One of our new wood pelleting plant project set up in Italy. It is a automatic production line for making pellets from chestnut wood. The output is 2~3 ton per hour. This project was designed to run 24 hour a day, except the drying section (The drying section run 8 hours a day). The pelleting plant equipment cost is around 300,000$.
View the following photos to know more about the project in Italy. If you are interested to get more details of the pelleting business plan, you are welcome to get in touch with us (email@example.com)!
2 Sets of Ring Die Wood Pelleting Machine
Automatic Control System
Wood Crushing and Dedusting Machinery
Chestnut Wood Pellets
The world is going green. A nice way to join the movement is creating a wood pellet factory. Wood pellet unlike coal or gas costs less and emits less carbon dioxide to the environment. As an entrepreneur looking to start a plant producing the pellets, the question on your mind is cost. Two main things are responsible for the cost, the right machines, and raw materials. (Related Article: 7 Steps of Complete Wood Pellet Production Process)
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Two types of materials can be used to produce wood Pellets; recycled wood, and virgin fiber.
Raw materials with high moisture content are expensive to process. Before buying raw material it is prudent to ensure the moisture content is around 50 percent. Recovered wood usually has a low water content is easy to process. Virgin fiber by default has high water content. If you are using virgin fiber a moisture content of up to 60 percent is allowed. Remember to adjust the acquisition cost to cater for the extra drying cost that comes with high moisture raw materials.
Once you have factored all these costs, calculating the cost of acquiring raw materials can be easily predicted.
Though not major, these small expenses affect price significantly. Pellet processing is a power intensive process. You require about 10 dollars worth of power for every 10 tons of final product you produce. This cost can vary significantly if you have an alternative source of energy to complement the national grid supply.
Proper maintenance of machines is important in avoiding disruptions in production. An average cost of five dollars per ton is enough for this. In large scale operations, loading and transporting using the rail costs up to 2million dollars.
Some costs vary with location. Labor in Europe is at around 15 dollars per ton. In the USA and Canada, it is lower at around 10 dollars per ton. It is proper to find out the minimum wage in the area you will build the wood pellet mill, to get an accurate estimate. Capital is another variable cost. It ranges anywhere between 125 and 250 dollars per ton. For capital, you will find more favorable pricing from your bank once you have established the business. (Related Article: How to Start a Wood Pellet Production Line?)
The cost of starting a pellet manufacturing business is important in planning. In a wood pellet business factors both easy and hard to predict exist. Input factors such as electricity and raw materials can easily be calculated. On the other hand, capital, labor and storage cost can only be calculated by considering the location of the business.