Limerick-based BHSL grows its manure-to-energy business

BHSL's Fluidised Bed Combustion system converts untreated poultry manure into energy for heating, cooling and electricity generation

Brothers Jack and Declan O’Connor, founders of BHSL at the company's headquarters in Ballagh, County Limerick.

Limerick-headquartered agritech company BHSL, which converts chicken manure into energy, has received growth investment from Beechbrook Captial.

This latest raise of cash could be used for more acquisitions by BHSL as last year it acquired Glan Agua, a water treatment business, for an estimated €10m. It also bought Glanway, a Waterford-based waste processor in 2018.

“BHSL was the first company in Ireland supported by Beechbrook Capital when we acquired a majority holding in the waste processing company Glanway at Waterford port in 2018,” said BHSL chairman Denis Brosnan who was previously chief executive of Kerry Group.

“We have had a wonderful working relationship with both its Irish and UK directors and management from the outset and their continued financial support and advice in the acquisition of Glan Agua has been crucial in the BHSL growth story,” said Mr Brosnan.

Last year, Brosnan stated that with these acquisitions he is expecting sales to reach between €120m to €130m this year and estimates his group will make around €500m in sales over the next five years.

CLIMATE & SUSTAINABILITY HUB

BHSL developed a patented system called Fluidised Bed Combustion (FBC) to convert untreated poultry manure into energy for heating, cooling and electricity generation to meet the energy needs of the farms.

FBC aims to provide poultry farmers with cost-effective energy which drives production efficiency and improves bird welfare. BHSL claims the system attracts green subsidies and low-cost green finance which, on top of fuel savings and improved production practices, enables farmers to save and make more money.

European private debt house Beechbrook Capital did not disclose how much it invested into the environmental engineering company. Beechbrook Capital is a specialist fund manager providing debt, or debt and equity, capital to small and medium-sized businesses in northern Europe. The business was established in 2008 and has offices in London, Manchester, Birmingham, Frankfurt, Cork, and Dublin.

“We continue to enjoy a strong relationship with BHSL Group’s board and management team and look forward to working with them in the pursuit of their significantly broad and deep ambition for the group in the coming years,” said Beechbrook’s David Merriman.

“We have enjoyed an excellent relationship with BHSL Group since supporting the group with its Glanway acquisition in 2018, and we are delighted to support the group on its next phase following its Glan Agua Group acquisition,” added Mr Merriman.