100% Complete Line Wood Pellet Machine or Mixed Line Wood Pellet Machine?

Factors namely the high investment value for purchasing high-quality wood pellet production machines (CAPEX) are often the main obstacle for prospective wood pellet producers. With high-quality machines from A-Z or 100% complete line, production constraints such as quantity and quality of wood pellets can usually be easily overcome so that the goals of the wood pellet business can be achieved. This is because with the 100% complete line configuration, the quality and reliability of the production machine have been tested and provided by one manufacturer, for example a certain brand manufacturer from Europe. This is where it can be said that the performance or performance of the machine with the cost is directly proportional so that the cost to benefit ratio is also expected to be equivalent so that the business remains profitable. Moreover, the need for high-quality wood pellet machines, especially for large capacity production, so that the risk factor of failure can be avoided and minimized.

Then how to achieve machine performance so that production targets (quality and quantity) are also achieved but with a cheaper investment value (CAPEX)? With conditions like this, of course, it is necessary to make an effort to modify the configuration of production machines from other compatible manufacturers or mixed line configurations. As a mixed line configuration, of course, it is necessary to analyze which parts or machines must be maintained with the best quality and which supporting machines can use from other manufacturers. The main machines that have a vital role in wood pellet production such as pelletizers should use high-quality machines while other supporting machines can be of lower quality or functional only so as to maintain the performance of the wood pellet factory's production target. So that in the end, the composition or configuration of the mixed line could be 20% European machines and 80% Asian machines and so on.

In fact, it is not easy to find other compatible machine manufacturers, especially in terms of design factors, and machine quality including performance and durability. This is why it is necessary to consider the track record or success story of the supporting machine manufacturer. If the supporting machine manufacturer has had similar experience before, this will be better, but if not, the risk factor for failure will be greater.

In some real cases in wood pellet production, namely pelletizers have used European brands that have proven their performance quality but the supporting machines are not compatible so that the production target is not achieved, for example, a pelletizer requires 3 tons/hour of dry sawdust input/feeding but the output of the drying machine (rotary dryer) which is the input/feeding to the pelletizer is less than that or only about half. So to be able to get the price of a large capacity production machine with the expected performance so that the production target can be achieved with a "cheap" investment (CAPEX) is indeed not easy but it is possible to try and there have been several success stories that prove it.

Opportunity to Export Wood Pellet to Germany

At the end of 2022 or this year, all nuclear power plants in Germany will be discontinued, then in 2030 or at the latest in 2038 all coal fired power plants will also be discontinued. Germany in the context of decarbonization has planned to reduce fossil fuels, especially coal in its power plant. The percentage of nuclear power plants in Germany is 3.6% or about 8 GW and this requires immediate efforts to replace the electricity supply. Meanwhile, coal-fired power plants reach about 28% or more than 40 GW, and currently electricity production with coal is very expensive, due to the price of coal itself and carbon tax. Coal prices are around $150 but recently there has been a spike to $435 and a carbon tax of over $100 for every ton CO2 emitted. With these cost components, the price of electricity production for each MWh reaches around $220 (not including labor costs, maintenance, and so on), whereas if it is replaced with wood pellets the production price is only around $90 per MWh or approximately one third. Very cheap. Moreover, with the use of wood pellets, the sulfur scrubbing process (FGD = flue gas desulphurisation) can be reduced or even eliminated.

Biomass fuels such as wood pellets are carbon neutral so they do not increase the concentration of CO2 in the atmosphere, so that when using wood pellets for power generation and subsequent CO2 gas emissions, which are greenhouse gases, are captured and stored (CCS = Carbon Capture and Storage) so that they do not escape into the atmosphere, then this becomes carbon negative or reduces the concentration of CO2 in the atmosphere. The amount of CO2 gas that can be captured and soraged can also get carbon credit compensation, so that the coal power plants will get additional income. But without even having to use CCS, the use of wood pellets has reduced the cost of electricity production very significantly and is environmentally friendly. Meanwhile, if the power plant uses coal which is carbon positive and then CO2 emissions are captured and stored with CCS technology, this becomes carbon neutral. Of course, carbon negative efforts are better than carbon neutral.

On the other hand, Germany is famous for its technological products, especially industrial machines. A number of machine manufacturers for the production of wood pellets also come from Germany, such as Muench, Salmatec and Kahl. These machines are widely used for the production of wood pellets around the world and are reliable. It is possible that later the machines for the production of wood pellets will be imported from Germany and wood pellet products from Indonesia will be exported to Germany. This is in accordance with the potential advantages of each country. Indonesia with a land area of 1.91 million km2 with a lot of available land and being in the tropics has great potential as the world's main producer of wood pellets.

Currently about 55% of the fuel for power generation in Germany uses natural gas originating from Russia, and currently war is breaking out between Russia and Ukraine. The issue of Germany's alignment may affect the supply of natural gas from Russia to the country due to the war. Conversion from coal power plant to wood pellet power plant is not difficult and does not require a large investment, so this conversion is the most realistic solution. With the number of coal-fired power plants in Germany more than 100 units or about 1/3 of the electricity supply, so the need for wood pellets will also be very large if the power plants switch to wood pellets.

Build a Large Capacity Wood Pellet Factory, 5k tons/month Up

A large capacity wood pellet factory has a greater risk than a small capacity wood pellet factory. At the factory the production target becomes an important benchmark in addition to the quality of the wood pellets, of course. The consequence is the use of reliable production machines so that the production target can be achieved. Whereas in small capacity wood pellet factories, usually with small production, with short working hours the quality of the production machines is not as good as for such large capacities, so the investment for purchasing machines is also cheaper. Ability to work continuously with long working hours, minimum downtime, as well as stable output and product quality. These high-performance production machines usually have high “flying hour” so they can be relied on. Although the price of the tool is more expensive, it is still an option because the goal is achieved, namely the quality and quantity of wood pellet products according to the plan.

In general, a manufacturer of production equipment or machinery and especially wood pellets does not make from A-Z or all of its equipment (complete line). In general, they are specialists in only one or several equipments, especially the pelletiser / pelleter because it is the heart of the wood pellet production. While other equipments is made by other companies. When the production equipment or machine manufacturer offers a complete line unit for the production of wood pellets, they mean that they have added a number of supporting equipments from several of their network vendors. So is it possible if you want to make your own wood pellet factory according to your own wishes or do customization so that the equipment from a number of vendors is assembled by yourself so that the wood pellet production line is complete? Of course you can, but it requires a number of special skills or is like making your own car with equipments or components from many vendors. For example, assembling a number of these machines and even though they are from well-known engine manufacturers, they may not provide optimal performance because do not know their characteristics including the compatibility.

Although basically to get the best level of performance with a high level of efficiency but looking for the best combination not an easy thing. The price factor is also another variable to get the best combination. Experienced machine providers or sellers can provide according to the buyer's wishes, especially with a limited budget but want excellent performance. The higher “the flying hour” or the experience of the machine provider, the better in providing the offer because they already know the characteristics of each of the equipment. Installation, commissioning, training to after sales service are the next considerations. In the large wood pellet industry, customization of equipment from various vendors making production equipment to the safety aspect is a common thing. Moreover, the selection of the equipment is also based on the experience of wood pellet factories that are already operating. Customization is indeed something unique that is much influenced by previous experiences.

Previous experience with a certain equipment manufacturers is an important experience to determine the performance or characteristics of an equipment. Of course, it is very difficult to know all the characteristics of the equipment available on the market because there are so many manufacturers of equipment providers, the location of the equipment providers and the ability to handle a wood pellet project. In addition to technical factors, human relations factors also play a role in this, especially the success stories of previous projects. Upgrading equipment is usually become an entry point for collaboration with other vendors, especially since the previous vendor did not have this capability, for example, to increase the efficiency and flexibility of raw material belt dryer used to replace rotary dryer due to better drying capabilities, or certain hammer mill that also have certain capabilities and so on. And especially if you already have long experience with them before.