Facilities management company Dalkia Ireland has acquired Ballyragget Power, an ESB subsidiary which specialises in developing and operating combined heat and power (CHP) plants in Ireland, in a deal that is understood to be valued at about €14 million.

Ballyragget Power has built and operates five CHP plants, which provide heat as well as power.

The five plants are located at the Glanbia facility in Ballyragget, Kilkenny; at the Bausch and Lomb and Waterford Crystal facilities in Waterford city; and on campus at UCC in Cork and UCD at Belfield, Dublin.

The company operates a total of six engines and two turbines at the five sites, generating a total of 19mw of power. The five sites are estimated to account for 10 per cent of the total CHP market in Ireland.

The plants generate electricity and produce heat for the buildings and processes. Because CHP plants use heat that would otherwise be disposed of, it represents a considerably more efficient use of primary fuel than conventional electricity generation, according to Dalkia.

CHP plants also achieve significant reductions of CO2 emissions compared with separate heat and power generation systems.

The plants currently operated by Ballyragget Power are staffed by subcontractors who will be unaffected by the transaction, Dalkia said.

Dalkia Ireland managing director Pat Gilroy said the acquisition will provide Dalkia with an opportunity to develop its CHP business in Ireland.

"The acquisition of Ballyragget Power has significantly increased our strategic objective of becoming the leading provider of energy and facilities management services in Ireland.

"In addition, we are confident that this acquisition will enable us to offer a more diversified product and service range to both our existing and future customers," he said.

Established in 2001, Dalkia Ireland employs 420 people and has annual revenues of more than €58 million.