Falling down a boghole in north Mayo is not something that happens to a trans-national corporation. However, even large organisations can make mistakes, and the Geesala peat plant is a monument to this.
Norsk Hydro is a giant in oil and gas exploration and refining, along with metals and chemicals, and is Europe's largest supplier of fertiliser and the world's largest producer of farmed salmon.
The conglomerate was confident of success when it took over the peat plant five years ago. It was not deterred by previous failures, and engaged the project's originator, Myles Staunton, as a consultant.
Mr Staunton had convinced it of the venture's viability, having already built up business links with Norsk Hydro through his seaweed factory in Newport - Clew Bay Nova. In 1980, Mr Staunton had purchased 1,826 acres of bog near Bangor Erris to service his seaweed production. He needed only 50 acres of it, and decided to plan a separate project to produce briquettes from the bulk of the acreage.
He established links with Finland, one of the world leaders in peat harvesting, and financial projections were prepared.
Ironically, he benefited by an ill wind already blowing across the landscape. During the Lemass era, the Government had purchased thousands of acres of bog in Erris to support a grass-growing project, and in the early 1960s a company named Min Fheair Teo was set up in Muingmore, Geesala, to produce grass meal and grass cubes for cattle feed.
It was put into liquidation in 1982, and Udaras na Gaeltachta purchased the assets, based on Mr Staunton's proposal, to convert the factory to briquette production. The first phase was 100 per cent owned by the Staunton family. Grant-aid was subsequently given by the Udaras, the EU and by institutional investors including a Finnish concern. Bank loans of about £2.5 million were put in place.
Work on the factory was completed in 1987, and Peat Power Ltd (Fuinnimh Phortaigh Teo) was established. Nadcorp, on behalf of the Government, and the AIB group were the two largest investors, and Mr Staunton's stake was reduced to about 20 per cent.
After commissioning, a major problem developed in relation to moisture content in the briquette presses, and there was a fungus growth. Although Mr Staunton believed a solution could be found, the group got nervous and a receiver was appointed.
Undeterred, and still convinced of the viability of the project, Mr Staunton persuaded the North Connacht Farmers' Coop (NCF) and Borregaard of Norway, which specialises in binder manufacturing, to engage with him in a year's research and development, leasing the assets from the receiver. This research was very successful, according to Mr Staunton, and the moisture content problem was cracked.
However, the NCF decided not to continue, and so Mr Staunton approached several London-based Mayo businessmen. Despite more "positive" results, the project was not capitalised.
The Norsk Hydro interest appeared to be the most positive, with Thomas McDonogh of Galway taking a 30 per cent stake in the venture, known as Hydro Energi; and only three years ago, Udaras predicted that the project could have a "phenomenal" economic benefit for the area, hit by the closure of Asahi in Killala.
However, at that stage, Mr Staunton's contract was terminated by Norsk Hydro. He took a High Court action, which was settled out of court last year, and received a six-figure sum.
Mr Staunton was not the only person to feel aggrieved. Norsk Hydro pulled out of Muingmore altogether last year, with the loss of over 40 jobs, and several of the senior management sought professional advice.
A lack of experience with peat, including moisture content, harvesting methods, stockpiling and transport, was compounded by purchase of unsuitable equipment, according to former employees. ona was supplying the ESB power station at nearby Bellacorick with peat that had a maximum moisture content of 55 per cent, whereas Hydro Energi's content was over 65 per cent, and could not be adequately dried.
Enterprise Ireland expressed surprise at the Norsk Hydro withdrawal, and suggested that the move was premature.
"We tried very hard, having committed ourselves and having planned to do the work," Mr Tony Fox, Norsk Hydro's representative in Ireland, says. "Our management was very professional, the project was very ambitious, and we came to the conclusion that it was not workable."
Nevertheless, the Erris Action Committee believes that the technology and the market for the product make it imperative that the venture should go ahead. "This project has never been as close to success as it is now," Mr Seamus Cafferkey, chairman of the action group, says.
Mr John Carey, a former employee in the Min Fheair Teo factory, is one of many locals fully supportive of it also. "I believe the new factory will work if Bord na Mona peat presses are used. It is a pity that the Minister cannot see this."
Mr Michael Holmes, a member of the Irish Farmers' Association, is also angry. "Some £250 was paid per acre for adjacent land for a proposed national park. The 1,800 acres attached to this factory must then be worth almost £0.5 million, excluding the plant and building," he says.
"It was a bad mistake that the Udaras did not buy it last year. It is a disgrace that it let this out of its hands and into private ownership. It is a very poor commercial decision, regardless of what the plans are for Erris."
*Additional reporting by Liam McNally