Published: Friday, 19th March, 2010 3:35pm

Lumcloon to create 500 construction jobs

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Construction on a new gas-fired power station near Ferbane is due to begin around the end of this year, after An Bord Pleanála granted permission for the development on Monday.

The announcement is a major boost for the area as the 350 megawatt power station will create up to 500 jobs during its two year construction phase and 50 permanent positions thereafter.

A private consortium, Lumcloon Energy, lodged a planning application last August to build on the site of the old ESB power plant. Public hearings were heard in Tullamore earlier this year and the decision was fast-tracked after it was deemed a Strategic Infrastructure Development. It also has the backing of Offaly County Council.

It is projected to supply power to the national grid from the first half of 2012.

Nigel Reams from Lumcloon Energy said that the plan would bring much needed employment to Offaly as well as providing state-of-the-art power generation facilities for consumers nationally.

Lumcloon applied last year to the Commission on Energy Regulation to be included in the next round of licenses to provide power generation facilities. An announcement on the award of licenses is expected shortly. The regulator has granted a licence for a 100 megawatt development and now Lumcloon hope that this will be increased to their 350 megwatt plans.

Funding for the power station is being provided privately and not from banks, added spokesperson John Gallagher.

The two gas-fired plants will be environmentally-friendly in fuel usage and in its overall operation, according to Lumcloon. The proposed plant is part of a new generation of flexible generation facilities required to operate at high efficiency when electricity demand is high. It can quickly reduce output to lower levels when demand is low. It's specifically designed to support the Government's plans to develop and expand renewable energy.The companies behind Lumcloon, R&R Mechanical based in Tullamore, and Terotech International, have previously worked on projects such as Huntstown power station in Dublin and Tynagh power station in Galway.

A number of conditions have been imposed on the development, but work on the new power station is expected to begin in the summer.Offaly Fine Gael Deputy Olwyn Enright said the announcement is a much needed boost to the area.

"Work is expected to begin on the project this summer and with this in mind, I would encourage the company to utilise the skills of local people for this proposed plant. Having met with those involved last year, I was impressed by the professional manner in how they have approached this important project, which is to be built on the site of the old ESB plant in Lumcloon. The two new generating units that will be built are designed to support an adjoining wind farm," she said.

"I understand from those involved in the project, it's hoped to move onto the next stage as soon as possible and enter into discussions with the Energy Regulator to resolve issues relating to the wattage allocation for the proposed plant."