Construction on the plant is set to begin next year.
Ireland's first Green Hydrogen Production Plant will be built in the midlands.
Bord na Móna have been granted planning permission by Offaly County Council for construction in Mount Lucas.
The Hydrogen Electrolysis Plant will produce over 200,000 kilograms of green hydrogen per year, which will be enough to replace over half a million litres of diesel every year.
The aim is to decarbonise sections of national transport, helping to meet Ireland's decarbonisation requirements and energy security needs.
Hydrogen is being viewed as a solution for industries where other energy solutions, such as electrification, is not possible.
Construction on the plant is set to begin next year, and it's expected to be operational by 2025.
Head of Renewable Energy at Bord Na Mona, John Reilly, says the development is "another step in expanding the company's range of climate solution projects."
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