Planning permission has been secured for Limerick facility. Construction will begin in March and the plant is due to come on stream "towards the end of the third quarter", according to Buckley.

Last year Greyhound opened a Euro15m recycling plant in Clondalkin, in west Dublin.

The new waste-derived fuel plant represents the second phase of that plant's development. The plant, based on patented technology Greyhound has developed in conjunction with Queen's University, will produce a fuel that can be used to power diesel engines without modification.

Greyhound recently secured tax relief under the government's mineral oil tax scheme which will enable it to produce and sell up to 22m litres of fuel over the next four years without incurring excise duty.

Buckley said Greyhound the new infrastructural investments will be financed by a combination of the company's own cash reserves and bank debt. "We had a great year last year with 30% year-on-year growth, " he said. Greyhound saw turnover rise to Euro31m last year, up from Euro23.5m in 2005, and produced a net profit of Euro2m according to Buckley.

The company has signed a number of significant deals in the past 12 months including a Euro6m contract with the Department of Defence.