen, with the total capital expenditure of the investment totalling €300m. 

Enabling works are now underway ahead of full construction commencing later this year with planned completion towards the end of 2027. Planning consent was granted by An Bord Pleanála in October last year, with the project holding a 10-year capacity agreement which was awarded in 2023.

Following the investment decision, SSE Thermal has selected Ansaldo Energia and Limerick-headquartered Atlantic Projects Company (APC) as its lead partners on the project.

Ansaldo will provide the turbine for the Open Cycle Gas Turbine plant, while APC will provide the balance of plant services.

The decision to build a new power station at Tarbert follows the closure of the original plant in 2023 in line with environmental requirements, with the site first generating electricity in the late 1960s.

The power generated at Tarbert will help to support Ireland’s energy security while delivering a renewables-led system, SSE said, with the use of sustainable biofuels,  specifically Hydrotreated Vegetable Oil, providing a lower carbon alternative to traditional fossil fuels.

In addition to Tarbert Next Generation Power Station, SSE Thermal has also delivered a Temporary Emergency Generation (TEG) project at the site at the request of Irish authorities. The 150MW of TEG, which will cease operations no later than March 2028, was commissioned in January this year.

Finlay McCutcheon, Managing Director of SSE Thermal, said: “This is a landmark moment for Tarbert, which has a proud history of energy generation dating back almost six decades.

“Our focus now shifts to the safe and timely construction of Tarbert Next Generation Power Station, working closely with our partners at Ansaldo Energia and APC to deliver this vital project. 

"At the same time, we hope to see the new Government in Ireland bring forward the enduring low-carbon solutions needed to support the country’s net zero goals.”