How to Start a Wood Pellet Business and Calculate the Cost. Part 2
In this article, we will talk about how to start a wood pellet business. First, we will make a brief about the development prospect of pellet business. Second we will talk about the application and advantages of pellets. Then we will know something about the market price about wood pellets. From this, if you are intended to join the game, you may have a general view of this business. This will make the first part of the how to start a wood pellet business. In the second part, we will talk about the question concerned mostly by people who want to try this business, which is how much will it cost to start this business, how to calculate the cost and how to get an overview of the profit in accordance with the target market price.
Quality pellets features
We always talk about the word "quality pellets", but what are quality pellets, how to distinguish quality pellets from the not so quality ones? In fact, there are some standards.
| Items | index |
|---|---|
| Heat value | > 4000Kcal/kg |
| Density | > 1.1t/m3 |
| Appearance | Faint yellow, cylindrical, 6mm. |
| Ash content | <= 1.1% |
| Moisture | <= 8% |
| Combustion ratio | >=95% |
| Heat efficiency | >=81% |
| Salinger level | < 1 |
| Smoke-density | <= 80mg/m3 |
Pellet making equipment
Biomass raw materials contains cellulose, hemicellulose and lignin. Because of their low density and loose structure, biomass materials are easy to be formed by external force. In the wood pellet mill or wood pellet plant, the biomass raw materials will experienced the process of rearrangement, mechanical deformation and plastic deformation. The nonelastic molecule and viscoelastic molecule of the cellulose twisted with each other in the process, then the materials become smaller and high density pellets.
To start a pellet business, only a small pellet mill is not enough. You certainly need more pellet making equipment to adapt mass production. There are some recommend equipment you may find necessary.
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Bucket elevator
There should be conveyors in your project. The conveyor will be set at the entrance and the exit of the pellet plant. According to the material, we can choose bucket elevator. It has the advantages of small footprint, high hoisting height and compact structure and good sealing. You may find that there are no bucket elevator at this website, but in fact, we can offer this machine. The reason why there are no bucket elevator in the products column is that, I haven't put them on, the web is newly established, how can I put all the products in such short time. But if you need one, leave us messages, we can send you the quotation and details ASAP. -
Counterflow cooler
The pellets squeezed out from the pellet machine, is about 55-65 ℃. Before packing, the pellets must be cooled or they may broke. The counterflow cooler can generate cold wind and take away the heat evenly.
Wood pellet business profit analysis
We name a straw pellet production line with an annual production of 5000t as an example. The price will be in Henan, China. If you are in other country, you can calculate the cost in the same way, just change the number.
| cost | material | 135 yuan/t |
|---|---|---|
| Crushing | 22 kwh*0.8yuan 16 yuan/t | |
| Labor (2 person) | 30 yuan/8h 15 yuan/t | |
| Pelletizing | 70kwh/t*0.8 yuan 56yuan/t | |
| Wearing parts | 30 yuan/t | |
| Labor (5 person) | 30 yuan/8h 25 yuan/t | |
| Packing (25 kg/pack) | 40 yuan/t | |
| Depreciation of equipment | 6.25 yuan/t | |
| Selling | 5 yuan/t | |
| Management | 5 yuan/t | |
| Other | 8 yuan/t | |
| Total | 342.89 yuan/t | |
| Price | 430 yuan/t | |
| Profit | 87.15 yuan/t | |
| Annual profit | 436,000 yuan |
As we can see, wood pellet business can bring in. If you have better ways to get low price material, the profit could be more. But to start a wood pellet business, a wood pellet plant is essential. GEMCO offer wood pellet mills and plants for household and industry mass production. Send us messages for quotation and details. Start your wood pellet business today!
