What's The Cost of Biomass Wood Pelletization?

Wood pellet production technology belongs to the category of renewable energy. In recent years wood fuel pelletizing is becoming a hot promising investment project. Referring the cost of wood pellet production project, it is affected by a number of factors.

Complete biomass pellet plant

First of all, let's have a look at the layout of a typical biomass pelleting plant.

 Schematic layout of a typical biomass pelleting plant

Schematic layout of a typical biomass pelleting plant

Six Factors Which Affect  the Cost Of Pelletizing

A, the cost of the product has a number of factors:

  • The local raw material costs (including transportation costs)
  • Production energy costs
  • Machine wear and maintenance costs;
  • Other fixed assets depreciation cost;
  • Labor costs
  • Business management costs (including tax, sales, transportation, etc.)
These costs vary from place to place. What we can offer is energy consumption cost. Generally, the energy consumption cost is 110-190kWh/t. It might be slightly different depending on different raw materials and productivity. Expand the production scale can further reduce the cost.
Next, we would like to show a series of data for your reference. The data is depending on pelleting industry in UK.
  • The local raw material costs (including transportation costs): $24.5~34/t (32.81%~35.50%);
  • Production energy costs: $5.44~17/t (7.88%~16.40%);
  • Machine wear and maintenance costs: $8.16~15.64/t (11.8%~15.09%);
  • Other fixed assets depreciation cost: $1~2/t (1.45%~1.93%);
  • Labor costs: $10.88/t (10.50%~15.76%);
  • Business management costs (including tax, sales, transportation, etc.): $19.04~23.12/t (22.31%~27.59%)

Total cost: $69.02 ~ 103.64 / t.

Wood Pellets Price and Profit

In US market, the retail price of small package wood pellets is about $170 / t. The retail price of large package is about $135/t. In Sweden the delivery price is around $150 / t. For loose-packed wood pellets, the FOB in Amsterdam is about $80 / t.

The production cost of biomass pelletization is about $48.78 / t. So there is no doubt that biomass pelletization has great international market competitiveness. Invest in this green energy market is very promising.

Equipment Investment

complete biomass pelletization line

biomass pellet line

Click here to go to the master website of GEMCO Eneryg Machinery >> gcmec.com

A complete wood pellet line includes equipment of slicing, drying, crushing, pelleting, dedusting, cooling, screening, storage and packaging. The output can be 200 ~ 500 kg/h. Our pellet line can processing all kinds of wooden materials, such as forest felling, fuel wood, wood processing residues, furniture production wastes, etc. It can also deal with crops straw, such as corn stalk, rapeseed, cotton stalk, etc.