Biofuels are the hot topic of the moment. Two twentysomething Irish Entrepreneurs are determined to grow the fire. In our eight series Maree Morrissey talks to Briain Smyth and Stuart Dowzer founders of Irish Pellets, about their business' crux at present.
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| Briain Smyth and Stuart Dowzer of Irish Pellets | ||
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BACKGROUND
Irish Pellets is a new Irish company serving the home energy market and providing an Irish produced home heating fuel that is 100% 'green.' Irish Pellets is currently the only indigenous producer and supplier of Irish wood pellets and wood briquettes. An entrepreneurial firm, Irish Pellets was started to provide an Irish produced product to replace an imported one. The company was founded by 28 year old Briain Smyth following his family's extensive efforts to secure a reliable source of Grade 1 wood pellets to fuel the home heating system. Trying to secure a reliable source brought Briain from Westmeath to Limerick to Canada and back. The result was a product that cost twice what it would if produced in Ireland and the source was not constant. Briain had met with codirector Stuart Dowzer through mutual associates and in conversation they learned that both were interested in the area of renewable energy.
Twenty-eight year old Stuart had been looking at the area of biodiesel at the time, however after a number of meetings and further investigation, Briain and Stuart realised the timing was right to launch the wood pellet side of the business.
With the announcement in the December 2005 budget of the allocation of €65 million over the period 2006 to 2010 to, launch several innovative grant schemes relating to biofuels, combined heat and power, biomass commercial heaters and domestic renewable heat grants, and an indicative allocation of €22 million for a Bioheat Boiler Deployment Programme, Smyth and Dowzer decided to strike while the iron was hot and formed Biofuel Manufacturing Ltd, trading as Irish Pellets. Their headquarters are in Ashbourne, Co. Meath and the Irish Pellet Plant is currently under construction in Clara, Co. Offaly.
CURRENT STATUS
Wood pellets have been used as a highly efficient and carbon neutral source of energy produced from renewable and sustainable sources for over 30 years. Currently wood pellets are imported into Ireland from sources as diverse as Canada to Russia. Much of the imported product is also 'Grade 2' or lower in quality and is completely unsuitable for most domestic burners.
Irish Pellets produce a 'Grade 1' guaranteed Irish product from this year and will supply homes all over the country with the hugely efficient Irish Pellets wood pellets.
The company is now 14 months in existence and officially trading since March of this year. The 17,000 Square foot, state of the art plant in Clara, Offaly will be complete by the end of this year. In the meantime, Smyth and Dowzer have sourced an Irish company to manufacture product to Irish Pellets specifications and the orders and enquiries are flying in. Throughout Ireland, 104 distributors have been brought on board to meet the constant increase in demand.
FINANCING
Having identified the market gap the two fast thinking entrepreneurs secured private investment for this multi-million euro project.
EXPANSION
Wood pellet burning stoves have been sold in huge quantities around the globe over the past number of years. For example, in the US between October and December 2005 in excess of 70,000 wood pellet burning stoves were sold in the Mid-Western States alone.
In the UK usage of wood pellets has increased from zero just a few years ago to 250,000 tonnes. In Wales the Drax coal burning power station is adapting its systems to enable it to use wood pellets for 30% of its fuel requirements. Germany has seen its wood pellet usage grow by 100% in the past year. In Ireland 795 wood pellet boilers were installed the first quarter of 2006.
The Irish Pellets plant will be at full capacity within 18 months of opening and will produce 90,000 tonnes of Grade 1 Pellets per annum. Biofuel Manufacturing Ltd has plans to expand into other renewable fuels over the next number of years.
THE CRUX OF THE MATTER
The bottom line is to try to stick to the business plan. As entrepreneurs from a very early age, both Smyth and Dowzer have learned that the action plan is only sound if the actions are enacted immediately. They stress their motto that time waits for no one and as astute businessmen they insist on meticulous and instant follow-through.
FUTURE PLANS
The response to the arrival of Irish Pellets to the Irish market has been phenomenal to date and the company plans to continue to grow and manufacture Grade 1 guaranteed Irish product. Judging by international trends, wood pellets will shortly become the fuel of the future in Ireland with value and performance factors as well as increasing environmental regulations positioning pellets as the logical choice of fuel.
Irish Pellets and briquettes are cleaner and more efficient than traditional energy sources and fossil fuels. Raw materials are sourced from 100% renewable sources and packaging is fully biodegradable. In value terms, Irish Pellets product will be produced using the most efficient technology resulting in a product that delivers greater fuel efficiency at a lower price when compared to traditional fossil fuels.
