Sawdust pellet production as a business

Waste is generated during the operation of woodworking enterprises. They can be used to produce environmentally friendly fuel - pellets. This is a fairly profitable business, since many enterprises give away waste absolutely free of charge. We will talk about how to organize the production of pellets from sawdust in this article.

Activity registration

Before starting the production of pellets from sawdust at home, you need to register your business. Very often, novice entrepreneurs forget to issue permits, therefore, when an inspection comes to them, it is necessary to stop the production process. In the worst case, your equipment and finished products may be confiscated. Therefore, first of all, you need to draw up technical conditions and collect all the necessary documents.

For a small enterprise, it is enough to register an individual entrepreneur. If you plan to expand your business and produce products in large volumes in the future, it is better to open an LLC right away. This organizational and legal form allows you to conclude agreements with legal entities that work by bank transfer.

Purchase of raw materials

In order for the equipment for the production of pellets from sawdust to work without downtime, you need to find reliable suppliers of raw materials. Sawdust can be purchased at sawmills, wood processing plants and factories that are engaged in. Such waste is very cheap. Some businesses give them away for free so as not to spend money on disposal. Thanks to this, such a business is characterized by high profitability and quick payback.

Technological process

If you are interested in this area of activity, you should learn more about the technology for the production of pellets from sawdust.

The production process consists of several stages:

Waste crushing;
Debris removal and drying;
Hydration to normal;
Pressing sawdust;
Drying and cooling;
Package.

Since the price of equipment for the production of pellets from sawdust is quite high, you can do it yourself. If you use sawdust from a circular saw, you can do without a grinder. Two metal barrels are used as a dryer at home. In this case, you only need to buy a press.

Scheme: pellet production

Equipment

A large-scale enterprise will have to invest a large amount. Therefore, before purchasing a machine for the production of pellets from sawdust, it is necessary first of all to draw up a competent business plan and determine the approximate volumes of finished products.

Let's see what the sawdust pellet production line consists of.

Here is a sample list of units:

Granulator;
Dryer for raw materials;
crushing chamber;
Dryer for finished products;
Screw mixer.

Experts advise buying equipment only from reliable suppliers who can provide its service.

If we talk about pellet mills for the production of sawdust pellets, they can run on diesel fuel or on electricity. The unit with an electric motor is characterized by mobility. It can be used at the sawdust collection point.

A finished production line with a capacity of 700-1000 kg of products per hour will cost you 100 thousand dollars. Therefore, it is much more profitable to purchase machines separately. Thanks to this, you can save a lot. In parallel with the manufacture of pellets, you can adjust. This will allow you to significantly increase the profitability of the enterprise.

Staff

Everyone knows that the company will not be able to work without qualified personnel. First of all, this is an experienced technologist who controls the operation of the units.

In addition, you will need equipment operators, as well as an accountant and a storekeeper. All personnel must have the necessary qualifications and experience.

It is advisable to find equipment suppliers that offer free employee training. Usually large companies that sell production lines help customers to get acquainted with all the features of their operation.

Business Profitability

Pellets are granules pressed from sawdust. There are no serious requirements for their quality. Outwardly, these granules resemble cat litter. Pure sawdust can be used as a raw material, as well as straw, tree bark or sunflower husks can be added to them. Most importantly, the content of impurities should not exceed 5%.

The costs of organizing such a business are quite high, but they pay off in just one year. At the same time, its profitability reaches 90–100%.

Expenses

When compiling a business plan for an enterprise, the following costs should be taken into account:

Premises rental;
staff salaries;
Purchase of equipment;
raw material;
Payment of utility bills;
Payment of taxes;
Fare.

The biggest expense item is the purchase of equipment. You will have to spend quite a lot of money for this.

Income

To calculate future profits, let's take an eight-hour working day. Typically, the company operates 22-24 days a month. A cubic meter of sawdust costs 100 rubles. It takes 7.5 cubic meters to produce a ton of finished products.

The cost of pellets largely depends on their grade. First grade products are sold at 3.8–4.2 thousand rubles per ton. Industrial grade is cheaper - 3-3.5 thousand per ton. It is easy to calculate that an enterprise with high productivity will bring high income.

Sales

Any business needs reliable sales channels for finished products. If you find regular customers, the company will work steadily and develop.

You can sell pellets through construction markets, shops, on the Internet. It is most profitable to sell products to wholesalers in large quantities. Environmentally friendly fuel is very popular abroad. If you manage to establish contacts with foreign partners, you can not worry about the sale of finished products. Constantly look for new customers, advertise, call and choose the best outlets. The more products you sell, the higher the profitability of your business.