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A good average to consider when building a Green Pellet Plant from start to finish is approximately 1.2 to 2 million dollars per desired ton per hour. Example: You want to build a 6 ton per hour plant. The cost of construction and equipment will come in somewhere between 7.2 and 12 million dollars.After comparing with many fuel options, wood pellets are a little expensive than wood, sawdust etc. But as for other fuel options such as oil, natural gas or electricity, it is much cheaper.Cost of pelletizing equipment: $3-4 million (Complete wood pellet plant machinery includes crushing machine, drying machine, pellet mill machine, pellet cooling and packaging machine, etc).
Contents
Is it cost effective to make your own wood pellets?
After comparing with many fuel options, wood pellets are a little expensive than wood, sawdust etc. But as for other fuel options such as oil, natural gas or electricity, it is much cheaper.
How much is a wood pellet making machine?
Cost of pelletizing equipment: $3-4 million (Complete wood pellet plant machinery includes crushing machine, drying machine, pellet mill machine, pellet cooling and packaging machine, etc).
How do I start a wood pellet business?
In brief, to start a wood pellet business, you need to have stable supply of biomass materials, you should own or rent enough place to build a wood pellet workshop, and you need a complete set of wood pellet production equipment.
How much is a 40 lb bag of pellets for a pellet stove?
A: A pallet of pellets is comprised of fifty, 40 pound bags (which equals one ton). The price is $269 a pallet or $5.38 per 40 lb bag. Helpful?
How much sawdust makes a ton of pellets?
The production of 1 ton pellets needs the about 7 bulk m³ sawdust with the moisture content around 50-55%. The optimum moisture content of the sawdust is 10-15%. The sawdust with higher moisture content should be dried before entering the sawdust pellet machine while the lower one can skip the procedure.
Can you make wood pellets without a mill?
Most pellets are made in bulk by industrial pellet mills, but homeowners and small businesses can also turn organic materials into wood pellets. You can make your own pellets at home by breaking raw wood matter into small pieces and pressing the wood into dense pellets.
How much do wood pellets sell for?
Wood pellets cost an average of $5 per 40 pound bag. Pellet bags can range from $4 to $9.
Can you make wood pellets from pallets?
To make our wood pellets, Energy Pellets of America: Finds retired, untreated shipping pallets that are broken and no longer useful in the shipping industry. Breaks the pallets down into fine particles at our pellet plant by using a grinder and hammer mill. This turns the wood chips into a “sawdust” like material.
Are pellet mills profitable?
It is our experience that if you can acquire dry raw materials for a cost of $45.00 per ton or less, a plant producing as little as 2 tons per hour can be profitable (assuming you are able to market the finished product for at least $125.00 per ton).
Is pellet stove cheaper than propane?
Propane fuel will cost you 62% more than pellet fuel to get the same amount of heat output.
How long will 40 lbs of wood pellets burn?
A: According to the Pellet Fuels Institute, a 40-lb bag of pellet fuel can provide up to 24 hours of solid heat.
Are wood pellets cheaper than oil?
A 2011 report by the U.S. Energy Information Administration found that pellets cost $19.43 per thousand BTUs, while oil was priced at $36.33 per thousand BTUs. Prices for pellet and oil heating vary by year and location, but in general, heating with pellets costs less than heating with oil.
Can you make wood pellets from leaves?
Leaves is a high-fiber material. It is easy to made into pellets with high intensity. Leaves burns sufficiently and evenly, with high calorific value. Burning leaves generate little smoke or ash.
How do you make hard wood pellets?
To make wood pellets at home, you need crush the materials into small size with a wood hammer mill, then dry the crushed materials with a dryer machine(optional). After that, you can feed the materials into a flat die wood pellet mill. They will get formed into cylindrical solid pellets.
What holds wood pellets together?
The high pressure used in the pellet mill causes the wood to produce lignin, a polymer that allows the wood dust and pieces to bind together.
how much does a pellet mill cost
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Make Your Own Wood Pellets with GEMCO Small Pellet Mill and Large Pellet Mill from Logs
How to make your own wood pellets with small pellet mill and large pellet mill
Typical production processes in a small pellet mill
flat die pellet mill
The size of the raw materials before feeding into the pellet mill shouldn’t be larger than 1 inch (2.5cm), so you should use a hammer mill to reduce the size and make it as small as possible. The hammer mill can run at a high speed ranging from 3000RPM to over 8000RPM. Through the size of holes in the screen, which can range from as little as 1mm up to 10mm or more, the particle size is dictated. Because of a large range of screens to produce various particle sizes, the hammer mills become the most popular choice in pellet production plants.
Second step: Pelletizing
The dried materials will be forced through the die hole of a small pellet mill with great pressure produced by a roller. Generally, the common types are D type (rotating die type) and R type(rotating roller type). And in order to make the best pellets, different types of engines are available, for example, electric engine, diesel engine, gasoline engine and PTO are all optional.
The common types: D type and R type
Pelletizing:
Typical engines of small pellet mills:
Third step: Bagging
Typical production processes in a wood pellet plant
Pellet plant is another important type of pellet mills. And it is mainly consisted of wood chipper, hammer mill, dryer, pellet machine(usually use the ring die pellet machine), cooler and other auxiliary facilities(such as conveyor, packing machine and so on).
Production processes includes 8 steps:
First step: Initial size reduce
Second step: Drying The raw materials should be pre-processed before the production process. Size reduction is an important consideration in many industry like pelletization or cement production line , because it can be the limiting factor in production as well as one of the most costly steps in the entire process. A wood chipper is always used to pre-process the raw materials such as hardwood and so on. After chipping, the chipped woods should be reduced into the proper size, less than 6mm.
Third step: Initial sieving
In order to
Fourth step: Grinding The raw materials need to be dried before it turns into pellet mills. As for standard wood pellet plant, the best choice is always the drum dryer, also called flash dryer that works with high temperatures. Totally, drum dryers have relatively low cost and simple operation procedures. They have a tumbler which continually exposes the green material to hot air. The other choice is a flatbed dryer, which works at a relatively low temperature. After drying, the desired moisture content can be achieved.In order to ensure the quality of pellets , impurities must be screened out of the raw materials such as metals, stones or others. Before the raw materials turned into pellets, it should be screened for stones, plastic and other pieces of metal etc. The bigger stones and other materials are separated manually or installing a stone trap to separate the raw materials from the foreign objects. Others such as ferrous metals are picked away with a magnet from the conveying belt.
The grinding is a process accomplished by the hammer mill to reduce the size through the force of blunt hammers to 4-8 centimeters. In this step, the raw materials must be dry. And the size of grind are always controlled by screens.
Fifth step: Pelletizing
In this step, it usually forms the raw materials into pellets. Through the die hole of pellet mills with great pressure, the wood pellets will be extruded by the machines and become hot and soft, which must be sized properly to the operator’s requirements.
Sixth step: Cooling
In order to make the best wood pellets, air cooling is the necessary process to turn hotly extruded pellets into harden and strengthened. Once the pellets leave the press, they are very hot and plastic, easily deformable product at this time. Every effort must be made to handle this product as gently as possible until it is cooled, dried and hardened. After cooling, the final moisture content will be as low as 6% and the pellets will be transported through the conveyor belt to the storage shed.
Seventh step: Final sieving
In this step, the formed and cooled pellets are usually screened to remove oversized particles and fines prior to shipment to the customers. The degree depends on local market conditions and individual specifications.
Eighth step: Storage and Packaging
After the production process, in order to ensure a convenient use and better appearance, pellets are packaged into small bags since the pellets are less subject to abrasion during delivery. As for the storage of wood pellets, especially in summer. During the summer, there is a little requirement in the market, so the wood pellets will be stored for a long time. It should be kept in a dry condition, so it is very important that the building is water-tight and the wall can withstand the pressure of the pellets, to prevent rain or condensation. In general, pellets are distributed through truck or other vehicles.
The production process of a wood pellet plant
Global demand of wood pellets
Wood pellet global consumption prediction
prediction
Source: Hawkins Wright, Wood Pellet Association of Canada.
Through the relevant researches in recent years, it is obvious that the wood pellets market has a good future and there is still a big demand of wood pellets over the world.
On the other hand, compared with traditional fuel options, wood pellets are more friendly to the environment. It will be an important part of the development of environment protection. Besides, as a new fuel option, wood pellets can turn the raw materials into fully burning. That is to say, a little wood , a lot heating. So no matter for home-use or for trade, wood pellets still has a good future.
Cost of Setting up Wood Pellet Manufacturing Plant – Buy High Quality Pellet Mill Machine for Biomass Pellet Making
Wood pellets are important commodity in the world for industrial or household use. The pellets are a common type of biomass. It has become profitable to build wood pellet plant .
Wood Sawdust Pellets Wood Sawdust Pellets
Biomass Pellets Produced by Pellet Mill Biomass Pellets Produced by Pellet Mill
With the continuous use of biomass pellet fuel, pellet mill machines are widely used in wood pellet production line . And, setting up a complete wood pellet production line can produce cost-effective pellets, which will continue to expand the market field of biomass pellet machine. There are also good prospects for starting a wood pellet manufacturing business. (Read more: Guidance of Starting Wood Pellet Business >>)
Setup Wood Pellet Plant at Low Cost Setup Wood Pellet Plant at Low Cost
Successful Wood Pellet Plant Projects Successful Wood Pellet Plant Projects
Reliable Wood Pellet Manufacturing Plant Supplier – ABC Machinery
Anyone who is interested in getting into wood pellet manufacturing industry would have many questions about the setup of wood pellet plant and wood pellet making business, like
What’s the developing trends of global biomass pellet fuel market? Is it truly profitable?
What raw materials can be used for biomass pellet production? Is only wood sawdust suitable?
How much will it cost to build a complete pellet plant? How does the financial feasibility for a pellet plant go?
ABC Machinery been in biomass industry for at least 20 years and is specialized in designing and manufacturing of biomass pellet making machine. In these years, we have undertaken many turn-key project wood pellet production lines around the world, such as Japan, Italy, Peru, Indonesia, Malaysia, Australia, Latvia, Vietnam, United States, etc.. Welcome to contact us to get detailed project report.
We have witnessed the vigorous development of global wood pellet industry and we also grow up along with its development. We guarantee it is definitely profitable and has great potential to starting wood pellet manufacturing business. (Read more: Mobile Pellet Plant for Sale >>)
Here, we would offer some of the information for your reference!
The Global Market Development Trend for Wood Pellet
Huge Wood Pellets Market
Commonly known that for each country the pellet market can be divided to two markets which are the local market and the overseas market, they include:
Residential Customers
Residential customers use the biomass or wood pellets for heating their houses or workplaces, such as apartments, offices, schools, and other public or business buildings. They will have a yearly regular demand for pellet fuel and will stock their needs before winter season. The need for the residential customers will reach to hundreds of tons per year. This number would be likely to increase due to the residents are usually increase from time to time. The residents find wood pellets would be comfortable and environmentally friendly. (Related post: Homemade Pellet Mill >>)
Industrial Customers
Industrial customers would use the pellets for their industrial need such as machine fuel. As the environment problem has been a serious concern of many governments, industrial players has to come up with forest renewal or alternative source to manufacture the pellet from. So nowadays industrial purposes for using pellets are increasing due it is more economical than using mineral oil or natural gas that saves the industry more than half the heating cost. This economical value could be also applied to the residential customers. (Related post: Industrial Wood Pellet Machine >>)
It has been indicated previously that business related with wood pellet production would be likely to increase. As the industrial demands are growing for heating related materials such as this wood pellets, manufacturer and exporter business has increase in numbers. Main targets of wood pellet would the countries with winter season, such as Europe, America and Canada.
1TPH Wood Pellet Plant in UK
Raw Materials to Make Biomass Pellets
Raw Materials for Wood Pellet Manufacturing
Main raw material sources for the wood pellet feedstock would be: Wood remains from wood manufacturing process such as sawdust and wood chips; Harvested but low quality wood; Wood wastes or trashes; Grass; Corn; Biogas and other agriculture and forestry residues, etc. If you don’t whether your raw material can make pellets or not, you can choose to send us for pelletizing tests. Feel free to contact us directly!
Growth Softwood Hardwood Total All 124,998 106,581 231,579 Sawtimber 86,564 21,230 107,793 Non-sawlog 38,434 85,352 123,786
In Canada, wood pellets were made from wood logger or sawmill waste. This includes residues from sawmills such as wooden dust, wood shavings remains, little tree barks, dead trees that are infected by disease and insect and log wastes that have been left behind by sawmills in the woods after finished logging process. This also includes tree body parts that are not suited for any other applications. The wood pellet industries would turn this waste into economically profitable, environmentally friendly, future friendly, solid bio fuel. (Latest news: Small Pellet Mill Spare Parts to Canada >>)
In other countries like Austria it would not be so hard to find feedstock or raw materials to produce wood pellets. As Austria has one of the most richly forested country in Europe source of raw material would be very easy to find. The raw materials are renewable with government supervision. (Related project: 2TPH Complete Wood Pellet Equipment Installed in Australia >>)
Setup Your Own Commercial Wood Pellet Plant at Low Cost
Cost of setting up wood pellet manufacturing plant – buy high quality pellet mill machine for biomass pellet making: HOT sale wood pellet plant offered by biomass pellet mill machine manufacturer or supplier, guide on process of wood pellet production and how to start wood pellet manufacturing business with limited cost in Tanzania, Egypt, Morocco, Ghana, South Korea, etc.
Main Cost of Industrial Wood Pellet Manufacturing Project
The capital costs of complete wood pellet plant would be various in different regions around the globe. Deloitte research has a study resulting of capital costs for pellet plant in EU, are placed as follow:
Daily Operating Cost: $125 for each ton
Labour cost: $10 for each ton (the price is subject to change depending on the capacity)
Energy cost: $10 for each ton
Maintenance cost: $5 for each ton
Repairs and lifecycle maintenance cost: $5 for each ton
Transportation for bulk shipments cost: $2.5 for each ton
Basic Project Setup Cost:
Cost of pelletizing equipment: $3-4 million ( Complete wood pellet plant machinery includes crushing machine, drying machine, pellet mill machine, pellet cooling and packaging machine, etc ).
). Pellet warehousing, rail car loading facility cost: $2 million
ABC Machinery can also provide you turnkey solutions with other kinds of approach if the above capitals does not suit your requirements. And our customized biomass machinery would greatly reduce the cost to set up a wood pellet production line. If you are interested in opening a small scale wood pellet manufacturing factory, we are also happy to offer your the customized quotation!
Large Small Scale Wood Pellet Mill Project
It has come to a conclusion that to overcome the consistently increasing demand for wood pellets would be a profitable business if you pay attention to details. If you want to start a wood pellet plant or factory and manufacture high grade pellets fuel that would compete well in global market by reducing the variable costs, capital input and cost of production, we are here to give you 3 additional tips that might as well assist your business swiftly;
No.1 Obtain the government and industry grant and permits
No.2 Build a team with experienced recruit and well managed them
No.3 Update your knowledge about the latest wood pellet technologies
As for lastly friendly advice, do take care of our natural resources by maintaining the safety of manufacturing process, raw material harvesting and waste control.
Price Tag for Pellet
As an example, in the United Europe countries that is the main target for wood pellet market and has the widest pellet consumption experience in the world. A bulk cargo price for pellet in United Europe will be about more than $ 300 per ton. The logistic cost that includes storage and transport costs must be taken to consideration if one would like to be an exporter in wood pellet industry. For a United States exporter, the storage costs may add $ 10 per ton, and the transport costs may have additional cost of $ 35-45 per ton. The price survey done by proPellets Austria resulted in an average price of € 23.54 €-Cent per kg of wood pellets or 4.80 Cent per kWh.
You also would like to consider the delivery distance from supplier of raw materials, the bulk market, and the source of material to determine the price of your wood pellet.
How to start a wood pellet business？
How to start a wood pellet business？
In brief, to start a wood pellet business, you need to have stable supply of biomass materials, you should own or rent enough place to build a wood pellet workshop, and you need a complete set of wood pellet production equipment. Besides, you should take into account the electric power consumption, the labor cost, and the transportation cost.
Raw material sources
If you are a farm owner, you have easy access to abundant agriculture waste, such as crop straw, rice husk, grass, hay, cotton stalk, maize stalk, etc. If you manage a forest, you are easy to obtain leaves, branches, barks, bamboo, and other wood waste. If you operate a wood processing plant, furniture factory, or a timber mill, you will have much sawdust, wood powder, wood shaving, wood chips, etc. If you own a sugarcane or oil palm plantation, you will have huge amount of bagasse or EFB that can be made into pellets.
Also, you can buy biomass materials from the factories and plants mentioned above. In this regard, you need to take into account the transportation cost. You’d better select the location near the biomass material source.
Workshop building
The workshop should be large enough to deposit raw materials and hold wood pellet manufacturing equipment. To ensure continuous production, you should deposit raw materials at least for 15 days’ production. The raw material warehouse should have ceilings and quarantine measures to prevent rain, thunder, wind, and fire.
The size of the workshop is determined by the design of wood pellet plant. According to different production capacity and equipment, the land occupation varies a lot. You’d better consult the sales representatives for specific advices.
After confirming the size of the workshop, you can choose the location. To make full advantages of the regional advantages, you should consider the rent, electricity and water price, local policy, the distance from raw materials and markets.
Pellet manufacturing equipment
Crushing equipment
The crushing equipment serve to crush the raw materials into small size. It includes hammer mill, wood pulverizer, disc chipper, and drum chipper. For fine materials like sawdust and wood powder, this process is not necessary. If the size of raw materials is under 30mm, you can directly use hammer mills or wood pulverizers to reduce the size to 3-5mm. If the raw material size is larger than 30mm, you need to crush them into chips with disc chippers or drum chippers.
Conveying equipment
To transmit the crushed raw materials to the next equipment, we need a screw conveyor. Besides, scraper conveyor is used to transmit produced wood pellets. Conveyors serves as the connection part between different processing equipment.
Drying machine
The raw materials for making wood pellets should have the moisture content between 15% and 20%. Drum dryer has large size, high automation, and high efficiency, while airflow dryer has low cost, small size, and good drying effects.
Wood pellet machine
Pellet machine can make biomass materials into wood pellets. Generally, it has 2 types. Flat die pellet mill has small size, light weight, low cost, but the production is usually under 1t/h. Ring die pellet machine is suitable for scale production, with large size and high cost. But owing to the high efficiency of ring die pellet machines, the unit production cost and power consumption is relatively low. In a wood pellet plant, we can combine several wood pellet machine to double the production capacity.
Pellet cooler
The newly produced pellets from the wood pellet machine are hot. A counter-flow pellet cooler can cool the wood pellets to room temperature, and increase their hardness and lower the moisture content. This is an necessary process for packing in bags.
Pellet packaging machine
The wood pellets need to be bagged, stored or transported to the customers. Pellet packing machine can realize quantitative packing automatically. It has the function of weighing, packing, transmission and sewing. You’d better choose water proof bags, for the wood pellets will be useless once they get damp.
Silo storage
All equipment in a wood pellet production line
Sometimes the wood pellets are stored and transported in bulks. They are transmitted to the silos by belt conveyors and elevators, and transported to customers by trucks. In this case, you have to build a steel silo to deposit the wood pellets.
Operating cost
Besides the cost of raw materials, workshop, and equipment, you should consider the operating cost, including the power consumption, equipment maintenance, storage and transportation, labor cost, local policies, etc. Generally, the larger the production capacity, the lower the unit cost, and the higher the scale benefits.
Set target market
At last, you should set the target market and make thorough market research. Europe and North America are the major wood pellet market, while Korean and Japan are rising market. Wood pellets are usually used in home heating stoves and biomass power generation. The domestic wood pellet market is affected by the price of oil, gas, and the winter temperature, while the industrial wood pellet market is influenced by the environment protection policy.
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