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Pellet Presentation

G
Gregorio

Uruguay has large volumes of wood available for industrial processes, including eucalyptus and pines. Almost 4.8 million cubic meters could be used to produce wood pellets. A minimum size pellet plant would cost $2.5 million to establish and have a 20 year lifespan. Economic analyses show wood pellets could be profitable, with a $74 per ton profit after expenses if sold for $190 per ton in Europe. However, using pulpwood is currently not viable due to high wood costs from paper mill expansion. Instead, waste wood after harvesting could be used, ensuring a steady 200,000 cubic meter supply for a 25,000 ton per year pellet plant.

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Wood Pellet produced from pulpwood in Uruguay?
Uruguay Wood available for industrial processes 2010. Total m3 Eucalyptus 8.739.117 Pines 801.535 Total 9.540.652
Destiny of the wood Harvested Energy 52% Paper mills 31% Sawmill 17% Almost 4.8 millions of cubic meters of wood are available to produce wood pellet.
Economic Studies Minimum size plant: 25.000 tons/year. Cost of wood pellet plant*: USD 2.500.000 Useful Life: 20 years * Provided by CPM. * Installation and operational costs are not included.
Economic Studies This economic study is focus in the raw material and transportation. These 2 items are the most sensitive variables in the wood pellet production. Cost per green ton. U$D 60 Cost of Delivered the green ton *1. U$D 6 Cost of delivered the wood pellet to Europe per ton *2. U$D 50 *1 Fifty kilometers of distance from the plant. *2 Exportations to Europe in a 40即full container.
Resume of Economic Studies Profit per tone of wood pellet Ton. Selling Price: $190 Green ton Cost in plant: $ 66 Delivered cost to Europe: $ 50 $74 $74/ dry ton of wood pellets to cover all variable costs (electricity, water, workers, taxes, etc.) and provide a profit margin.
Conclusions We conclude that at the present, because of the expansion of paper mills, is impossible produce wood pellets from pulp wood, because the cost of the wood is raising. We consider that the best way to produce wood pellet in Uruguay is using the waste wood, after the harvest operation. The main goal is to assure the volume of waste wood. Considering that we need around of 200.000 cubic meters of waste wood to produce 25.000 tons of wood pellet per year.
gaznarez@breedmeat.com www.breedmeat.com

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Pellet Presentation

  • 1. Wood Pellet produced from pulpwood in Uruguay?
  • 2. Uruguay Wood available for industrial processes 2010. Total m3 Eucalyptus 8.739.117 Pines 801.535 Total 9.540.652
  • 3. Destiny of the wood Harvested Energy 52% Paper mills 31% Sawmill 17% Almost 4.8 millions of cubic meters of wood are available to produce wood pellet.
  • 4. Economic Studies Minimum size plant: 25.000 tons/year. Cost of wood pellet plant*: USD 2.500.000 Useful Life: 20 years * Provided by CPM. * Installation and operational costs are not included.
  • 5. Economic Studies This economic study is focus in the raw material and transportation. These 2 items are the most sensitive variables in the wood pellet production. Cost per green ton. U$D 60 Cost of Delivered the green ton *1. U$D 6 Cost of delivered the wood pellet to Europe per ton *2. U$D 50 *1 Fifty kilometers of distance from the plant. *2 Exportations to Europe in a 40即full container.
  • 6. Resume of Economic Studies Profit per tone of wood pellet Ton. Selling Price: $190 Green ton Cost in plant: $ 66 Delivered cost to Europe: $ 50 $74 $74/ dry ton of wood pellets to cover all variable costs (electricity, water, workers, taxes, etc.) and provide a profit margin.
  • 7. Conclusions We conclude that at the present, because of the expansion of paper mills, is impossible produce wood pellets from pulp wood, because the cost of the wood is raising. We consider that the best way to produce wood pellet in Uruguay is using the waste wood, after the harvest operation. The main goal is to assure the volume of waste wood. Considering that we need around of 200.000 cubic meters of waste wood to produce 25.000 tons of wood pellet per year.