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Wood Pellets Production from Sawdust

Capacity 0 Plant and Machinery cost 0.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 0.00 %
Break Even Point (BEP) 0.00 % TCI 0.00 Lakhs
Cost of Project 0.00Lakhs

Description:

Wood Pellets Production from Sawdust. Earn Money from Wood Waste (Sawdust). Turning Sawdust into Briquettes.

 

Wood pellets, known for generating low emission and high power is gaining attention as an alternative to fossil fuels. Consumption of wood pellets for heating and power generation offers great advantages over burning fossil fuels, including renewability, low requirement of work input, cheap operating costs, and less emission of harmful substances.

Based on feedstock, the Wood Pellets Market is segmented into forest residues, agricultural residues, and energy crops. On the basis of the type of pellet heating appliance, the market segmentation includes free standing pellet stoves, pellet stove inserts, and pellet boilers. According to the application, it is categorized into power generation in industries, co-firing in industries, heating in residential sites, and heating in commercial sites.

Wood pellets have emerged as a viable and promising renewable energy source replacing coal in various advanced regions such as North America and Europe. The market for these biomass gained traction since they are considered to have low carbon footprints. The use of wood pellets as fuels has gained adoption for heating homes and power boilers, especially in various countries of Europe. The easy availability of raw materials such as timber and compacted sawdust and the low cost of production are key factors offering robust impetus to the wood pellets market. The mounting environmental concern about greenhouse gas emissions (GHGs) in countries such as the U.S., Canada, and Russia has made biomass fuels popular. In recent years, considerable progress made in logistics and advancement in combustion technology have boosted the wood pellets market.

Wood pellets are fast becoming popular in North America owing to the increasing prices of primary fuel. Demand for wood pellets in North America as a bio-mass fuel is increasing significantly, attributed to high demand for industrial as well as commercial purposes. Rising prices of fossil fuels including natural gas and fuel oil is one of the major driving factors for wood pellet heating. Concerns about climate change in North America is also stimulating the growth of the wood pellet market in the region.

Wood pellet markets comprise two primary sectors: industrial wood pellets that are used as a substitute for coal in power plants, and premium pellets used in pellet stoves and pellet boilers for heating.

Increasing carbon emission is a major driving force for the wood pellet market in the Western Europe region. There is high demand for wood pellets in this region to reduce carbon emission and raise the contribution of total renewable energy consumption. The use of co-firing and dedicated biomass power plants is a part of the compliance plan, which helps drive the wood pellet market in this region.

Based on geography, the market is segmented into Europe, Asia Pacific, North America, Central and South America, and the Middle East and Africa. Of these, Europe is a major market for wood pellets and led the market in 2015. The substantial demand for wood pellets from the U.K. has fuelled this regional market. The regional market is propelled by numerous government initiatives such as significant fiscal subsidies to boost the generation of renewable sources of energy. This has incentivized the use of wood pellets to produce electrical energy in this region.

The primary applications of the wood pellets are for heating and in power plants. The heating application segment held a major market share in 2016 and is expected to lead the overall market by revenue through the forecast period. The wide application of wood pellets for heating industrial and residential establishments is expected to boost the growth of segment in the coming years. The growing popularity of pellet fuel in advanced nations such as Canada is expected to bolster the demand for wood pellets in various regions. Recent advancements in wood pellet manufacturing processes have improved the commercial production of biomass, thereby accentuating the demand for wood pellets in heating applications. Furthermore, the setting of these manufacturing units are less capital-intensive than those for wind and solar energy, which has boosted the application of wood pellets for heating applications.

The global wood pallet market is estimated to be valued at nearly US$ 9,205 Mn by 2017 end and is expected to register a CAGR of 8.7% over the forecast period to be valued at nearly US$ 21 Bn by the end of 2027. Amongst all regions, Western Europe is anticipated to account for 72.6% value share in the global wood pellet market by 2017 end, followed by North America with 7.8% value share. Western Europe is anticipated to exhibit a higher incremental value during the forecast period as compared to other regions. Asia Pacific excluding Japan is projected to register a CAGR of 9.9% over the forecast period to account for 8.7% value share by 2027 end. Middle East and Africa is expected to account for 0.7% value share in the global wood pellet market by 2017 end. The market in MEA will register a CAGR of 7.4% over the forecast period.

Sawdust is a kind of by-product from cutting, grinding, drilling, sanding or pulverizing wood with a saw or other tools. Traditionally it is used for making particleboard to make furniture or wood pulp to produce paper; also can be served as mulch, alternative to clay cat litter. The most significant role of sawdust is played as fuel by processed into pellets.

It is an emerging and promising career to make wood pellets from sawdust. Nowadays, hundreds of countries all over the world have built their factories of making wood pellets from sawdust.

Usages of Sawdust Pellets:

·         As a matter of fact, sawdust pellet made from waste wood is a good kind of fuel to replace traditional fossil fuels like coal, gas, petrol, etc. It can be used for burning in a stove to cook at home;

·         Heat the house, school, hotel, or greenhouse, farm;

·         Industrial scale sawdust pellets production can be used in thermal power plants to replace coal.

·         Used as cat litter to replace clay;

·         Also can be used as horse bedding, or beddings for cow, chicken, dogs, and other animals.

·         Other usages waiting to be discovered.

Steps of Sawdust Pellets Making Process:

Ø  Get the raw material ready. Generally sawdust is small enough for pellet making. So the first step is to add water to the sawdust till its moisture content is between 8-15%, which is the best moisture content for pelletizing. But if the raw material is wood chips, they should be pulverized first.

Ø  Put the sawdust into the pellet machine gradually. Large scale pellet production need a screw feeder to make sure stable feeding of raw material.

Ø  After pelletized, the sawdust pellets are of high temperature that is not suitable for direct packing. So they should be cooled by pellet cooler.

Ø  Then, pellets go through a vibrating sieve, where good pellets will be left, while broken ones or powder will be collected for reproduction.

Ø  After all the above procedures, pellets can be packed with a pellet packing machine.

 

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Information

  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
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Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

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Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR