A UK-based businessman plans to construct a €120 million biofuel plant in the southeast of the country. It could employ up to 300 people when operational.

John Nicholas, the chief executive of start-up Fortypoint Seven, said that he has already received expressions of interest from a number of wealthy Irish individuals who may invest in the project.

Mr Nicholas, who is the former chief executive of AIM-listed Biofuels, met officials from the Irish Farmers' Association in Dublin this week. Their initial response to the facility was "very encouraging". Plans for the biofuel plant, which would produce butanol, would require a majority of the Irish farmers who formerly produced sugar beet for Greencore to begin growing the crop again.

Biofuels, which Mr Nicholas co-founded, constructed the largest biodiesel plant in Europe on a site near Newcastle-upon-Tyne.

Mr Nicholas said his proposed facility, which is likely to license technology from an oil major, would need as much sugar beet output as Greencore had required to feed its sites. If the plan comes to fruition, it could see as many as 3,500 farmers returning to sugar beet production.

The Irish sugar industry was left in disarray following the exit of Greencore from the business over the past two years. The company plans to spend €1.6 billion in redeveloping its two major sites at Carlow and Mallow into residential and commercial units, a decision that has proved controversial.

Fortypoint Seven may also consider inviting farmers to take a stake in its project, according to Mr Nicholas. He intends to appoint London-based boutique investment bank MacArthur this week to drum up financial support for the scheme, while an approach has been made to the IDA's London office to seek official backing.

The operation, which could be running within three years, would require a 10-acre site, according to Mr Nicholas, who has already identified a possible location.