How to Start a Wood Pellet Business and Calculate the Cost. Part 1

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.

Wood pellet business development prospect

Energy problem has become one of the decisive factors that affect social and economic development. Solving the energy problem solved the dynamic problem of economic development. Today, the world's conventional energy supply has seriously affected the rapid development of social economy. The large-scale use of fossil energy, releasing large quantities of carbon dioxide, sulfur dioxide, nitrogen oxides and other substances, has caused the harm to human living environment. Many countries have enacted environmental protection laws and set strict environmental standards. For example, China's renewable energy law.

To protect the environment, we need to reduce the use of fossil fuels, in other words, to strengthen the development of renewable energy technologies. The development of biomass energy can both supplement the shortage of conventional energy and also have significant environmental benefits. Compared with other biomass energy technology, biomass pellet fuel technologies are easier to implement mass production, the convenience of using biomass pellet mill can be comparable to using gas, fuel and other energy. Therefore, the pellet business is in line with the development trend of the world and has good economic and social benefits, which makes pellet mills your essential choice.

Wood pellet market price

The small packaged retail price of wood pellets in the U.S. market is $170 / ton, and the large package price is about $135 / ton. The delivery price in Sweden is $150 / ton. The bulk of the wood pellets are priced at $80 / ton fob Amsterdam. Pellet fuel market in China has not fully developed. Dalian wood pellets retail price is RMB 650-750 yuan/ton, crop straw pellets retail price is RMB 430-500 yuan/ton, in the Beijing area is about 550 yuan/ton.

Wood pellet application and advantages

Pellet fuel is made of wood by pellet mill or pellet machine. materials are squeezed between the die and roller under normal temperature. The density of material is usually around 130kg/m3, after the shaping process, the density will be greater than 1100kg/m3. Pellets are convenient for installing and transporting. At the same time, the burning performance is improved greatly.
So what is the application of pellet fuel.

• It can be used for home heating, and household energy consumption. It has the advantage of  high energy efficiency and easy to storage.
• Biomass industrial boiler. Pellets can be the main fuel for biomass industrial boiler instead of the coal, which can make contribution to the environment protection.
• Electricity generation. It can be used as the fuel for the thermal power plants.

GEMCO provide quality pellet mills as will as free consultation online. If you want start a wood pellet business, GEMCO can be your faithful partner. We can customize your whole wood pellet production line and send our professional staff to train your team, until your works can control the wood pellet line expertly. Please check our products for more information about our pellet mill machines, and leave message for quotation and details. Contact us today!