Greencore plant could produce ethanol with €80m investment

The conversion of Greencore's Mallow sugar factory into an ethanol production facility would enable Ireland to meet 75 per cent of its ethanol production obligations under an EU directive, a report into the viability of the project has revealed.

According to a report commissioned by Cork County Council, the Mallow factory could, at maximum production capacity, produce 135 million litres of ethanol from beet and 35 million litres from wheat. That would give a total maximum capacity of 170 million litres per year.

The report came as Irish Sugar was briefing residents close to its other mothballed plant in Carlow of plans to clear the site.

The company said this would take up to 18 months and would happen under the supervision of the Environmental Protection Agency (EPA).

Responding to questions about asbestos on site, the company said there was some asbestos roofing left there, though most had been removed in recent years. The remaining material would be removed by a contractor licensed by the EPA and posed no risk to human health.

The Mallow plant proposal comes as EU member states are expected to replace 5.75 per cent of their petrol and diesel transportation fuels with ethanol by 2010 under the EU Biofuels Directive of 2003.

If those targets are met, it would result in a market of 220 million litres of ethanol in Ireland. Achieving maximum production capacity of 170 million litres per annum at Mallow would mean the plant could supply "twice the current Irish target of 85 million litres by 2010 and 75 per cent of the EU directive target", the report states.

Consultants Cooley Clearpower Research found the plant would need some €45 million - €50 million investment to upgrade facilities to produce ethanol from sugar beet while a further €10 million - €15 million investment would be required to upgrade it to handle wheat.

According to the report, it would cost an investor looking at buying and operating the Mallow site for ethanol production €80 million - €95 million, including the €25 million - €30 million needed to buy the site from Greencore. That was less than needed to build a greenfield ethanol plant.