The mixed solid fuel station will be constructed by Mayo Power Limited, a special project company jointly owned by Rockland Mayo Holding Company (an associate of Rockland Capital) and former local Fine Gael TD, Myles Staunton. The plant, fuelled by a combination of wood, peat and coal, will employ up to 160 during construction and will have a workforce of around 60 when it becomes operational. The local Bellacorick power station closed recently with the loss of 300 jobs.

The project's backers claim it will meet the demands of the recent government green paper promoting alternative energy solutions. It will use around 30% wood (locally sourced) and 35% peat, with the remaining fuel . . . coal . . .

imported through Sligo or Killybegs.

The proposed plant will utilise available wood from both state and private forests in the north west. In particular, the project will provide a major market for the thinnings from newly developed private forests. The facility will also be available to purchase wood from fast rotation crops available in the region. Peat will also be purchased at a level at least consistent with the previous production of Bord na Mona in north Mayo. Coal will complete the fuel mix.

Most power plants in Ireland are constructed in what is called a condensing mode which necessitates a cooling tower. The energy return on power generated in this manner is only 37% with the 'lost' 63% travelling through the cooling tower and ending up condensed to atmosphere.

"What you generate in the turbine generator before it goes up the cooling tower is steam. With oil and gas now so terribly expensive it is our judgement that there is now a potential to develop a market for steam, " says Myles Staunton.

Energy intensive companies . . . in other words manufacturing companies in the pharmaceutical industry . . . for whom energy is an important part of the cost equation are very likely to be interested in this development, " he claims.

"They would be very attracted to the location because the steam we will generate is no different to the processed steam currently generated inhouse from natural gas.

"So this power station could be the catalyst that leads to other industrial development at the Asahi estate.

"The quality of electrical power in Mayo at the moment is probably the worst in Ireland. They've had amber alerts all year . . . a warning signal that you're getting close to the bone as far as the possibility of power cuts is concerned. Right now, if a decent size company planning to employ say, three or four hundred workers wanted to locate in Mayo, the power issue would be a crucial factor to consider. In the end, they probably wouldn't be encouraged to look at the county at all."

Rockland Capital's investment in Mayo Power is backed by Weichert Enterprise, a US privately owned fund which is managed by Gerard C Crotty.

Crotty is second-generation Irish and was a founding member of the US Trade and Investment Centre in Brussels and served the governor of New York, in a number of roles, between 1979 and 1991. Since its inception, Rockland has invested in 3,500 mega watts of generation capacity. The west of Ireland plant will generate 100 MW . . . enough energy to power all of Mayo and Sligo.

Welcoming the project, local Fianna Fail general election candidate Dara Calleary said:

"It is essential that the promoters continue to consult widely with the local community in Killala during this preplanning stage and try to deal with any concerns that may be there."

The plant should . . . subject to the granting of planning permission . . . be operational by the beginning of 2010.