It's part of a bigger budget concession for the midlands and neighbouring counties.
Three million euro is to be split between Offaly and Longford to offset the loss of their power stations.
It's part of a Just Transition fund that will distribute 34 million euro across the midlands and surrounding counties.
22 million is designated for the Bord na Móna Peatlands Rehabilitation Scheme, aiming to create jobs, enhance biodiversity and protect the storage of carbon emissions.
Offaly councilor John Clendennen says while the funding is welcome, long-term planning is needed:
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