Bord Gáis confirm €300m gas-fired power station

BORD Gáis has confirmed it hopes to have its first gas-fired power station operational by 2009, at a cost of nearly €300 million.

The confirmation came yesterday after Cork County Council granted the company planning permission for a massive 440 mega watt power station at Whitegate, Co Cork and Bord Gáis hopes that when completed it will enable it to sell electricity to the domestic market.

Dave Kirwan, the company’s head of strategic investments, said that they had chosen a 25-acre site at Whitegate because it was adjacent to the ConocoPhillips refinery and thus offered a back-up fuel source. Importantly, the site also has access to the national grid.

Mr Kirwan said Bord Gáis intended to lease the land from the refinery and hoped that construction would get underway in September or October of 2007. It is anticipated that during construction approximately 300 people will be employed and when the plant is up and running it will employ 35 operators.

In 2001 Bord Gáis diversified into electricity production, through short and medium contracts with ESB subsidiaries, and currently has 9% of the market volume in the country.

However at present the company is only supplying electricity to small and medium enterprises as well as industrial customers.

“We hope to start pursuing domestic customers when the Whitegate plant becomes operational,” Mr Kirwan said.

He added that while Bord Gáis currently sources electricity from a range of power producers, the company’s ability to significantly grow its electricity supply business is dependent on securing its own source of power.

“The investment in an independent power plant is an important element of our stated long term dual fuel strategy and will be a significant factor in allowing the company to grow its position as a provider of electricity in the Irish market,” he said.

Gas to power the plant will be supplied from the Kinsale gas fields.