Peat briquette factory to close later this year

An anaerobic digestion facility is one of the projects being considered for the site of the Derrinlough briquette factory, in Offaly, near Cloghan, which is due to close at the end of this year.

Cathaoirleach of Birr Muncipal District, Cllr John Carroll, said this week that feasibility studies have been carried out on the possibility of an anaerobic digestion facility for the site and said he will be seeking a meeting with Bord na Móna “at the earliest opportunity” to see what plans they have for Derrinlough.

In a statement issued to the Offaly Independent on Wednesday, Bord na Mona confirmed its plans to conclude peat production at Derrinlough “later this year” but added that it is engaging on “redeployment and retraining opportunities across the wider businesses” as part of its commitment to support “all impacted employees.”

The statement said the move to cease peat production at the Offaly plant when existing peat stocks have been exhausted is part of the company’s wider commitment to “complete its transition from a traditional peat business to a climate solutions company”.

Independent TD, Carol Nolan, whose husband has been employed in Derrinlough for a number of years, has expressed her “deep disappointment” at the lack of engagement from Bord na Móna with their employees on the future of the company.

“There is a big vacuum when it comes to information, and there always has been since this whole process of Just Transition began,” said the TD, who has now called on the government and job creation agencies such as the IDA to “step up to the plate” and speed up the creation of jobs.

“I am still sceptical of Just Transition because we are hearing about all the jobs that are going to be created, but it’s all pie in the sky, what we need to see are real jobs, and good jobs which can replace the employment opportunities that Bord na Móna and the ESB traditionally provided in rural Offaly,” she said.

While acknowledging the work of Laois Offaly Education & Training Board in providing apprenticeship courses, Deputy Nolan said there needs to a “a renewed focus” on job creation in West Offaly.

Cllr John Carroll, said it was “on the cards” that the briquette factory in Derrinlough would close this year, despite the fact that Bord na Móna were insisting that it would remain open until early 2024. “With the rate at which peat production was being scaled back it was inevitable that the factory would run out of peat to produce the briquettes,” said Cllr Carroll, “and machinery wasn’t being either repaired or replaced, so an earlier than expected closure date was expected.”

He has called on Bord na Móna to be “open, frank and transparent” about their future plans for the factories and lands that they own all across West Offaly, and said nobody wants to see Derrinlough being turned into “another derelict site”.

Cllr Carroll claimed that the company has been “playing their cards very close to their chest, and it’s way past time that they came out and told the public what their plans are.”

Derrinlough employed over 100 people at full capacity and also provided huge employment opportunities for seasonal workers. It's thought over 60 people are currently working there.

“All avenues need to be explored in a bid to provide alternative employment for the workforce,” said Cllr Carroll. “Bord na Móna is a very profitable company and Offaly has been very good to them, so they need to engage with the people in an open and honest manner”.

SIPTU representative Henry O’Shea confirmed that talks on the next round of the Just Transition agreement with Bord na Móna are due to begin again on Monday of next week, and the proposed closure of Derrinlough will also be on the table at these talks.

“We still haven’t been given a definitive date for the closure of Derrinlough, but we knew it was going to happen sooner rather than later because the quality of the peat just isn’t good enough to continue making briquettes,” he said.

While he expressed the hope that all employees in the briquette factory can be redeployed, the SIPTU workers’ representative said he would not be “fully confident” that this will happen, as it depends on a number of factors. “We will continue to keep the lines of communication open and we will be discussing the redeployment of as many employees as possible,” he added.

Meanwhile, local Fianna Fail TD, Barry Cowen, said he has emphasised to the Bord na Móna Chief Executive, Tom Donnellan, that all aspects of the closure of the Derrinlough facility and the redeployment of staff must be agreed on between management and the unions.

“It is imperative that management work with the unions and that this is done by agreement, rather than by stealth,” said Deputy Cowen this week and “the best possible scenario is that the staff can be redeployed but, if not, then they need to get all their statutory entitlements”.

Speaking in the Dail recently, Deputy Cowen called for the establishment of a task force that can recommend changes to the semi-State remit of organisations like Bord na Móna to allow local communities to set up their own enterprises. He said there is a need to “bring communities together and make sure they can participate in a demand-led drive towards energy provision that is lacking at present.”

He referred specifically to a pilot energy generation project currently being developed for Noggus Bog near Ferbane which has the potential to generate up to half a million euros for the local community.

Deputy Cowen told the Offaly Independent that this project is still “at the very early stages” but added that, if it could be shown to be successful, it could pave the way for similar projects all across West Offaly on lands which are currently under the control of Bord na Móna.

He pointed out that landowners had “made their lands available” to Bord na Móna in the 1940s for the “greater good of communities” in Offaly and other places and it was now time for the State and the semi-State body to “reciprocate and return that favour to these communities”.