Oireachtas Joint and Select Committees

Tuesday, 13 November 2018

Joint Oireachtas Committee on Climate Action

Third Report of the Citizens' Assembly: Discussion (Resumed)

3:00 pm

Mr. Tom Donnellan:

This round of restructuring costs in the region of €50 million. It is a decarbonisation plan to cut our emissions by a certain level. It will probably cost another €50 million as we flesh out to 2027 or whenever we finally exit peat so it will cost about €100 million.

We also see a significant shift with regard to peat. We have two businesses in peat production. We have the retail business, of which 80% is in the UK. We see that business going peat free and we have been shipping peat free to the UK for a number of years. All indications are that it will continue to move in that direction so some of our large customers are saying they want to go peat free by 2020. We are still in discussions with them and we have not finalised that. If that happens, that will significantly reduce the volume of peat on our retail side. The professional peat side will continue for some time as it is used by the professional sector to grow food and there are not too many commercial alternatives.

There has been a decline in the peat briquette business. We still see a need. Approximately 20% of households in Ireland use solid fuel to heat their homes exclusively. We see a demand for that. We anticipate that as this problem is addressed and that as the carbon tax comes into play, sales of briquettes will decline. We will come back to the Deputy regarding the Garryhinch bog.

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