Is A Large Scale Wood Pellets Plant The Best Choice?

There is no doubt that over the next decade at least the demand for wood pellets will rise. Part of the demand is driven for the need for cheaper fuels, for instance recently in the UK the price of gas rose by 20%! These increases in demand clearly need to be meet with increases in supply which you maybe considering. If you are thinking of making wood pellets as part of the whole of your business, scale is commonly referenced factor. The bigger the better seems to be focus, as the larger the plant the lower costs to produce a ton of wood pellets due to economies of scale. This is true to the most part in the sense of a large scale demands less labour as more automation is brought in. For instance on a medium to large scale wood pellets plant you would probably still see the bags packed onto pallets by hand. However larger scale pellet plants can afford a robotic system, therefore reducing labour costs. However a very large scale pellet plant needs a good customer base, and where will those customers be located. As stated there will be sufficient demand, however the location of that demand is the key point. The more you have to transport your product, the lower your profit margins its as simple as that. Therefore bigger is not always better in the sense of the business as a whole. Therefore you want to develop and market to your local area as much as possible, as this is where true profits can be made. You can beat competitors on price as they have to cover transport costs where you do not. This may mean you look for a smaller pellet plant than you first thought, and we can help you with highly automated small pellet plants on PelHeat.com. However if you are looking at a larger capacity still we have the modular pellet plant which can be scaled up to any capacity required and is a portable plant. Within a day the modules can be loaded onto trailers and be transported to a new location. The key is to put a plant as close the raw material and end consumer as possible for maximum profits.

 The Wood Pellet Production Guide © PelHeat Ltd - Is A Large Scale Wood Pellets Plant The Best Choice?