Limerick waste-to-energy firm sues heat exchange system supplier
A Limerick firm which provides heating units for converting poultry manure to energy is suing a Dutch company for €3.6m over alleged defects in heat exchange systems it was supplied.
Biomass Heating Solutions Ltd (BHSL) of Kantoher Business Park, Co Limerick, claims it was put to additional expense and loss of profits totalling €3.6m as a result of having to repair the defects in equipment supplied by Geurts International BV of Leiden, Netherlands.
BHSL bought heat exchange systems from Geurts which were then incorporated into BHSL units supplied to UK poultry farmers. They work by burning poultry manure which is turned into hot water or steam which is then used to heat the farm or, secondarily, to produce electricity.
Defects in the Geurts heat exchange systems became apparent around December 2016, BHSL says. It says it spent €2.6m on repairing those defects including the use of third party contractors, additional or replacement parts, staff costs and customer claims against BHSL. It estimates it lost another €1m in profits.
It also says Geurts brought a claim against BHSL in the Netherlands for payment of just over €1m for money it said it was owed by the Irish firm.
BHS denied it owed anything and challenged the jurisdiction of the Dutch courts to deal with the matter. Last May, BHSL says, the Court of the Hague declined to allow it to be dealt with in the Netherlands jurisdiction.
Following that decision, BHSL brought Commercial Court proceedings here against Gueurts over the alleged €3.6m losses and expenses. The case was admitted on consent to the commercial list by Mr Justice Robert Haughton and adjourned on the basis of agreed directions for progressing the case.
