How to establish the production of pellets from sawdust

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, one of the most popular types of raw materials are fuel pellets. Despite the fact that they appeared on the Russian market relatively recently, today they are in great demand, which is only growing every year. This is due to the low cost, since for their production they use the waste remaining after the harvesting of timber. Thus, sawmills manage not only to reduce the cost of wood chips and sawdust disposal, but also to get additional profit. At the same time, great opportunities open up for entrepreneurs. They can set up sawdust pellet production and build a profitable business. How to do this, as well as all the features of this type of activity will be discussed further.

Benefits of Pellet Making Business

The production of pellets from sawdust at home, the technology of which will be discussed in detail below, has many advantages, the main ones being lowproduction cost, high profitability and stable demand for pellets, regardless of the season. On average, the margin on finished products is about 80 percent. This is achieved due to the low cost of raw materials. The fact is that sawmills are forbidden to store large amounts of waste in their warehouses due to the high probability of fire, so they are happy to sell them for mere pennies to avoid fines.

Thus, if the line for the production of pellets from sawdust is well established and equipped with all the necessary equipment, then the invested funds will quickly pay off. At the same time, the scope of fuel capsules is simply huge, so they can be safely supplied not only to the Russian, but also to the international market.

Technological process

So what is it? The technology for the production of pellets from sawdust is quite simple and is carried out according to the following algorithm:

1. Coarse crushing of wood waste, necessary for better drying of the material before subsequent use.
2. Drying in specialized chambers until the moisture content of the raw material drops to 10 percent.
3. Fine wood chipping for better pressing.
4. Water treatment. If the moisture content of the raw material is below 8%, then the finished product will be of poor quality. Therefore, to improve the pressing and shaping the granules, the sawdust is preliminarily doused with steam.
5. Pressing. This is the final stage of production. After shaping the pellets, they are first heated inovens to a temperature of 90 degrees, after which they are sent for shock freezing.

When the products are completely ready, they are sifted from crumbs and defects, and then sent for packaging in bags. As for waste, in this type of business they simply do not exist. All scrap is used for re-production.

Technical equipment

For a business to make money, you need to produce large volumes of products, and this requires specialized equipment for the production of pellets from sawdust. The choice of machines and conveyors largely depends on the scale of the enterprise. One full-fledged line, consisting of 15 nodes, will cost about 1.8 million rubles if purchased directly from the manufacturing plant. If you are just starting a project and do not have a large start-up capital, then you can make a line yourself.

This will require the following mechanisms:

• wood chipping machine - from 180,000 rubles;
• drying chamber - from 400,000 rubles;
• granulator - from 50 000 rubles;
• finished product cooler - average cost is 400,000 rubles

Homemade machine for the production of pellets from sawdust will allow you to set up the work of the enterprise and produce large volumes of fuel pellets with minimal financial investment. Some novice businessmen are considering ready-made lines from Chinese brands, but this is not the best option, since their prices are not the lowest, but the qualityand the reliability of the equipment is highly questionable.

Implementation and launch of the project

To start the production of pellets from sawdust, you need a room with a minimum area of 100 square meters, to which electric wires with a power of 380 watts are connected, and there are also entrances for trucks. It is worth noting that it is not very advisable to rent a large workshop, since in this case it will be necessary to solve many problems with the transportation of finished products from the line to the storage location.

In addition, the conveyors are fully automated, so they do not require a large number of specialists to maintain them. In the early stages of work, you can do this yourself and thus reduce the cost of wages for employees. You will attract additional labor force as the business scales. And for equipment diagnostics and repair, outsourcers can be involved.

Making pellets at home

This issue deserves special attention. The production of pellets from sawdust at home is also quite realistic. There are many advantages in this compared to opening a factory. Undoubtedly, the number of products produced and the profit from its sale will be much lower, however, reaching the break-even level will take much less time. On average, it takes about 2-3 months for a return on investment.

Today on sale you can find mobile lines that do not occupy large areas, so they are no problemreally place in the courtyard of a private house. At the same time, there are models that work not only on electricity, but also on diesel fuel. Their main advantage is low cost, but when deciding to buy them, consider the fact that the functionality of the equipment will also be at a minimum. It will not be able to grind and dry raw materials. In addition, the quality of the finished product will also be at a very low level, so it will not be possible to sell it at a high price.

Where to buy raw materials?

For the production of pellets from sawdust to work, it is necessary to find suppliers. There will be no problems with this, since today there are a huge number of companies that spend large sums on the disposal of wood waste. Therefore, they will gladly sell them to you. All you need to do is call the sawmills located near your plant base and arrange bulk purchases.

Sale of finished products

As mentioned earlier, fuel pellets are in great demand both on the domestic and global markets, so the goods will not stay in warehouses for a long time. Deliveries to Europe are especially promising, since timber prices there are very high, so pellets can be sold at a much higher price than in Russia. But at the same time, you should carefully consider logistical routes.

If you don’t have money for specialized equipment for the production of pellets from sawdust, and you plan to launch a mini-factory that is physically unable toto produce large batches of fuel, then in this case one should focus on a regional consumer, which can be individuals who heat their homes with wood-burning stoves.

Drawing up a business plan

Let's take a closer look at this. Regardless of whether you are an experienced entrepreneur with great work skills or a beginner, before you start purchasing equipment and finding a suitable premises, you need to draw up a well-developed business plan for the production of sawdust pellets from sawdust. This will allow not only to avoid many pitfalls and problems in the future, but also to realistically assess the prospects of the project.

In the planning process, it is very important to conduct a detailed market monitoring and assess the level of competition in your area. In addition, it is necessary to carry out negotiations with suppliers in advance, arrange the shipment of raw materials, having carefully worked out routes and calculated the cost of supplies, as well as assess the real demand for fuel pellets.

If the production is carried out at home, then focus on a three-month return on investment, and in the case of a full-fledged plant, a year. But don't overestimate the numbers. It's better to be a little pessimistic, because the market situation is constantly changing, and therefore, the demand for products, along with profits, will be inconsistent.

Legal

What are they? The production of pellets from sawdust, like any other type of entrepreneurial activity, requires registration with the tax office. As showspractice, some beginners start working without permits, as a result of which they face a lot of problems and impressive fines. In addition, regulators can even confiscate all equipment. To avoid this, it is very important to first settle all legal aspects before starting your business.

For a mini-factory, you can register as an individual entrepreneur, but if you plan to expand production over time, it is better to start working as an LLC right away. This way you will be able to conclude contracts for the supply of products to legal entities and accept payments by bank transfer.

Enterprise profitability and potential earnings

What can an entrepreneur expect? The cost of producing pellets from sawdust is very low, so it will take only a few months to reach the payback level, after which the business will begin to generate a net profit. Many pellet companies charge a markup of 90-100 percent, which makes their profits huge.

So that you can understand the specific numbers, let's do a little calculation. The cost of one cubic meter of wood waste is on average 100 rubles. It takes seven and a half cubic meters to produce one ton of fuel. Thus, for the production of a ton of pellets, you will spend only 750 rubles, and sell it on the market for approximately 3,500 to 4,500 rubles.

Tips for beginners

Tothe pellet business met expectations and paid back the invested funds, and aspiring entrepreneurs did not make the most common mistakes that all beginners face, it is recommended to adhere to the following tips:

• before the equipment of the logistics base, find and arrange with sawmills for the supply of sawdust so that there is no interruption in the production process.
• to minimize risks and increase profits, simultaneously launch a foam production line;
• buy quality equipment from famous brands;
• hire workers who live near the plant so they can get to work normally;
• issue permits immediately.

These tips will help you not only avoid pitfalls, but also create a profitable business that will certainly bring a steady income.