Today, one of the most popular varieties 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 growing every year. This is due to the low cost, because for their production use the waste remaining after harvesting timber. Thus, the sawmills manage to not only reduce the cost of recycling chips and sawdust, but also get additional profit. At the same time, great opportunities are also opening up for entrepreneurs. They can organize the production of sawdust pellets and build a profitable business. How to do this, as well as all the features of this type of activity will be discussed later.
Benefits of a fuel pellet business
The production of sawdust pellets at home, the technology of which will be discussed in detail below, has many advantages, the main ones being low production costs, 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 thing is that sawmills are forbidden to store large amounts of waste in their warehouses because of the high probability of fire, so they are happy to sell them for mere pennies in order to avoid fines.
Thus, if the sawdust pellet production line is well established and equipped with all necessary equipment, then the invested funds will quickly pay off. Moreover, 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 he like? The technology for the production of pellets from sawdust is quite simple and is carried out according to the following algorithm:
- Coarse crushing of wood waste, necessary for better drying of the material before subsequent use.
- Drying in specialized chambers until the moisture content of the raw material drops to 10 percent.
- Fine wood crushing for better pressing.
- Water treatment. If the moisture content of the raw material is below 8%, then the finished product will be of poor quality at the output. Therefore, in order to improve compaction and shape the granules, sawdust is preliminarily vaporized.
- Pressing. This is the final stage of production. After shaping the pellets, they are first heated in furnaces to a temperature of 90 degrees, and then sent to shock freezing.
When the product is completely ready, it is screened out from crumbs and marriage, and then sent for packaging in bags. As for waste, in this type of business they simply do not exist. All rejects are used for re-production.
Technical equipment
For the business to bring money, it is necessary 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 size of the enterprise. One full line, consisting of 15 nodes, will cost about 1.8 million rubles, if you buy directly from the manufacturer. If you are just starting a project and do not have a large start-up capital, then the line can be done independently.
This will require the following mechanisms:
- a machine for chopping wood - from 180 000 r .;
- drying chamber - from 400 000 r .;
- granulator - from 50 000 r .;
- finished product cooler - the average cost is 400,000 p.
A home-made machine for the production of pellets from sawdust will allow us to organize 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, and the quality and reliability of the equipment is in great doubt.
Project implementation and launch
To start the production of pellets from sawdust, you need a room with a minimum area of 100 square meters, to which electrical wires with a capacity 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 for their maintenance does not require a large number of specialists. At the first stages of work, this can be done independently and thus reduce the cost of wages for employees. You will be attracting additional labor as your business grows. And for the diagnosis and repair of equipment, you can attract outsourcers.
Making pellets at home
This issue should be emphasized. The production of sawdust pellets at home is also quite feasible. This has many advantages compared to the opening of the plant. Undoubtedly, the quantity of output and profit from its sale will be significantly lower, however, reaching the break-even level will take much less time. On average, a return on investment takes about 2-3 months.
Today on sale you can find mobile lines that do not occupy large areas, so they can be easily placed 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 the raw materials. In addition, the quality of the finished product will also be at a very low level, so selling it at a high price will not work.
Where to buy raw materials?
For the production of sawdust pellets to work, you need to find suppliers. There will be no problems with this, because today there are a huge number of companies that spend large amounts on the disposal of wood waste. Therefore, they will be happy to sell them to you. You just need to ring up the sawmills located near the location of your plant, and agree on wholesale purchases.
Sales of finished products
As mentioned earlier, fuel granules are in great demand both on the domestic and global markets, so the goods will not be stored in warehouses for a long time. Particularly promising are supplies to Europe, since forest prices there are very high, so pellets can be sold much more expensive than in Russia. But at the same time, you should carefully consider the logistics routes.
If you don’t have money for specialized equipment for the production of sawdust pellets, and you plan to launch a mini-factory physically incapable of producing large batches of fuel, then in this case you should focus on the regional consumer, which can be private individuals who heat their homes wood stoves.
Drawing up a business plan
Let's dwell on this in more detail. Regardless of whether you are an experienced entrepreneur with a great skill, or a beginner, before proceeding with the purchase of equipment and finding a suitable room, you need to draw up a well-developed business plan for the production of sawdust pellets. This will not only avoid a lot of pitfalls and problems in the future, but also really appreciate the prospects of the project.
In the planning process, it is very important to conduct detailed market monitoring and assess the level of competition in your area. In addition, it is necessary to negotiate with suppliers in advance, to arrange the shipment of raw materials, having carefully worked out the routes and calculating the cost of deliveries, and also to evaluate 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 - on an annual basis. But don't overstate the numbers. It is better to be a little pessimistic, since the market situation is constantly changing, and therefore, the demand for products along with profit will be unstable.
Legal Aspects
What are they? The production of sawdust pellets, like any other type of entrepreneurial activity, requires registration with the tax inspectorate. As practice shows, some beginners start working without permits, as a result of which they face a lot of problems and impressive fines. In addition, regulators may even confiscate all equipment. To avoid this, before starting your activity it is very important to first resolve all legal aspects.
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. So you can conclude contracts for the supply of products to legal entities and accept payments by bank transfer.
Profitability of the enterprise and potential income
What can an entrepreneur expect? The cost of producing pellets from sawdust is very low, so reaching a return on investment will take only a few months, after which the business will start generating net profit. Many companies engaged in the manufacture of fuel pellets set a mark-up at the level of 90-100 percent, so their income is simply huge.
So that you can understand the specific numbers, let's give a small calculation. The cost of one cubic meter of wood waste is an average of 100 rubles. The production of one ton of fuel requires seven and a half cubic meters. Thus, for the production of a ton of granules, you will spend only 750 rubles, and sell it on the market from about 3,500 to 4,500 rubles.
Tips for beginners
In order for the fuel pellet business to live up to expectations and pay back the invested funds, and start-up entrepreneurs not to make the most common mistakes that all newcomers encounter, it is recommended that you follow these tips:
- Before equipment of the material and technical base, find and agree with the sawmills on the supply of sawdust so that there are no interruptions in the production process.
- in order to minimize risks and increase profits, simultaneously launch a foam manufacturing line;
- buy high-quality equipment from famous brands;
- hire workers who live near the plant so that they can get to work normally;
- execute permits immediately.
These tips will help you not only avoid pitfalls, but also create a profitable business that will certainly bring a steady income.