CoalTown Pa is poised to sell its coal production assets to a new company.
It is to do so in a deal with King Coal, the company that operates a coal processing plant in Derry.
The coal production unit at the King Coal processing plant was previously owned by the State of Northern Ireland.
The sale is a step in the direction of an economic renaissance in Drogheda.
The King Coal unit in Dromore in County Londonderry has been owned by Drogleda County Council since 2005 and employs more than 50 people.
The company was founded by brothers Richard and Robert King, who bought the land on which the processing plant is situated in 1998.
It has produced over 3,000 tonnes of coal since its opening and produces coal for the local community.
It was the first coal-fired power station in Northern Ireland to be licensed in the 1970s.
The plant’s future is also being looked at by a new development company, which is set to build an office and offices on the site.
The firm, which will be named Greenhouse, is to be based in Drowndes Road in the town, near the railway line between the town and Londontown.
The Drogedean Borough Council is seeking permission from the Northern Ireland Secretary to proceed with a proposal to convert the site to residential accommodation.
The site has been vacant since the late 1980s, when it was the site of a steel mill.