Work on the construction of a €180 million power station in north Mayo has been suspended.
The Mayo Renewable Power project involves the building of a biomass fuel processing facility at the former Asahi site in Killala.
In a statement this afternoon, MRP said it had issued a suspension notice to its main contractor, due to an inability to secure further finance for the project.
Last October, the Taoiseach turned the sod on the development.
Enda Kenny described the investment as "a vote of confidence in the Irish economy".
Around 350 construction jobs were promised during the development phase.
The company today said its US backers had already spent €90m on the project and that this was beyond the equity already committed.
Mayo Renewable Power says it hopes to be able to review its options so it will be in a position to complete work on the site.
The development was also being backed by a number of banks and was due to be operational by 2017.
It is still seen as a viable project, should further funding be secured.
It is understood that the site will be secured in the coming days.
It was envisaged that the power station would use locally sourced wood along with imported supplies.
Electricity produced there would be exported onto the National Grid.
The project would also assist with Irish efforts to meet international renewable energy commitments.
Local Fianna Fail TD, Dara Calleary has called on the Taoiseach to intervene personally, given the significance of the project from both employment and infrastructural perspectives.
Mr Calleary said Enda Kenny should lead an effort to give whatever assistance was necessary to get the project back on track.
Mayo County Council has described the developments as unfortunate.
The local authority has been working with the promoters of the power plant for the last decade and says it will continue to support efforts to bring it to fruition.
