BMC Moerdijk is powering the Dutch grid with resilience
Only a few companies in the world do exactly what Netherlands-based BMC Moerdijk does: It incinerates poultry manure—thousands of tons of it every week—to generate electricity. It also turns the leftover materials into phosphorus-rich ash.
BMC Moerdijk supports a lot of people in the food and energy industries. Poultry farmers have a cost-effective way to get rid of their manure, while other farms benefit from high-quality fertilizer for crops like cereals, potatoes, corn and sugar beets. The Dutch grid reaps the rewards, too—BMC generates enough electricity to power the 400 poultry farms that BMC Moerdijk services, plus another 45,000 homes. It does this 24/7 on a single production line, all while emitting less carbon than coal or natural gas.
For BMC Moerdijk and the poultry farmers who own a stake in the company, downtime is not an option. “The farmers’ production schemes are very tight,” said BMC Moerdijk CEO Gerd-Jan de Leeuw. “And we are part of that solution for them.”
That commitment to resilience is why BMC Moerdijk partnered with FM in 2019. By addressing human element recommendations and mitigating fire risks, the company transformed its risk profile, rising from the bottom quarter to the top quarter in just 18 months. In November 2020, BMC Moerdijk received an award from FM for best-in-class risk.
“They need to be best in class, because if something were to happen to the generating unit, they would be out of business for a long time,” said Linda Pappot, the FM account manager for BMC Moerdijk.
Still, for even the most resilient of businesses, things can go afoul.
For example, in May 2023, BMC noticed high vibration levels coming from the rotor of the turbine generator. The subsequent investigation determined that metal particles from a blown-up oil filter were distributed through the generator, damaging various components in the machine.
At BMC, Chief Operating Officer Luc Westdorp’s technical expertise complements CEO De Leeuw’s financial savvy, and they both came in handy as they worked alongside FM to determine if repairing or replacing the rotor was the better solution.
In the short term, sending the rotor away for repairs was cheaper than buying a new one. But it would also extend the downtime of the turbine generator to at least 60 days.
BMC Moerdijk has binding contracts with poultry farmers to manage their manure. Even if production goes down, BMC would still have to accept and store the litter—an expense that could considerably erode BMC’s cashflow. Additionally, while the rotor would be out for repairs, BMC would lose revenue from electricity generation and ash sales.
Opting for a brand-new rotor, though more expensive upfront, offered a crucial advantage. Temporary fixes would allow production to continue while awaiting the new rotor’s arrival. The cost analysis was clear: Replacing the rotor on site during a 21-day period would reduce the net combined loss by nearly €1.2 million.
FM and its expert consultant analyzed the facts and agreed with BMC’s conclusion. That wasn’t surprising: BMC’s Westdorp has strong opinions that he backs up with strong expertise.
“He really knows what he’s doing,” remarked Hans Stooker, FM’s claims adjuster.
Westdorp was happy with FM’s transparent and quick claims process, which gave BMC the flexibility and financial certainty to get back to the job at hand.
“I was very enthusiastic about the whole process,” Westdorp said.
The enthusiasm was mutual. Toon Van Diemen, FM’s account engineer, recalls going out to BMC to do a loss visit after the incident. He was expecting to make recommendations for improvements. By the time he got there, BMC already had a plan, which FM fully endorsed.
“When they’re convinced something is an exposure, they are proactive on developing a solution and reviewing it with us to implement it as soon as possible,” Van Diemen said.
This success story also involved a broker partner. As a professional and experienced insurance advisor, Vanbreda Risk & Benefits supported BMC Moerdijk where needed in the process of reaching an optimal solution for all parties involved.
Today, BMC Moerdijk is back up to speed, with its brand-new rotor ready to help process a third of the poultry manure produced in the Netherlands every year and avoid carbon emissions by producing green electricity.
“We've been true partners since 2019 and have focused on loss prevention," De Leeuw said. "But now that we have encountered a loss, we have also experienced the FM claims process. And we can show our shareholders how well the partnership works for all parties.”