TAOISEACH BRIAN Cowen yesterday announced plans for the construction of a €40 million combined heat and power generating station at Rhode in Co Offaly.

Work on the plant is expected to begin early next year. Biotricity Ltd, the company behind the project, expects the plant to generate 200 jobs during construction phase and 65 full-time positions upon completion.

Biotricity’s planned 15-megawatt biomass facility will be powered by the supply of willow grown by Irish farmers.

It is designed to generate enough energy to meet the requirements of 5,000 homes. The facility will produce 120,000 tonnes of processed biofuel for the commercial energy market.

Mr Cowen described the Biotricity initiative as an “ambitious and worthy plan”.

“It is a shining example of the tangible benefits that the Smart Economy can bring.

“It is good news for the environment and it is good news for local jobs,” the Taoiseach added.

Biotricity managing director and former entrepreneur of the year Declan Kennedy said: “This is a milestone announcement for both Biotricity and Offaly. We are announcing the construction of a plant that will be powered by the sustainable supply of willow grown by Irish farmers on Irish land.

“The plant will support 200 construction jobs initially, and once operational, 65 jobs in running the plant.”

The Biotricity plant is adjacent to the old ESB power station that was decommissioned in 2002. Construction will commence early in 2011, and be completed and operational by the middle of 2012.

In September, Biotricity launched the first tranche of grower contracts to supply short rotation coppiced willow as feedstock for the new facility.

The contracts will pay a guaranteed price of €36 per tonne at 50 per cent moisture with 7- or 15-year term options. In addition, Biotricity will support farmers with financial support to meet the establishment costs of the crop.