Aurivo invests US$13.92M in pioneering wood pellet energy system

IRELAND – Aurivo Co-operative Society has announced a US$13.92 million (€12 million) investment in a first-of-its-kind wood pellet burner and boiler system at its dairy ingredients facility in Ballaghaderreen.

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 significant portion of the fossil fuel currently consumed on-site.

Fueled by locally supplied, sustainably certified wood pellets, Aurivo has said that 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 company said it reinforces Aurivo’s cooperative ethos, delivering long-term value not only for its farmer members and customers, but also for the wider rural economy.

The biomass system is also expected to provide significantly greater energy cost certainty.

Moving away from imported fossil fuels towards a stable, renewable certified fuel source is expected to protect the business from the volatility that has marked global energy markets in recent years.

According to Aurivo, the project will also support local employment across the construction, engineering and supply chain.

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

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.

The investment comes after Aurivo and Dale Farm, two of Ireland’s biggest dairy co-operatives, decided against pursuing a merger that would have created an Irish Sea-straddling group, with a total milk pool of around 1.5 billion litres.

Both companies will instead work together on some strategic projects, led by a steering group with representatives from both co-operatives.

A group of Aurivo suppliers argued that the merger with Dale Farm, which is headquartered in Northern Ireland, would result in a permanent loss of regional control.

Established in 1972 as the North Connacht Farmers’ Co-operative Society, Aurivo had a total milk pool of 516 million litres in 2024 and reported revenues of more than €725 million, up by almost 14 per cent from 2023.

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