A subsidiary of the company that operates most of the State's toll roads plans to build a €50 million biodiesel facility in the Port of Cork.

Bioverda, a bioenergy division of NTR plc, yesterday said it intended building one of Europe's biggest biodiesel production facilities in Cork harbour.

The development will employ 30 people and bring in significant new business for the Port of Cork. It will convert locally-produced and imported oil from rapeseed and other crops into biodiesel, which is used as a substitute for mineral diesel.

John Mullins, chief executive of Bioverda, said investment in this project would be a step forward for Ireland in terms of energy security and independence.

"The €50 million investment indicates our commitment to delivering renewable, environmentally-friendly alternatives to fossil fuels.We are looking forward to working with all stakeholders on this venture and anticipate its future success."

Bioverda plans to begin building the plant within the next 18 months, subject to planning permission. It will be capable of producing 200,000 tonnes of biodiesel a year.

Next month Bioverda will begin commissioning the first of two biodiesel facilities it is building in northern and central Germany. These plants will ultimately produce a combined total of approximately 250,000 tonnes (284m litres) of rapeseed oil biodiesel every year.

The Government plans to introduce more biodiesel into the Irish market in a bid to cut the Republic's dependence on imported fuel. In last year's budget Finance Minister Brian Cowen signalled he would introduce an excise duty relief scheme for biofuels.

The Department of Communications, Marine and Natural Resources has in recent months invited submissions for inclusion in the scheme.

Under the scheme, excise duty relief would be provided for biodiesel produced from oil seed rape, bio-ethanol and plant oils.

The Government's biofuels excise relief package is aimed at placing 163 million litres of biofuels on the Irish market by 2008.