company news about Is wood pellet business profitable?

Is wood pellet business profitable?

The wood pellet business has the potential to be profitable, which is supported by factors such as growing market demand and low - cost raw materials. The specific analysis is as follows:

• Favorable market demand: Driven by the global "double - carbon" goal, there is a growing demand for renewable energy. Wood pellets, as a clean and efficient biomass energy source, are widely used in industrial boilers, heating, and power plants. The European market, in particular, has a strong demand, accounting for 45% of the global market share, and is expected to maintain growth due to policy support. The Asia - Pacific region, led by China, is also expected to be the fastest - growing region in the future, with China's wood pellet fuel production expected to increase from 20 million tons in 2024 to 35 million tons in 2030.

• Low raw material cost: The raw materials for wood pelletsare mainly sawdust, wood shavings, furniture scraps, and agricultural waste, which are widely sourced. In some rural areas or at the source, the purchase price can be as low as 80 - 120 yuan per ton, and in some cases, waste wood can be obtained for free, which greatly reduces the production cost.

• Considerable profit margin: According to relevant data, the total cost of producing one - ton of wood pellets is about 250 - 450 yuan, including raw materials, electricity, labor, and packaging. The domestic retail price is usually 700 - 1000 yuan per ton, and the profit per ton can reach more than 300 yuan. If sold to the export market, such as the European Union, Japan, and South Korea, the price can reach 880 - 1200 yuan per ton, and the profit margin is even higher.

However, the wood pellet business is also affected by factors such as raw material supply stability, equipment quality, and market competition, which may bring certain risks to profitability.  Most importly, choose one the most suitable machine. 

Compared to other down-side disk pellet machine in the market, Jinzhao pellet machine is easy to maintenance and repair with low cost, because Jinzhao pellet machine has four sets of rotating wheels and supporting wheels, the spare parts is small bearings which cost about CNY15-20.

Choose Jinzhao, your reliable partner.