Bord Gáis is set to invest up to €750m in expanding into the electricity and renewable energy market.

Chief Executive John Mullins told the Irish Times that the company was looking at "very significant investment" in renewable energy, mainly in developing wind power.

The state company, which operates Ireland's natural gas networks, supplying more than 500,000 homes, plans to construct several gas-fired electricity generating plants.

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It is currently working on a €400 million power plant in Cork, where it is based.

Bord Gáis is one of the parties in the running to buy two sites that fellow State company, ESB, is selling - at Tarbert in Kerry and Great Island in Wexford.

It is also interested in buying Marathon Oil's Irish businesses, including the Kinsale and Ballycotton gas fields and an 18 per cent interest in the Corrib field.

Adding that Bord Gáis was focused on becoming a broad-based energy supply company, Mr Mullins said: "What we're doing ties in with Government policy on both renewable energy and ensuring security of supply."

Along with Bord Gáis, Island Oil and Gas and Providence Resources are also interested in the Marathon assets.

Mr Mullins said that the money for investment is available now on the firm's balance sheet.

(VB/JM)