The decision's been welcomed by environmental groups, while others argue it will lead to increased fuel poverty.
The decision comes after the company suspending operations last year.
It says it will continue to progress the Brown to Green strategy - which are of critical importance to Ireland achieving its renewable energy targets.
Bord na Mona says it will continue to fulfil orders of horticultural peat into this year.
Its peat briquettes will still be made until 2024 - that will happen at its Derrinlough factory in County Offaly.
But there are fears that after this, some people may not be able to afford to heat their homes.
Today's announcement by Bord Na Mona has no impact on jobs.
The harvesting employees have already switched into rehabilitation roles.