{"id":56027,"date":"2023-04-29T18:53:10","date_gmt":"2023-04-29T13:23:10","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=56027"},"modified":"2023-04-29T18:53:11","modified_gmt":"2023-04-29T13:23:11","slug":"how-to-start-biomass-pellet-manufacturing-business","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/","title":{"rendered":"How to Start Biomass Pellet Manufacturing Business?"},"content":{"rendered":"\n<p>Densified\nBiomass, also called biomass pellets, is an emerging form of biomass fuel that\ncan be made fromagricultural\nBiomass, wood wastes, commercial grasses and residues from farms, yards or\nforests. These biomass pellet manufacturing businesses are in huge demand afterthe \u2018National Mission on use of Biomass in coal-based thermal power\nplants\u2019 that was launched on 12<sup>th<\/sup>&nbsp;July 2021, mandating all thermal\npower plants (TPP) in the country to use 5% of biomass pellets for co-firing\nwith coal. Co-firing is an option for converting agricultural waste to\nelectricity by adding agricultural biomass as a partial replacement fuel in\ncoal-based boilers. Biomass co-firing is globally recognised as a\ncost-effective method for decarbonising a coal fleet. Biomass is likely to\nbecome an important fuel in the sustainable energy approach of India in the\nfuture. As per some reports, using agricultural biomass to produce fuels will\naccount for more than 40% of all renewable fuels being used in the near future.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/#Governments_Vision_towards_The_Use_Of_Biomass_Fuel\" >Government&#8217;s Vision towards The Use Of Biomass Fuel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/#Pelletisation_Business_using_Biomass\" >Pelletisation Business using Biomass<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/#How_to_Start_a_Biomass_Pellet_Manufacturing_Business\" >How to Start a Biomass Pellet Manufacturing Business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/#Government_Assistance_for_setting_up_Biomass_Pellets_Plants\" >Government Assistance for setting up Biomass Pellets Plants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/#Market_Opportunities_in_Biomass_Pellet_Manufacturing_Business\" >Market Opportunities in Biomass Pellet Manufacturing Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-to-start-biomass-pellet-manufacturing-business\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Governments_Vision_towards_The_Use_Of_Biomass_Fuel\"><\/span>Government&#8217;s Vision towards The Use Of Biomass Fuel<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Biomass policy of the country was revised in October 2021, according to which a 5-10 % co-firing in power plants was made mandatory weight. In the Union Budget of 2022, the Ministry of Power made co-processing mandatory throughout the country to address the issue of air pollution in India, particularly in the North Indian regions of Delhi NCR. The government has also taken the following steps in aiding the setup of the biomass pellet manufacturing business.<\/p>\n\n\n\n<ul><li>A customised window has been designed in the form\nof Government e-marketplace (GeM) portal for biomass pellet procurement.<\/li><li>Biomass has been notified as a priority sector\nlending item by the RBI. This enables for easier and faster availability of\nbank loans to Biomass pellet manufacturing business setup. The SBI has launched\na dedicated scheme to provide long-term loans to pellet manufacturers.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pelletisation_Business_using_Biomass\"><\/span>Pelletisation Business using Biomass<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Pellets and briquettes are two different products commonly used as a convenient and usable form of Biomass-derived fuel. Pelletisation and torrefaction are two popular techniques that can be used to produce biomass pellets. Pelletisation is a process in which Biomass is compressed into small pellets of uniform size and shape. The biomass pellet manufacturing business involves grinding and drying the raw biomass material, which is then compressed using a pellet press. Biomass pellets have no contamination, are cheaper than coal, diesel and natural gas, and the raw material for its production is abundantly present in almost any corner of the country. Therefore, it is increasingly being accepted as a replacement for conventional fuels and gaining the attention of entrepreneurs who want to base their business in and around agricultural waste processing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages of Setting up a Biomass Pellet Manufacturing Business<\/h3>\n\n\n\n<p>Biomass\ndemand in many industries escalated since the Commission for Air Quality\nManagement (CAQM) in NCR and adjoining areas directed the industries in Delhi-NCR\nto switch to cleaner fuels by September 2022. Following are some of the\nadvantages of starting a biomass pellet plant in India.<\/p>\n\n\n\n<ul><li>Biomass pellets have broad applications and can be\nused as fuel for homes and industrial facilities. They are renewable and have a\nvery low carbon footprint. Bio pellets are efficient and have a high energy\ndensity too.<\/li><li>No external binder is required in the pelletisation\nprocess, which makes the pellets more environmentally friendly. The pellets\nhave a high energy density, making them more efficient to transport and store.<\/li><li>Biomass co-firing helps to minimise greenhouse\ngases emission because this process reduces net CO<sub>2<\/sub>, CH<sub>4<\/sub>,\nSO<sub>X,<\/sub>&nbsp;and often NO<sub>X<\/sub> emissions, compared to the\ncombustion of coal.<\/li><li>In contrast to other renewable energy sources, biomass\nis widely available in the country.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Start_a_Biomass_Pellet_Manufacturing_Business\"><\/span>How to Start a Biomass Pellet Manufacturing Business? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are\na few essential factors that must be kept in mind when starting a biomass\npellet manufacturing plant<strong>. <\/strong>Let\u2019s\nsee the crucial stagers in setting up a manufacturing unit<\/p>\n\n\n\n<ul><li><strong>Step1: Formulating Business Plan<\/strong><\/li><\/ul>\n\n\n\n<p>A\ndetailed business plan and market survey is important for any business setup.\nIn case of Biomass pellet manufacturing Business, it is essential to have a\nreliable source of bio-waste supply for a continuous supply of raw material. At\nthe same time, finding customers for the pellets is also important. The\nfollowing points must be considered in a business planning<\/p>\n\n\n\n<p><strong>Raw Material: <\/strong>Raw\nmaterial is sourced from agriculture fields and wood processing units like the\npaper and pulp industry<strong>. <\/strong>It may\ninclude<\/p>\n\n\n\n<ul><li>Straws from crops like rice, wheat, jowar, ragi, millet, barley, gram, khesari etc.<\/li><li>Stalks from bajra, castor, arhar, cotton, jute, maise, sunflower, mustard etc.<\/li><li>Spent cobs from corn, maise, ragi, bajra etc.<\/li><li>Other agricultural waste like cane tops, tea plant wastes, cane trash, wood waste, leaves, needles and husk etc.<\/li><\/ul>\n\n\n\n<p><strong>Space:<\/strong> for a small biomass pellet\nmanufacturing plant, a decent area will be required for storing raw materials,\ninstalling the machinery and storing finished products. This can be done in a\n500 to 1000 sq. ft. space in case of a small biomass pellet manufacturing unit.\nFor a large-scale business, the space requirement can be anywhere around 5 to\n10 times that of the space requirement for a small setup.<\/p>\n\n\n\n<p><strong>Location and utilities<\/strong>: the\nlocation of the biomass manufacturing plant must be decided by careful\nexamination of the source of the raw material to reduce the transportation\ncost. As pellets are dries and compact, the weight is significantly reduced and\ncan be transported easily. Therefore, a good connectivity through the road is\nalso desired while finalising the location. Apart from this uninterrupted\nsupply of electricity is also important as the process is largely automated.<\/p>\n\n\n\n<ul><li><strong>Step 2: Sourcing of Machinery<\/strong><\/li><\/ul>\n\n\n\n<p>There are a number of domestic manufacturers that manufacture semi-automatic to fully automatic and different capacities. The prices of pelletising mills start from 85,000 and can go up to 35 lakhs per piece or even more, depending on the production capacity features and technical capabilities. Other required machines will include<\/p>\n\n\n\n<ul><li>Wood Chipper<\/li><li>Hammer Mill<\/li><li>Dryer and Cooler<\/li><li>Screening and Packaging Machine<\/li><\/ul>\n\n\n\n<ul><li><strong>Step 3: Applying for Licences and Permits<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Trade Licence from the local municipal Corporation<\/strong>: <strong><a href=\"https:\/\/corpbiz.io\/trade-license\">Trade license<\/a><\/strong> is a certificate\/ document that permits an entity to carry on the business or trade activities in a particular municipal limit for which it is issued. The provision of a trade license is mandated by the respective State government to regulate and monitor various trade activities.<\/p>\n\n\n\n<p><strong>Factory\u2019s Licence: The\nFactory Act of 1948<\/strong><sup><a href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/1530\/1\/A1948-63.pdf\"><strong>[1]<\/strong><\/a><\/sup> requires all establishments falling under\nthe definition of Factory to register the manufacturing unit with the municipal\nauthorities.<\/p>\n\n\n\n<p><strong>Fire NOC<\/strong>: Fire safety NOC, also called <strong><a href=\"https:\/\/corpbiz.io\/fire-department-noc-in-india\">Fire NOC<\/a><\/strong>, is issued by the Fire department after verifying and auditing the resistance of the building to fire and other installation of fire safety mechanisms. This is also to ensure that the design of the facility is at par with the fire safety standards stated by The Bureau of Indian Standards (BIS).<\/p>\n\n\n\n<p><strong>Pollution NOC: <\/strong>&nbsp;A biomass pellet manufacturing business that\nmanufactures biomass briquettes through sun drying, without using toxic\nhazardous chemicals, is categorised under the green category and will require Pollution\nNOC in the same category. The documents required for this NOC will include the\nfollowing.<\/p>\n\n\n\n<ul><li>Duly filled Application Form on the OCCMS portal<\/li><li>Undertaking in prescribed format<\/li><li>Site or layout plan with a roadmap <\/li><li>Manufacturing process including a list of machinery, the capital cost of land, building, and machinery, water balance, its requirement <\/li><li>Detailed Project Report with details of effluent, emission of air discharge, solid waste management plan, raw materials usage, list of finished products<\/li><li>Proof of land ownership\/rent Agreement (rent receipt, land deed, lease document, etc.)<\/li><li>Industry Registration\u00a0Documents<\/li><li>Consent Fee<\/li><li>Any other Document specified in the Application Form<\/li><\/ul>\n\n\n\n<p><strong>Other Licences\nApprovals Required For Biomass Pellet Manufacturing Business<\/strong><\/p>\n\n\n\n<ul><li><strong><a href=\"https:\/\/corpbiz.io\/gst-registration\">GST registration<\/a><\/strong><\/li><li>IEC code in case of Export<\/li><li><strong><a href=\"https:\/\/corpbiz.io\/msme-registration\">MSME Registration<\/a><\/strong><\/li><li>Solid Waste Management Authorisation<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Cost of Setting up A Biomass Pellet Plant in India<\/h3>\n\n\n\n<p>For a\nsmall state biomass pellet manufacturing business that is only making wood\npellets, the investment required can be anywhere from 5 lakhs to 15 lakhs. But\nfor an ideal output that is around of 500 kgs per hour, including the cost of plant\n&amp; machinery, that will include the cost of the shed (for dry storage),\nrunning cost (cost of labour and transportation) of power, and working capital for\na land size of 1000 sq. feet., a minimum investment of around INR 30 lakh will\nbe required. For a state of art biomass pellet manufacturing business that can\nperform pelletising, briquetting of Biomass etc., and the estimated cost will\nbe around five crores or more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_Assistance_for_setting_up_Biomass_Pellets_Plants\"><\/span>Government Assistance for setting up Biomass Pellets Plants<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GOI\nis stressing on increasing the capacity of pellet manufacturers. Several trainings\nfor biomass pellet manufacturing have been conducted by the National Power\nTraining Institute (NPTI) all over the country. More than 36 gigawatts of\ncoal-based thermal power capacity has successfully co-fired Biomass in the\ncountry. Following are some financial subsidy schemes issued by the CPCB and\nMinistry of New &amp; Renewable Energy to encourage new entrepreneurs to set up\nbiomass pellet manufacturing businesses:<\/p>\n\n\n\n<p><strong>&nbsp;&#8220;Biomass Programme&#8221; towards\nassistance in setting up the biomass plant<\/strong><\/p>\n\n\n\n<p>MNRE Bio\nEnergy Schemes in which Biomass Pellet Manufacturing businesses will be\nprovided with an assistance of Rs. 9 Lakhs per Metric Ton Per Hour (Mtph) upto\nRs. 45 Lakhs per plant <\/p>\n\n\n\n<p><strong>&#8220;One-time\nfinancial assistance for setting up pellets plant in NCR\u201d <\/strong><\/p>\n\n\n\n<p>Under\nEnvironment Protection Charge funds for Non-torrefied plant set up, CPCB\nannounced to provide financial support of Rs. 14 Lakhs per ton of production\ncapacity per hour subject upto Rs. 70 Lakhs and for Torrefied plant set up and\none-time assistance of Rs. 28 Lakhs per ton of production capacity per hour\nupto Rs. 1.40 Crores. A corpus of Rs. fifty crores have been earmarked for\nutilisation through the guidelines.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Opportunities_in_Biomass_Pellet_Manufacturing_Business\"><\/span>Market Opportunities in Biomass Pellet Manufacturing Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ndemand for biomass wood pellet industry is expected to grow substantially in\nthe coming years. According to some reports, the global pellet market was\nvalued at USD 8.23 billion in 2022 and is expected to grow at a CAGR of 6.75\nper cent during 2022-2023<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The surge in demand for biomass pellets has created an immediate requirement for the biomass pellet manufacturing business. Biomass pellet suppliers can also cater to industries like textile, metal-based, food processing or in the open market. The demand from thermal power plants is also expected to rise exponentially after the remaining plants complete their trial runs. According to the power ministry&#8217;s policy on biomass utilisation, nearly 0.25-0.3 million tonnes of biomass pellets can generate 1 GW of electricity at 7 per cent co-firing in thermal power plants, which is a hint at the immense future demand for these pellets in the future and therefore, biomass pellet manufacturing businesses, in every region of the country.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/overview-of-mineral-beneficiation-including-pelletisation\/\">An Overview Of Mineral Beneficiation, Including Pelletisation<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Densified Biomass, also called biomass pellets, is an emerging form of biomass fuel that can be made fromagricultural Biomass, wood wastes, commercial grasses and residues from farms, yards or forests. These biomass pellet manufacturing businesses are in huge demand afterthe \u2018National Mission on use of Biomass in coal-based thermal power plants\u2019 that was launched on [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":56028,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3161],"tags":[3541],"acf":{"service_id":"220"},"authorName":"Shalin Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/05\/MicrosoftTeams-image-16.jpg","authorDescription":"Shalin is a Postgraduate in Applied Sciences from the University of Delhi with a specialisation in Wildlife Forensics. He has an in-depth knowledge of the environment domain and keen interest in curating informative content. Some of his research work includes research on environmental science and transboundary wildlife offences.","postViews":16249,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56027"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=56027"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56027\/revisions"}],"predecessor-version":[{"id":56030,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56027\/revisions\/56030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/56028"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=56027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=56027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=56027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}