Officials from the customs and revenue service have raided a large diesel-laundering plant near Portarlington, Co Laois.
The operation began at dawn this morning when customs officers entered a warehouse near the town.
Inside they found a large diesel washing operation, which they believe is capable of laundering up to 100,000 litres a week.
One man is being questioned about the discovery, while around 20,000 litres of washed and unwashed diesel have also been recovered.