How to Start a Pellet Milling Business
Do you have a basic idea on how wood pellets are made? These are similar to gel capsule pills made from recycled materials such as sawdust left over from milling processes.
If you learn how these pellets are made and understand the equipment needed to produce them, then starting Pellet Milling Business would be very easy for you.
People are now aware that making their own pellet fuel can save them a lot of hassle and money. With popularity of pellet stoves nowadays, it can almost outpace commercial fuel production. The only difficulty is finding pellet fuel especially during colder months. However, raw materials in making pellet fuel are easy to attain and cheap. And if you are an individual conscious about the environment, you can burn clean and efficient fuel in biomass stoves which uses wood pellets.
Pellet Milling Business Plan
With the right equipment, biomass materials such as grass clippings, corn, wood chips, and sawdust can be converted into clean-burning, renewable fuel. All you need is a pellet machine or pellet mill as known by others. Therefore, if you want to start a Pellet Milling Business, you need to understand the basic functions of a pellet mill. This is the most important equipment you’ll ever need in your business operation.
Pellet mills take the raw materials and process them into pellet form. These are available in a range of capacities from 65-600 pounds per hour and prices start from $2,600. Take note that larger wood pieces need to be reduced to at least one-fourth inch before running these through the pellet mill.
Pellet Milling Business Guide
There are two different types of pellet mills. The main difference lies in the type of die used to form the resulting pellets:
- Die Type Pellet Mill – uses a ring die in order to form the pellets. This is a thick cylinder made of metal with drilled holes around its circumference. Inside the ring, there are rollers to push raw materials through the die as well as force them out of the holes. For most commercial consumers, this is what they need since it’s a heavy duty, high cost machine for regular owners.
- Flat Plate Type Pellet Mill – utilizes a flat plate in order to form the resulting pellets. The die used in meat grinders is very similar to this type of pellet mill. It’s made from a very thick flat plate also with holes drilled through it. For small scale producers, this is perfect since it’s simple and relatively easy to work on.
A pellet milling business is definitely profitable if you keep operation costs low. Remember that you need to factor in electricity and power costs as well because these directly influences the total cost of your production.
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