PELLETING DIFFICULTIES

Maybe I am not convincing enough in my statement that PELLETING is very difficult . 

My records and visits to many pelleting plant , be it Wood or EFB  Pellet , till todate the failure is nearly approaching 20 plant , big and small included . Definitely the number is much higher than this figure .

Potential Investor must understand the reason behind it to figure out why so many failure in this industries .

I append the major factor for the failure :

1 ) Wrong Machineries

•   Pelleting process need very high pressure to bind the dust back into pellet , many machineries are not able to cope with the HIGH PRESSURE and thus will be damage before it even start to really produce pellet .Talking about pressure , do you know how it work ?
• Pelleting need dry dust , dryer are needed to do the job , that is why American Dryer price are in the range of USD1 Million and above , the reason is you need consistent Moisture Dust to be able to produce consistently good grade pellet , otherwise there will be no pellet at all . I doubt many understand the science of drying !!
• Small Pellet Mill smaller than 500 kg / hour are a definite no no unless you are willing to put your money to burn , go calculate the returns !!!
• Go look at my video on Wood Pellet Manufacturing again , look at the rate of output and then compare the price of machineries . Then go visit the supplier and look at their output to be convince .

The above are only 20% of the main factor , if you do not know about the above , please do not invest , do your homework again , don't waste the precious cash for FAILURE .

2 ) Service and Training 

• I did mentioned earlier about this . The machineries from China is cheap because they do not provide proper Service and Training , this cost will easily increase their pricing by at least 20% . Low price act as an inducement for potential investor , so many will jump in but end up without anyone to turn to when failure stare at them 
• Supplier of machineries are just supplier , I am convince many are great Marketeer , they have never run a pelleting plant before . So when the going gets tough the supplier do not get going , they just ignore you .... , sounds familiar I guess . 
• Supplier are from China , they are not locals , they cannot stay long to guide and train local staff , so you can guess what will happen if problems start to crop up , who you gonna call !!

3 ) Experience and Skill

• Ask yourself , how much you know about Biomass and Manufacturing , I would say , if you are going to invest based on the so many inquiries you get from the market , please keep your cash in the Bank , at least it earn interest . If you do not have over few years on Material experience and few years in manufacturing it is a definite no no to invest 
• Do you have an enquiring and analytical mind ? Every action will have a reaction , when something happen there must be REASONS why it happen , it cannot happen just out of nothing . There is a Chinese saying , Die also don't know because of what !! I am saying this because this will happen many many times and you will need your skill and experience to overcome it 

Mark my word , go check around before you really decide to invest in this industry . There are too many failure which is not good for this industry overall .

EFB PELLET

EFB Pelleting

I get many calls enquiring about pelletisation of EFB ( Empty Fruit Bunch ). We did sample production many months back , it was easy for us as EFB is a single species raw material as compared to wood sawdust where the range of wood density varies widely which is difficult to control during material preparation . You can see the quality of EFB Pellet from the test run was of higher quality in terms of length and density ( Shinier ) . The tricks of getting good quality EFB Pellet is at the material preparation side  . If the input quality is good and with properly setup Pellet Mill there will be no problem in pelleting EFB .

EFB Pelleting Plant is more expensive compared to Wood Pelleting Plant as material preparation section will be needed to process EFB strand into smaller particles . EFB Input can be in the form of Whole Bunch EFB or Shredded EFB . Shredded EFB is the result of EFB being pressed in Palm Oil Mill for additional oil extraction .
EFB Plant setup are therefore different from Wood Pellet Plant because of additional machineries and thus planning ahead will bring tremendous profit later  .

In the case ot Shredded EFB or Pressed EFB , it need to be cut to shorter length . Thereafter , I would like to Dry it here when the EFB is in short length . But there are other ways to do this depending on your setup and dryer capability .

 Material Sizing is very important before the material enter pellet mill otherwise if the strand is too long it will choke the Pellet Mill and jammed the machine . This is where the skill and experience comes into play .

Some say Flat Die Pellet Mill is better and some argue   Ring  Die is as  good , this  depends  on  the " DRIVER " if you get what I mean !!!

The good pellet mill is the one that give you good quality pellet and high efficiency with minimal maintenance and downtime .

 "  DO NOT ATTEMPT THIS STUNT WITHOUT PROFESSIONAL GUIDANCE  "

There are many cases of failure to do it right from start and in the process losses are huge . Get correct advice from reputable and reliable supplier with know how to start . Many a times the seller of machineries just want to close sales and promise you the sky where in fact ( and most does ) they do not have the skill to run a pellet plant , worst if their machineries are not reliable . I have been to many plant which is a failure , my statistic , 7 - 8 out of 10 are failures or loss plenty of money before they can even start to make profit .

WOOD PELLET FOR SALE

We now offer wood pellet for sale in the local market .

Price delivered Klang Valley at RM300 / MT in Bulk Bag .

Below are the test certificate and photo of wood pellet .

Call me at 012 9887 118 Lee Seng Ann .

Drum Dryer

Sawdust Drying

We are touching this topic specifically due to it's importance to make good wood pellet unless your sawdust is already dried to 15% Moisture Content ( MC ) .

If you have gone through our earlier writings , the cost of drum dryer are significant for a Whole Line Wood Pellet Plant . The High price are due to it's big structure and complication in maintaining stable MC sawdust output . Sawdust comes in various MC from 12% to 60% , therefore it is important to control the MC for optimum pelleting otherwise you would not get high standard wood pellet and high production efficiency .

We will now study a typical drying process base on the following conditions :

1 ) Input Sawdust MC 35%

2 ) Output Sawdust MC 12%

3 ) Drying Rate 2 Ton Per Hour Output

To reduce MC from 35% to 12% you would need to evaporate 20% of water , based on 2,000 kg per hour output , water that need to be removed is 600kg and the input sawdust is 2,600 kg/hr .

To remove 600kg of water you will need 640kw ( 550,000 kCal/hour ) of energy which is equivalent to burning 200kg/hour of wood offcut . In short 100kg/hour need to be combusted to dry 1 TPH ( output ) sawdust . Cost of drying would be about RM5 / ton sawdust if your offcut cost is RM50 / ton .

The Calculation Chart below is from ASPENTECH software and reconfirm by manual calculation which I did not show here due to it's tediousness of calculation , suffice to say the input data , output data and design of the dryer are correct .

Drum Dryer selection are important , many factor affect the cost of the dryer , in this case we believe Drum Dryer Size of Diameter 1.5 meter X Length 9 meter should be enough to dry 2 TPH of sawdust .

Cost of this dryer should be around RM200,000 landed in Malaysia c/w stove , electrical panel and cyclone .

We hope to use this Dryer and the Pellet Mill to make EFB Pellet once we have started Wood Pellet Production probably in August 2011 .

Wood Pellet Plant

Whole Line Wood Pellet Mill Plant

As promised , today I will be writing about Densification of Wood Biomass to make Wood Pellet .

Wood Pellet can be made of wood sawdust , wood shavings , timber offcut and woodchip .

The purpose of Densification are as follows :-

1 ) common size - enabling automation ( automatic feeding and burning just like diesel/gas burner with high efficiency )

2 ) high calorific value - optimum combustion efficiency ( 90% efficiency is possible )

3 ) high density - lower transportation and storage cost

To achieve the above purpose , Feed Mill Machines have been turn to make wood pellet with some modification as wood have higher density and more difficult to be pelletised compared to animal feed .

Unless you are setting up large size Pellet Mill Plant of 20 TPH , small machineries from China would be more suitable due to their much more lower cost .

From our studies of wood pellet processing , optimum size of operation should be of 2 TPH to 5 TPH due to the availability of raw material , operation cost , profit margin and marketing .

Let's take a closer look at a 2 TPH Whole Line Wood Pellet Plant .

It will include sectional processing as follows :

1 ) Material Processing - Hammermill , Screener - RM75,000

2 ) Drying - Drum Dryer - RM180,000

3 ) Pelleting & Conditioning - Pellet Mill , Conditioner / Cooler - RM160,000

4 ) Packing - Storage Bin , Packing Machine , Weighting Scale - RM30,000

All the Segment above can be connected with belt conveyors , screw conveyors or bucket elavator to make it fully automated with only 5 workers during operation . Additional cost for this could be around RM150,000 .

Electrical , Local Fabrication , Installation Cost , Training will cost another RM120,000 .

Provision for 6 months Spare Parts and Miscellanous will cost RM50,000 .

The above is indicative cost of setting up a Whole Line Wood Pellet Plant based on 2 TPH production .

You could refer to the side bar and the bottom for some pictures of the above machineries .

Call us if you need further consultation .

Pellet Mill

Pellet Mill are the " HEART " for Wood Pellet Production , Very Important . All other equipment are Ancillaries .

Pellet Mill Equipment from China are still at a very infant stage as compared to American or European Pellet Mill , but pricing wise , it is only 1 / 5 the price .

Unless you are going for very high output and have the investment capacity to invest for very long term , China Machines are of better choice .

And even so , you have so many Suppliers , Hundreds maybe , some are Merc , some Toyotas and some Protons , you could guess what I mean , pricing starts from USD20,000 to USD50,000 / unit for a Pellet Mill and Whole Line Plant can range from USD200,000 to USD650,000 for a 2 TPH Line . We have scour many part of China for the right machines .

The lower range will get you to do more maintenance and lower production and the higher range might not be feasible for Malaysia Environment . So , choose wisely .
Due to it's infancy , choosing the right Pellet Mill are important as it have the following problems that need to be address :


1 ) Die Chamber too Hot thus Die will break under stress ( Die cost RM6,000 / unit )

2 ) 24 hours operation not possible

3 ) Standard Die size of 420mm Diameter ( the normal Model SZLH420 MZLH420 ) definitely cannot produce more than 2 TPH per machine , if all conditions are right maybe you would get 1.5 TPH , this is where the learning curve start , how soon can you achieve optimum production , simple calculation , shortage of 0.5 TPH X 2 machine X 16 hour / day X 26 day / month X 3 months X RM100 / ton = RM124,800 in Sales Value , so imagine the savings if it is longer than 3 months . ( Some Manufacturer are claiming above 2 TPH , even 3 TPH )
The Pellet Mill we chose have somehow resolve partially some of the above problems with the right combination of ancillaries equipment . In our opinion it is of reasonable pricing and technically capable to handle over 2 TPH wood pellet production with minimum staffing .
You are invited to visit us once production starts .
The problem above may need another 5 years to solved as the supplier of this machines learn from mistakes and improved on it .
Our target is to invest in reasonably priced machine , high efficiency and low maintenance , so that we can recoup our investment in shortest time possible and have a decent profit to show .

WOOD PELLET

WOOD PELLET

This is a new industry in Malaysia with only a few small plant of 1 ton per hour ( TPH ) production .

We are putting up a 2 TPH Whole Line Wood Pellet Mill Plant operational in April 2011 .

Write us if you need Wood Pellet or want to set up a Wood Pellet Plant .

The chart shows normal Biomass Calorific Value with various Moisture Content .

These means the higher the Moisture Content ( water in the Biomass ) the lower the Calorific Value of the biomass because when you burn biomass you will need to heat the biomass to above 250 ºC . before you reach this temperature , during combustion water need to evaporate at 100 ºC , the more water you have in the biomass the more energy you need to spent to evaporate the water thus the lower Calorific Value if the MC of the biomass is high .

It means , you are buying WATER not ENERGY !!!

Many articles have put Wood Pellet Calorific Value at 4,200 kCal/kg with bulk density of 600 kg/m3 thus making it more viable to be transported over long distance as compared to woodchip at 300 kg/m3 and sawdust at 200kg/m3 .

Furthermore Wood Pellet are dry at below 10% MC thus giving it a high ratio of enegy / volume .

From the table , Wood Pellet are reasonably priced in relation to it's energy value . The high cost per ton are due to processing cost needed for densification and drying .

As Wood Pellet are of constant size it usage can be easily automated just like gas or diesel burner . And the beauty is you can achieve over 90% combustion efficiency just like gas / diesel burner as compared to normal burning in furnace which efficiency are low at below 80% combustion efficiency . It is very technical !

In fact , most European Countries and now Korea , combustion now have shift to Wood Pellet from gas or diesel due to it's availability , environmental concern and government tax on fossil fuel .

Lately there is this hot topic of turning EFB to EFB Pellet . It would be great if it is suitable and there is market for it .

We are working on launching Wood Pellet Burner in a few months time together with our Wood Pellet .

STAY TUNED .

Malaysia Biomass & Calorific Value

Choose Biomass that is low in $ / kCal instead of $ / kg .

Malaysia Biomass

Malaysia Biomass . Biomass Calorific Value are very important in the selection of fuel for combustion and gasification . This is due to Energy content per kg of biomass . You can have very cheap biomass such as EFB but due to it's Moisture Content of 65% and so Calorific Value will be low at 1,400 kCal / kg . Moreover during combustion , silica ash will scale the tube causing reduction in efficiency of boiler and fly ash is a concern with Environment Authority .

Typically there are plenty of biomass materials in Malaysia which are able to be used to replace fossil fuel . Malaysia Biomass material available are as follows :

Material Calorific Value Moisture Content
1 ) Woodchip 3,500 Kcal / kg 25 %
2 ) Sawdust 3,500 Kcal / kg 25 %
3 ) Empty Fruit Bunch 1,400 Kcal / kg 65 %
4 ) Rice Husk 3,000 Kcal / kg 10 %

The above Malaysia Biomass is among the lowest in $ / kCal ( high in energy density per RM ) and available in abundance in Malaysia .

I did not include wood pellet as it is to my knowledge still not available in Malaysia ( I would like to know who have it ? ) . This biomass will be in the future replace wood chip due to very standardise size and quality of heat output .

The above mentioned biomass are which I will elaborate more due to current available technology for full combustion which will emit no smoke . These is done by converting the said biomass to syngas .

The problem for these change over to biomass thermal application is the lack of suitable biomass material , inconsistent quality supply of biomass , system for combustion , high delivery cost , long perceived thinking that biomass emits heavy smoke , storage problem for user and etc .

For the record , the favourite , Diesel ( Calorific Value - 8,770 Kcal / liter ) was the thermal fuel in Malaysia which is widely available and cheap for the last decades . As it is now a heavy burden to many industries , it is time to change to biomass not only that it is green , it will also enable industries to save on high fuel cost .

Here I will go into details for Wood Chip as the preferred biomass due to reason i will mention below .

Wood Chip

is a product derived from sawmill waste . Quite recently in the last 1 year or so , plenty of wood chip production come on stream due to demand from MDF and Particle Board Manufacturer . But now due to it's limited supply , price have moved up and stablilised at around RM150 / ton to RM200 / ton depending on delivery cost . I am suggesting this biomass material ( Wood Chip Only ) to be used as fuel for gasifier due to

a ) year round availablity

b ) easy delivery

c ) lower cost of transportation

d ) ease of handling

e ) lesser contamination at user factory

and etc .

At the price given it will work out to RM0.061 per mmCalorie ( RM15.47 / mmBTU ) compared to diesel when price is RM3.20 / liter at RM0.354 per mmCalorie ( RM89.18 / mmBTU ) . From this comparison you can see that wood chip is only 17 % of diesel .

WOW , did anyone realise this ???

Yes , I did claim that there is 70 % savings only for change over to gasifier , this is due to some loss of heat during gasification process , in some unefficient gasifier you might get even lower savings in the range of 50 % to 60 % only .

The reason I did not elaborate on EFB ( Empty Fruit Bunch ) eventhough it is cheap is because it need to be further process and the calorific value is very low . Another reason is that my proposed gasifier system might not be able to take these fuel or I would rather say efficiency will be very low . There is Ah Niau and Ah Kau that would say , what savings of 70% , mine can do at least 90 % savings with EFB as it is cheap , HAHAHAHHAHAH , BE CAREFUL .

But I promise you if you can wait a few years ( or your factory can wait for a few years ) I will try to bring 90 % to you . These is when Oil at USD200 per barrel and EFB can be use .

So the saying goes like this , YOU GET WHAT YOU PAID FOR !!!

ACT NOW !!! AND GET BACK YOUR INVESTMENT WITHIN 1 YEAR ..........

The next blog will be on choosing the right gasifier . Am I up to it ???

Bye for now .