Biomass Business Plan

Biomass Business Plan-66
According to a study of capital costs for pellet plant in EU, which is researched by Deloitte, the capital costs are placed as follow: Base capital cost: 5 per ton (if your capacity is 100,000 tons per year, the base capital cost is .5 million ).Labor: per ton in a pellet plant with a capacity of 150,000 tons annually (the price is changing with the capacity) Energy: per ton Maintenance: per ton Repairs and lifecycle maintenance: per ton Loading onto rail for bulk shipments: .5 per ton Optional capital costs: Grinding on site: -4 million ( grinder, log deck, handling and debarking machine) Pellet storage, rail car loading facility: million If the above capital example does not suit you, Gemco can also provide you a personalized solution.

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Before you develop your own business plan for pellets manufacture, there are several questions you should try to figure out in top priority: By answering all the above questions, Gemco is helping you to find the most profitable way to start your pellet plant.

Typically, the global pellet fuel market for each country can be divided into two parts: the domestic market and the oversea market.

For a new pellet mill in Presque Isle, the recommend initial wood price would be $45 per ton.

The quarterly average prices for low-grade wood The capital costs can be extremely different according to the different regions around the world.

To start a pellet plant, the price of feedstock is also a main consideration.

Take the pulpwood from both hardwood and softwood in Presque Isle as an example, the price is about -45 per ton.

Take EU as an example, which is the main pellet market and has the longest pellet utilization experience in the world.

The pellet price in Europe with a bulk cargo is about €215 per ton ($ 304 per ton). exporter, the warehouse costs may add $ 10 per ton, and the transportation costs may add $ 35-45 per ton.

Based on the financial study by Deloitte, it is easy for the investors to get a general idea about the financial feasibility of running a pellet plant.

Project timing: planning 12-18 months, construction 12 months (want to reduce the pellet plant project time) Debt to equity ratios: Return on equity: 20% The key financial input sensitivity analysis Furthermore, as a part of the renewable energy industry, many governments have provided a financial assistance for pellet plant programs, it is also a good opportunity for investors to cut down their capital input and get more profit.

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