Aurivo to invest €12 million in new green energy system at Ballaghaderreen plant

Aurivo Co-operative Society has announced a multimillion 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 cooperatives 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.

The Shared Island Sustainability Capital Grant is part of the Shared Island Enterprise Scheme delivered by InterTradeIreland, Invest Northern Ireland and Enterprise Ireland.

Speaking at the event Minister of State for Small Business, Retail and Employment Alan Dillon T.D, 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 multimillion 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.” 

Tom Cusack, Head of Food and Sustainability at Enterprise Ireland said, “A key goal for Enterprise Ireland is to support companies to make the transition to the low-carbon, resource-efficient economy of the future and innovative solutions like Aurivo’s wood pellet burner and boiler system supports this critical agenda. We are working with businesses across the country to support them to invest in green energy technologies to drive their competitiveness, productivity and sustainable growth. Today's announcement highlights Aurivo’s commitment to green energy practices and is a significant milestone achievement for the dairy processing industry as a whole. I would like to congratulate all at Aurivo and we look forward to supporting the team as they continue to address the decarbonisation challenge through innovation.” 

Paul Gunn, Head of Alternative Funding at Invest Northern Ireland said: “Aurivo’s investment is an important step in reducing carbon emissions while strengthening energy resilience across the all-Island dairy sector. By switching to renewable, locally sourced biomass, the business is cutting reliance on fossil fuels and strengthening regional supply chains. We’re pleased to be working with partners across the island through the Shared Island Sustainability Capital Grant to accelerate low carbon innovation that benefits industry and local communities.” 

Richard Kennedy, Chair at InterTradeIreland said, "InterTradeIreland welcomes this announcement from Aurivo Co-Operative Society, which represents a significant step forward in driving sustainable growth and accelerating green transitions. This investment also epitomises the positive impact of the Shared Island Sustainability Capital Grant and highlights how, through economic collaboration and innovation, we can strengthen the all-island economy.” 

This landmark installation positions Aurivo at the forefront of sustainable dairy processing in Ireland and reflects the Coop’s continued commitment to investing in innovative technologies that drive environmental progress while underpinning the prosperity of its members and the regions it serves.