The construction of two peat-fired power stations at Shannonbridge, Co Offaly, and Lanesboro, Co Longford, are crucial for Bord na Mona's future, its managing director said yesterday.
"They are vital for us. The future of our energy section is heavily dependent on them," Mr John Hourican told the firm's annual meeting.
The Government, which is supporting the construction, is waiting for a Public Service Obligation approval from the European Commission regarding the stations. Under this, the ESB would be compensated for sourcing electricity from peat-fired stations. Discussions continue on the level and collection mechanism of the Public Service Obligation levy which will be applied to the stations.
Bord na Mona will spend #22 million (£17.3 million) over the next five years on infrastructure to supply the new stations which will replace four existing ESB-owned peat-fired stations at Shannonbridge, Lanesboro, Bellacorick and Rhode which are expected to close in 2004 and 2005.
"On completion, they will provide ongoing support for over 1,500 Bord na Mona jobs in the midlands," said Mr Hourican.
He expects a decision from Brussels shortly, but admits he is "a bit concerned" about the time-frame for getting the stations up and running. Possible privatisation of Bord na Mona is not top of the agenda at the moment, Mr Hourican said.
"As we grow, we will have issues over ownership. There is a mood in relation to semi-State companies at the moment that ownership should be examined and that other models of ownership should be examined. But we're not in a hurry," he said.
The company has agreed in principle to an ESOP which would give employees a 5 per cent ownership of the company, he added.
Mr Hourican said Bord na Mona is committed to diversifying its business into new areas. These include a feasibility study for a 200mW wind farm through a public private partnership to complement its small windfarm in Mayo and alternative uses for the 250,000 acres of bogland which it owns. It has already announced a joint venture with CRH for the extraction of sand and gravel at a site near Rochfortbridge, Co Westmeath.
It is also considering buying the Finnish power company Fortum's stake in the recently opened peat-fired station near Edenderry, Co Offaly, and entering the gas market with international partners, according to Mr Hourican.
The company's operating profit before exceptional items for the year ended March 28th was #18.8 million, up 6.5 per cent on last year.
