Are you still going to install wood pelletting plant?

Dear Gentelmen,

Wood pellets market this year is outliving crisis. I personally know

3 wood pelleting plants which are really on the verge bankruptcy.

I do not take into consideration European plants, where wood pelleting mills are closed /sold / moved

to another country, where huge wood pellets producers have become bankrupts. I consider our Russian reality and will try to give today's explanation :

  • the price on wood pellets is equal to cost price and logistics costs;



  • rise in prices for raw material



  • a part of enterprises where wood waste appeared are installing boiler which work on wood waste and go uot from coal and mazut. They are no longer selling wood waste



  • Biodiesel, biogas, agrienergy are being developed in Europe



  • Investment calculations turned to be incorrect, revenue periods are not exact, the production cost is lowered (equipment manufacturers tried their best)



  • No, in the nearest decades there will no be inner wood pellets market! 2-3 boiler-rooms neear a huge amount of wood chips more likely to show how "the Russians can count money!"



  • The stated does not stimulate and is not going to stimulate biofuel development, you will never wait till you are given a subsidy on pellet boiler's installation



  • The state is always controlling energy carriers that is why the appearance of export export duties is innevitable !



  • Europeans will not let themselves to get down form "gas needle" and sit down on "pellet needle"



  • The increase of wood pellets consumption has not proved itself



In this case I tried to express my point of view in my region. It is possible that in other regions it is quite different with feedstock, that is why it is you who make conclusions!

Re: Are You Still Going To Install Wood Pelletting Plant

Posted on 9. Dec. 2007 - 11:40

Exact!

I do agree especially with your phrases:

"2-3 boiler-rooms on wood pellets near a big amount of wood chips" - an example of foolish econony!

"The state does not stimulate and won't stimulate biofuel development, one will never wait till paying grants on wood pellets boiler installation"

Everything is inside out in Russia, the example of Kemerovo Region, where coal lobby openly operates.

"The state has always been putting its paw on enery sources that is why the appearance of export export duties is innevitable!"

The God told to share.

Re: Are You Still Going To Install Wood Pelletting Plant?

Posted on 12. Dec. 2007 - 08:03

Its tough to be in this business, yes.

One has to develop the complete value chain in order to establish business in the market. Goverments seem to support establishment of wood pellet manufacturing business without helping develop the end user market.

But....energy prices are rising and those who are "stayers" in this business will create good business in the near future - I believe.

I am developing an end user market with new technology for vertical transport conveying of pellets. This gives even dosage of pellets to a burner and 10 pilot units are installed in Norway and Sweden after 6 years of research and development.

I'm staying in this business, after all.

Ukraine is now among 9 countries that are listed by the Swedish Export Council as a business opportunity for pellet equipment manufacturers (end user market).

rgds from Norway

It Is Devoted To Thosewho Got Into Scrape And Become Pessimists

Posted on 12. Dec. 2007 - 09:18

At designing any business it is necessary to note the following moments:

1.For whome the given product is necessary

3. How far is it liquid ? The volomes of wood pellets consumtion ?

4. Raw material availability

5. Personnel availability

6. Logistics (not only actually transportation, but also storage, loading/unloading, port and railway transportation)

7. Power consumption and opportunities

8. Tax and other deductions

9. Investments amount and a pay-back period

Re: Are You Still Going To Install Wood Pelletting Plant?

Posted on 1. Feb. 2008 - 04:38

[guote]Ukraine is now among 9 countries that are listed by the Swedish Export Council [/guote]

Where have you taken this info?

Re: Are You Still Going To Install Wood Pelletting Plant?

Posted on 22. Dec. 2008 - 03:43

One has to develop the complete value chain in order to establish business in the market.

It is not easy to get into this market, e.g. Italian pellet market

[url=http://pellets-wood.com]wood pellets biofuel[/url]