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Ready to invest in wood pellet manufacturing

By Jack Huang    Nov 12, 2013

The growing fossil fuel prices, the requiring for energy security and the urging to cut down carbon emissions internationally have prompted the conversion from fossil fuel to renewable fuels, including biomass. In the regard, European Union has been leading the way, which has the intention of generating 20 percent of its energy from renewable by 2020. With various policy incentives, the investment in renewable business, such as wood pellet manufacturing has come into a new rage. However, there are some things should be known before starting up.

When developing a biomass pellet business, the following things should be considered with top priorities.Are you ready to invest in wood pellet producing

1. Biomass feed stocks

As for the biomass raw materials, the questions need to be considerate beforehand, such as the materials quality and composition, including the incoming moisture content, feed stock source and price, etc, which are directly influence the production cost and future profit because biomass materials determine the production scale, processing equipment and procedures, and the quality of the pellet products. And it‘s preferred to have local woodlot owners or other biomass resources owners such as wood processing factory, farms, furniture processing factory, etc to be your long term suppliers which will ensure your production stability.

2. Investment Capital

Besides the feed stock source, the investment capital is another decisive factor can influence the production scale of your pellet line. The investment capital determines your choices of wood pellet mill plants.

Generally speaking, the biomass pellet production including the following procedures, i.e. shredding or hammering, drying if the incoming moisture content is over 15%, pelletizing, cooling and screening, conveying and packaging. Therefore, hammer mill, dryer, wood pellet mill, cooler, screener or siever, conveyer, and packaging machine are needed for average wood pellet production line. As the core of the production line, wood pellet mills can be categorized differently according to different benchmarks. According to molding technology, there are flat die and ring die wood pellet mills. In terms of power, the wood pellet mill can be classified into electric, PTO and gasoline wood pellet mill. According to production scale, there are large, medium, and small mills. Since there are various choices, you can choose the most suitable one according to your situation.

3. Biomass fuel market

Biomass fuel market is one of the most important things for biomass pellet manufacturers. Before start your own pellet business, you have to know what your target market is, the energy pellets for industrials and households or bedding pellets for animals? And a research study is needed to know your target market, such as the information on market location, potential consumers, the present pellet productivity and potential pellet consumption volumes, the wholesale and retail price, etc, to help you to plan your pellet business.

Well, if you have adequate biomass feed stocks supplying, certain invest capital supporting, and promising pellet market in front, you are welcomed to enter the pellet business! Have you been ready to invest in wood pellet manufacturing business?