Dáil debates

Thursday, 23 February 2023

Saincheisteanna Tráthúla - Topical Issue Debate

Bord na Móna

4:35 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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In the short time available, I wish to summarise where Bord na Móna has come from, where it is at and where it is going, and specifically thereafter to make request of the Government as a result of ongoing changes.

Bord na Móna's remit and role as set down by the Government back in the 1940s was to create sustainable jobs and deliver local affordable sources of energy. It was gifted lands by many landowners who could not before that derive a livelihood or make a contribution to their communities' well-being. Bord na Móna delivered well on that remit. It built communities with their power plants on various bogs, engineering works, shops, briquette factories, horticultural products, waste management industries and the leasing of bogs and plots to many members of various communities, and ensured those regions' success. That newfound atmosphere of pride and wealth generation ensured that following generations had greater education choices and were enriched by culture and sport as their communities, villages and towns grew over the past 80 years.

The transition necessitated by climate change and decarbonisation sees a massive ongoing transition of 125,000 acres. I do not doubt the merits of the rewetting programme or the commercial acumen of investment in renewable power generation projects by Bord na Móna. Whether it is inland, offshore involving joint ventures or solar-based projects, all based on good planning practice, it can, is and will reap a reward for the State both commercially and in its efforts to address the unfortunate glaring energy deficiencies we have today.

I note the commitment of Bord na Móna to Edenderry Power to ensure that its role is continued by virtue of a €90 million investment. I welcome the 650 MW gas plant at Derrygreenagh. I am closely monitoring progress on the proposed energy park encompassing 3,000 ha of land in counties Offaly, Westmeath and Meath, where zero-carbon energy generation assets will locate with industrial-scale, high-demand energy users, such as data centres and storage facilities. I am aware of the impending cessation of operations at the briquette factory in Derrinlough, which is the last original core activity. I am conscious of the ongoing talks between management and unions to ensure relocation and training options are agreed. That makes now the opportune time for the Sustainable Energy Authority of Ireland to provide new grant aid for new windows and doors, together with boiler alterations, to accommodate hydrotreated vegetable oil and biogas fuels, ensuring a 50% reduction in emissions and a contribution by those households that otherwise would not have this.

As already stated, in the 1940s, landowners made lands available for the greater good of communities in the region. There is now a brilliant opportunity for Bord na Móna and the State to reciprocate and return that favour to communities. Community energy projects should not be confined to a 5 MW cap. The EU directive to be transposed into Irish law relating to community projects clearly states that such projects can compete on a level playing pitch with commercial projects. I am aware, for example, of a community development association in Ferbane which, in conjunction with the local council, expert ecologists and relevant engineering experts, has identified an area of land in the ownership of Bord na Móna which has access to relevant infrastructure which could generate, based on it partnering with the commercial sector, a return of €400,000 per annum to the respective community. This can and must be pursued and replicated at other locations.

I call on the Minister and Government to put in place a task force that can specifically recommend changes to the relevant legislation or the semi-State remit or terms of reference that may exist within the likes of Bord na Móna in order to ensure that such potential can be realised and bring communities together and make sure that they can participate in a demand-led drive towards energy provision that is lacking at present. We cannot wait, despite the good intentions and goodwill, and notwithstanding the work that has been done by Bord na Móna in that regard. There are lands that should be made available to the wider community and the commercial sector to allow them to be in a position to come out of this decarbonisation process far better than when they went into it.

4:45 pm

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party)
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I welcome the opportunity to outline the position on these matters on behalf of my colleague, the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan. The Minister apologises for not being available to attend in person. I should point out that Bord na Móna is a commercial State company. Operational matters such as land use are the responsibility of the board and management team and not matters in which the Minister has any direct role or function.

Bord na Móna's repositioning as a climate solutions company has been progressing for many years and through its brown to green strategy, Bord na Móna is involved in renewable power generation, recycling, resource recovery and peatland rehabilitation. Peatlands play an important role in carbon storage. Rehabilitated peatlands in particular have the potential to contribute significantly to reducing emissions within the land use, land-use change and forestry, LULUCF, sector. Peatlands cover approximately 21% of Ireland's landscape and contain approximately two thirds of Ireland's carbon stock. The peatland rehabilitation measures set out in the Climate Action Plan 2023 provide for the rehabilitation of 33,000 ha of Bord na Móna peatlands by 2025 and will contribute significantly to the reduction of carbon dioxide emissions for the land use sector.

The commitment by the company to formally cease harvesting peat has allowed Bord na Móna to focus on challenges concerning energy supply, biodiversity and the circular economy. As we are all aware, the electricity sector faces an immense challenge to meet its requirements under the sectoral emissions ceilings. Electricity will play an important role in the decarbonisation of other sectors through electrification, including transport, heating, and industry. The Climate Action Plan 2023 sets out a number of actions to accelerate the development of offshore wind, onshore wind, and solar through a competitive framework to reach 80% of electricity demand from renewable electricity by 2030. This targets 6 GW of onshore wind and up to 5 GW of solar by 2025.

Bord na Móna is constructing two of Ireland's largest wind farms. These will generate sufficient electricity to power 120,000 homes. The investment involved is €250 million. These projects form part of the company's ten-year plan to invest in excess of €1.6 billion in renewable energy infrastructure and generating assets to position the company as the country's leading renewable energy business.

Across its 80,000 ha land bank, Bord na Móna operates more than 30 different sites and public amenities, including Lough Boora Discovery Park and Mountlucas Wind Farm. At its peak, Boora supplied over 1 million tonnes of peat every year, helping power Ireland's industries and homes. Lough Boora is now a sanctuary for wildlife and an amenity for the community. This former cutaway bog has been transformed into a haven for biodiversity and includes 50 km of walking and cycling trails, a 40 ha sculpture park, a modern visitor centre and an array of lakes for fishing and recreation. The 1,100 ha wind farm at Mountlucas is home to a growing abundance of plant and animal species. The wind farm includes an interactive learning hub for school and private guided tours, and 10 km of walking and cycling trails which are open to the public year-round. Overall, support for Bord na Móna's strategy includes the use of its land as a unique asset in working towards Government's policies and objectives.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister of State for his reply. I agree with him and cannot dispute much of what he said I acknowledge and appreciate much of Bord na Móna's work in respect of its decarbonisation programme, its commitment to renewable projects and the major investment it has made in partnerships in the context of onshore and offshore projects and solar programmes. I commend it on that. I know that a great programme of rehabilitation and rewetting is ongoing and that funding has been made available by Government and the EU in this regard. Having initiated it when I was in opposition in the previous Dáil, I am also aware of the ring-fencing of carbon tax funding to assist with transition, which the Department has played a role in recently. The European Commission, on foot of an application from the Government to include peat regions in the coal regions, is providing €170 million by means of a transition programme. We now know the regional authority will begin to administer that money in the coming months. I am aware of tourism projects such as that at Lough Boora, which involved the local community working together with the board to ensure it became the success that we know it is. It involves many aspects of biodiversity too.

There is a vast excess of land beyond that mentioned which the board might not necessarily be able to keep pace with, considering the demands, expectation and ambition contained within the State's acknowledgement of the fact that it has to ramp up energy provision in order to deal with our current problems. In the 1940s, when Bord na Móna was given its original remit, many people gave up their lands because they had no prospect of deriving a livelihood from them or of making a contribution to their respective communities otherwise. Many lands were the subject of compulsory purchase by the State. There is now a bank of excess land. Communities are prepared to work with the commercial sector to bring forward projects that can deliver an income to those communities to allow them to address the many deficiencies and inefficiencies that exist. This would also allow them to administer much that is contained in county development plans that otherwise would not be administered. An annual income could be derived from all of this. We are talking about the commercial semi-State sector here. The Minister of State will say that the State lacks the authority to interfere with that sector. Despite this, I am of the view that the Government must look at modernising Bord na Móna's remit.

The Government should establish a task force to create or amend legislation, or amend the terms of reference, in order for such lands to be offered to the commercial and community sectors so that they can participate and derive an income over and above what they have at present and ensure communities prosper and come out of decarbonisation better than they went into it.

4:55 pm

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party)
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As Deputy Cowen knows, the midlands have historically been very important in Ireland's energy production. Bord na Móna was a large part of that, as was the ESB, and many people derived a living, an income and, later, a pension from Bord na Móna and the ESB. I know that is significant. The great efforts the Deputy went to secure just transition funding at the EU and national levels and in the programme for Government to ensure areas in the midlands are compensated and helped to change also have to be acknowledged. Change is possible and is happening. Bord na Móna is still very much in the energy sector. In my constituency, I see the réalt na mara off the coast of Dún Laoghaire, which Bord na Móna is trying to develop for offshore wind. I have visited Mount Lucas and seen the huge wind farm the company has developed there and the public amenities below it.

We have been through a range of different measures related to the land, whether it is rehabilitation through bog rewetting, rewilding or the provision of public amenities and new energy facilities. The Deputy would like to see a task force that strategically addresses what will happen with Bord na Móna's land in the future. He has drawn attention to the fact that, in the past, there was a process by which Bord na Móna acquired land from the public and that this process is now perhaps going into reverse. He stated the public good should benefit from Bord na Móna's legacy of land. If he wishes to make a proposal in that regard and wants to meet me, the Minister, Deputy Ryan, or our officials, I will be happy to facilitate that. Any proposal from Deputy Cowen or the community would be very welcome and I appreciate his interest in the matter. However, I think he will acknowledge that a lot of work has been done at national level to facilitate a just transition from Bord na Móna's history to a bright future for the midlands and for Ireland.