Contracts up for 120,000t of straw
Contracts for the purchase of 120,000t of straw annually are being offered to tillage farmers in the midlands.
The purchase agreements have been tabled by the energy company Biotricity who plan to develop a combined heat and power plant in Rhode, Co Offaly.
The 15mw facility will burn straw to produce electricity and use the heat from the process to dry biomass materials.
Briain Smyth, operations director with Biotricity, said the company aimed to begin building work on the site in the third quarter of this year and would be ready to start operations in 2013.
He said putting agreements in place to secure adequate supplies of straw was now a priority for the company.
He added that the company would take straw from growers within a 100-mile radius of the plant.
Talks have been ongoing between Biotricity and a team from the IFA's grain committee and it is understood that the framework of a deal is close to being agreed.