Is Large Scale Pellet Plant Profitable?

Large-scale production of pellets is recognized as one of best profitable business. Large pellet plant is more efficient than small pellet equipment as it is more automatic. Bagging machine for example, the pellet bags can be stacked on a pallet orderly and automatically. It is apparently that the larger the pellet plant you use the lower the cost of operation per ton you pay.

However, not everybody is available for large scale pellet mill plant!

It is not easy to operate this business. There are many prerequisites you should possess, such as constant source of raw material, large market for the output pellets, or else you probably will be faced to financial crisis.

Moreover, the competition of raw material markets fierce which means there could be quite a wide fluctuations in the price. Meanwhile, it is definitely a loss if running at less than full capacity.

In short, before purchasing a large scale pellet plant, make preparations on at least two things. One is find a stable raw material supplier at reasonable price. The other is to find the pellets a market of significant size to sell to!

Most of large scale pellet manufacturers ship their pellets around the world to find buyer, as it is necessary to send pellets overseas to find customers who need or area where fuel are insufficient. But the problem lies in the shipping costs which may effects the profit of your business.

As mentioned above, it is not wisdom to run the pellet plant at less than full capacity, so you have to buy enough raw material which means you have to pay for the added transportation cost.

One more thing that you should concern about is how to sell the pellets at a competitive price and cover the cost of transportation at the same time.

If you don't have these prerequisites or don't want to take the high-risk, here we offer you an alternative choose. We offer small scale pellet plants with super pellet making solutions. Also we have portable small pellet mill plant which allows you to move the equipment from one place to another. So you can reduce the cost of transportation by putting the pellet plant between the source of biomass material and the sales market to get high profits. To know more about our small scale pellet plant, you are welcome to contact us!