A Northern Ireland manufacturing business has announced a major £9m investment in clean energy technology that will allow it to convert production waste into renewable power.

O&S Doors, based in County Tyrone, has installed a biomass-fuelled Combined Heat and Power (CHP) system at its Dungannon site, making it the first company on the island of Ireland to adopt this technology at scale.

Turning waste into renewable energy

The new system will transform MDF dust, a by-product of cabinet and door manufacturing, into energy that can be used directly within the business. Traditionally, this waste material would be transported off-site for processing elsewhere in Europe or sent to landfill.

By keeping the material on site and repurposing it as fuel, the CHP system will power both heating and manufacturing processes, significantly reducing waste transport and reliance on external energy sources.

Public funding and government support

The £9m investment has been co-funded through the Shared Island Sustainability Capital Grant Scheme, with £2.4m awarded in grant support. Northern Ireland’s First Minister visited the Dungannon facility to mark the announcement of the project.

Speaking at the site, she described the investment as a strong example of innovative, sustainable manufacturing, highlighting both its environmental and economic benefits.

She noted that the project demonstrates how green innovation and advanced manufacturing can work together, helping to position Northern Ireland as a leader in sustainable industrial development.

Boost for the manufacturing sector

Northern Ireland’s Deputy First Minister also attended the visit, describing O&S Doors as a success story within the local manufacturing sector.

She said investments in high-efficiency technology and greener ways of working are essential for driving productivity, supporting job creation and strengthening Northern Ireland’s reputation on the global economic stage.

The project forms part of the wider Shared Island Enterprise Scheme, delivered in partnership by InterTradeIreland, Invest Northern Ireland and Enterprise Ireland.

Supporting Net Zero ambitions

The Economy Minister praised the collaboration between the three enterprise agencies, saying the scheme will help businesses across the island invest in sustainable operations and innovative technologies.

She added that projects like this play a key role in supporting green growth while contributing towards long-term Net Zero commitments.

Environmental impact and energy savings

Once fully operational, the CHP system will burn more than 10,000 tonnes of MDF dust each year, generating approximately 1 megawatt of electricity.

This is expected to reduce carbon emissions from O&S Doors’ operations by around 1,500 tonnes annually, while also improving energy efficiency and reducing waste handling constraints within the manufacturing process.

Future-focused growth strategy

O&S Doors is one of the largest manufacturers of wooden doors, panels and accessories across the UK and Ireland, supplying more than 300 independent retailers alongside major brands such as B&Q and Magnet.

The company also exports to the United States and has outlined a clear commitment to achieving net-zero emissions by 2028 through electric vehicle adoption and zero-waste landfill operations.

Its chief executive said the CHP project is a central part of that ambition, helping the company reduce its dependence on purchased electricity while cutting emissions linked to off-site waste transport.

He added that the system will support future expansion at the Dungannon site by providing reliable, cost-effective renewable energy, while improving efficiency and productivity across the operation.

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