Table of contents

1. Project description
2. Production plan
3. Mrket analysis and possibilities of sale
4. Technical-economical basis
1. Project description .
The realization of the project of bio fuel brick production from wood work waste has several targets. The first one is utilization of branch’s waste not resorting to negative for the environment burning or waste burial. The second – getting profit by selling the bio fuel obtained in the production process.
Project represents the launch of two fuel brick production lines including raw material preparation for recycling and organizing the warehouse for primary and end-products.


  1. Production plan .

Furl brick production includes the following stages:

  1. Delivery and stocking raw materials for the future supply to the production line.
  2. Grinding big fraction into wood chip (when recycling round timber)
  3. Regrinding of raw materials for getting small fraction 3-5 mm.
  4. Decreasing the natural dampness of raw materials to suitable for bricking
  5. Brick production on press-extruder or pellet production on mini-presses – granulators.
  6. Pachaging and stocking the ready products for future sale.

Production line set and equipments purpose (one of the options):

  1. Chopping machine for big fraction(hunch, eased arris  grinding)
  2. Hammermill (grinding to 3-6 mm fraction).
  3. Three boilers dryer (material dampness reduction).
  4. Press extruders (end product production).

Staff. To service two production lines there should be 6-8 people of unqualified staff, that are responsible for moving the material between the lines knots, stocking the ready production and 1 qualified worker that has finished the training by our company’s employees, that is responsible for technical servicing of the equipment.

  1. Market analysis and sales possibilities .

End product of the production line, fuel brick or fuel pellet, are used as solid fuel for mantelpieces and ovens of any kinds including solid fuel boilers and systems of heating. As fuel bricks are eco-friendly and burn practically without any smoke, they could be ideally used for heating living quarters, saunas, tents, greenhouses. High heat potential and portability allows a fuel brick to compete successfully with the traditional fuel – wood and coal. Annually a stable tendency of solid boilers increase in Russia is viewed (about 40% a year) which shows the formation of inner market of brick fuel. Besides, the European companies demand for this type of fuel because of the absence of raw material basis in Europe. The main target audience for brick fuel sale can be stock buyers that are occupied with the further retail sales to the ultimate buyer, supermarkets, petrol station networks with shops, boilers companies, exporters, foreign enterprises, ultimate consumers. Today the minimal stock price on the conditions of ex stock saler is 4500, 00 roubles for the regions and about 5200, 00 for Moscow and the majority of big regional centres. Retail price on condition of packaging into small containers to 50 kg can reach 10000 roubles a ton. The increased demand on this type of fuel in the regions that are not gas-supplied should be noted. The stock price for export contracts on cio-fuel sales almost equals the price on the inner market but ot should be taken into account that the requirement to the bricks quality are higher for foreign consumers (in particular to ash-content figures). On the basis of the above-stated to indicative technical-economic justification stock price of the minimum of 4500 roubles was taken.
4. Technical-economical justification of the production
1) cost calculation of 1 ton biofuel for two lines with the total productivity to 1000 kg/hour:Расчёт себестоимости 1 тонны биотоплива, для двух линий общей производительностью до 1000 кг в час:

Cost item
Measurements Quantity Cost items/roubles Price/roubles
Material m3 4 100,00 400,00
Electricity kWt/hour 180 4,60 828,00
Salary тн/hour 8 90,00 720,00
Raw materials delivery cost м3 4 10,00 40,00
Related expenses        
Transport, packaging, other       350,00
Total (expenses for one ton)       2 338,00

In the given calculation coats for production of 1 ton bio-fuel are shown. On the basis of average electricity cost – 4,60 rub/kWt with VAT, using paid labour for 8 workers with awarage monthly salary of 11000 rub.
2)The calculation of economic effect (profit) and cost-effectiveness of the production ( Расчёт экономического эффекта (прибыли) и рентабельности производства. (bulk selling price ~ 4500 rub./tun)

Item Measurement Quantity Cost 1 pc/rub Price/rub
Total sum of monthly expenses        
Production in 2 shifts for 8 hours Ton 16 4500,00 72000,00
Production in month/2 shifts Norm/day 22 72000,00 1 584000,00
Total sum of monthly expenses        
Production in 2 shifts for 8 hours Ton 16 2338,00 37408,00
Production in month/2 shifts Norm/day 22 37408,00 822976,00
Total( gross monthly profit)       1 584 000,00
Total (gross monthly expenses       822 976,00
Total (net profit)       761 024,00

3) The paying-off period.
From the calculation of the commercial offer the cost of investment into the production is assumed to be on the level of 4 900 000 rub.with VAT. On condition of preserving the given production volume and taking into account the minimal market price of the biofuel – 4500 rub/ton, the monthly profit of the project is ~ 761024,00 rub. with VAT.
Consequently, the period will be:
4900000,00 / 761024,00 = ~ 6-7 months

 To set the production for 600 kg/hour (minimum) the following is required from us:

А) To set the production of "Pini-Key” type bricks for 500 kg/hour (minimum-for wood materials with dampness 70%, if less damp, the productivity will greatly increase), it is required from us:

  1. Chopping machine with cyclone (27.5kWt)= 275 000
  2. Drying machine АКS-3 (3 boilers, 18 kWt)= 905 000
  3. Pree-extruder 22,5kWt 2pcs. х 445 000 = 880 000
  4. Additional forming cylinder 2 pcs. х 9000= 18 000
  5. Additional screw 2 pcs. х 9000= 18 000
    Total (rub) = 2 096 000 (with VAT)

Б) To set FUEL PELLETS production for 500 kg/hour (minimum for wood materials with dampness 70%, if less damp the productivity will gereatly increase) it is required:

  1. Chopping machine with cyclone (18kWt)= 275 000
  2. Drying machine АКS-3 (3 boilers, 18 kWt)= 905 000
  3. Granulator KL600 + screw with CVT =750 000
    Total (rub) = 1 930 000 (with VAT)

    Additionally for the line launch it is necessary to prepare the area, install electricity, buy welding machine, minimal reapir kit and other (for about 100 000 rubles).