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Coillte and ESB launched a €1 billion joint venture that aims to build enough wind farms to supply 500,000 homes with electricity by 2030.
Dubbed “Futurenergy”, the new company will build wind farms on Coillte’s land with the capacity to generate up to 1,000 mega watts (1 giga watt) of electricity.
State forestry company Coillte and energy group ESB have been planning the project since early 2019.
Coillte chief executive Imelda Hurley described the news as a significant milestone for the company.
“It sees our entire renewable energy business transfer into the new joint venture company, which aims to deliver 1 giga watt of renewable energy projects by 2030,” she said.
ESB chief executive Paddy Hayes added that Futurenergy built on a history of successful partnerships with Coillte.
Futurenergy chief executive, Peter Lynch, predicted that the new company would become a industry leader.
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Coillte and ESB will each hold a 50 per cent share in the new business, which will be a separate company from its shareholders.
The company calculates that by 2030 its wind farms will generate enough electricity to supply 500,000 homes.
Ultimately the partnership could build 20 to 30 of these generating plants at a total cost of €1 billion.
Most of its projects are either preparing to seek planning permission or are awaiting decisions.
Earlier this year, mergers watchdog, the Competition and Consumer Protection Commission allowed the deal on condition that the pair put measures in place to prevent themselves from sharing commercially sensitive information with each other.