Bord na Móna raising €1.6bn for climate action projects

The semi-State company is shifting from its peat-based energy-generation towards renewable sources
Bord na Móna raising €1.6bn for climate action projects

Bord Na Mona's Oweninny Wind Farm. The semi-State company plans to generate enough renewable energy to supply nearly a third of all Irish homes by 2030.

Bord na Móna said it plans to raise €1.6bn in order to fund a series climate action projects across its 200,000-acre landholding.

The semi-State company is shifting from its peat-based energy-generation towards renewable sources. It has six projects in planning and construction phase with another six to follow before 2030. The company is currently generating 10% of Irish renewable electricity and is aiming to achieve a 300% increase in its renewable energy output in this decade. 

Bord na Móna said they are looking at different options to raise the funds but the sale of green bonds is understood to be one of those options.

We have already discerned a strong appetite from investors for the major renewable projects that we are developing

The funding and investment announcement follows the company’s recent success in the first competitive auction under the Government’s new Renewable Electricity Support Scheme (Ress-1). Two Bord na Móna wind energy projects were successful in their bids, winning 158MW total capacity in the auction representing 25% of the total capacity awarded.

Tom Donnellan, Bord na Móna chief executive, said their purpose is to help Ireland become carbon neutral by 2050 and said they will be generating enough renewable energy to supply nearly a third of all Irish homes by 2030.

He said: "We are committed to delivering this major pipeline of critical climate action projects. Bord na Móna has a national and business imperative to use our land and other assets to develop these projects. We have already discerned a strong appetite from investors for the major renewable projects that we are developing.”

The company has appointed Goodbody Corporate Finance to manage the fundraising for a series of largescale climate action projects, including wind and solar energy infrastructure developments for delivery in this decade.

Last week the European Commission proposed cutting 55% of Europe’s emissions by 2030, up from its previous goal of 40%, and said it would use hundreds of billions of euros worth of green bonds to help fund the target. The European Commission funding plan will make €225bn available for climate action projects across the Union.

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