NTR to build biodiesel facility

NTR Plc has announced a major investment in the former East Germany, where it plans to build a biodiesel facility.

The initial investment will be €30 million, but by the time the project reaches full scale, investment could be well over €100m within a few years, said Jim Barry, NTR chief executive.

Best known as the country’s leading toll road operator, NTR is also involved in wind energy and waste management.

This step into the biofuels arena is a first for the group, which normally cuts its teeth in the Irish market before expanding overseas.

Emerald Biodiesel GmbH, in which NTR is the major shareholder, will shortly commence construction of an integrated oil mill and biodiesel facility in the state of Mecklenburg-Vorpommern, approximately 100 kilometres north of Berlin.

Production will start before the end of 2006 and involving an output initially of 50 million litres of biodiesel from rapeseed oil.

As the group establishes a market presence among Germany’s truck fleets already adapted to using the biofuel, it will boost capacity by 2008 to meet the anticipated growing demand.

Locally grown rapeseed will be used as the main raw material.

Mr Barry said biodiesel is destined for the German transport market and arrangements are already in place with large transport companies.

“Our entry into the biodiesel sector is compatible with NTR’s existing environmental services businesses ...We have been particularly encouraged in this initiative by the support provided by the Federal Government in Germany, through the favourable taxation regime it has in place for biofuel production,” he said.

The project has been developed in conjunction with EPC, a German engineering company specialising in the biofuel sector.

NTR said the move underlined the group’s commitment to significant expansion outside Ireland.

Roughly 90% of group turnover is currently generated in the Irish market but that will be down to 50% in a few years, said Mr Barry.