Aurivo to invest €12m. in wood pellet burner system at Ballagh' facility

AURIVO Co-operative Society has announced a multi-million investment in a first of its kind wood pellet burner and boiler system at its dairy ingredients facility in Ballaghaderreen, marking a significant milestone in the cooperative's decarbonisation journey.

The investment is co-funded by the Shared Island Sustainability Capital Grant Scheme delivered by Enterprise Ireland, InterTradeIreland and Invest Northern Ireland.

Once operational, the new boiler system will expand the facility’s use of renewable biomass and replace a large proportion of the fossil fuel currently consumed onsite.

The investment is expected to reduce carbon emissions by approximately 7,500 tonnes of CO₂ annually, representing a major step forward in Aurivo’s sustainability commitments and supporting Ireland’s broader transition to a low carbon economy.

Fueled by locally supplied, sustainably certified wood pellets, the new energy infrastructure will help anchor more economic value within the all-Island supply chain while supporting indigenous industry. By prioritising regional sourcing, the project reinforces Aurivo’s cooperative ethos, delivering long term value not only for its farmer members and customers, but also for the wider rural economy.

Beyond its environmental benefits, the biomass system will provide significantly greater energy cost certainty. Moving away from imported fossil fuels towards a stable, renewable certified fuel source will protect the business from the volatility that has characterised global energy markets in recent years, enhancing the long-term competitiveness of Aurivo’s dairy operations.

The project will also support local employment across the construction, engineering and supply chain, demonstrating how climate focused investment can deliver tangible economic dividends for regional communities while futureproofing critical food manufacturing infrastructure.

Speaking at the event, Minister of State for Small Business, Retail and Employment, Alan Dillon, said: “Delivered through the Shared Island Sustainability Capital Grant Scheme, this investment by Aurivo highlights the impact of strategic partnership in accelerating industrial climate action while strengthening regional economic resilience. Today’s announcement demonstrates what can be achieved when industry and State partners work together with ambition.

“Just as importantly, sourcing sustainably certified biomass ensures that more of the economic benefit remains here within the local economy, supporting jobs and regional enterprise. Congratulations to Aurivo leading the way with technology of this scale and ambition and I wish them every success.”

Donal Tierney, CEO, Aurivo Co-operative Society, said: “This multi-million investment represents a transformative step in reducing the carbon footprint of our dairy ingredients facility while strengthening the long-term resilience of our operations.

“As a cooperative, sustainability is central to how we create enduring value for our members, customers and communities. By significantly increasing our use of renewable biomass and reducing reliance on imported fossil fuels, we are taking decisive action that will deliver measurable emissions reductions while providing greater certainty around our future energy costs.

“We are very grateful for the support of Enterprise Ireland, InterTradeIreland and Invest Northern Ireland through the Shared Island Sustainability Capital Grant Scheme. This project would not have been possible without that collaboration.”