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Wood fuel pellets production

11-09-12 027Biogran Ltd. currently being a part of Russian Wood Alliance Ltd. started its activities from development of design projects for wood pellet plants in Russia. At this stage the engineers studied equipment, designs, technologies. In 2003 - 2004 it was still too early for that business in Russia. So we decided to have a look at the possibility of building a plant of our own to be used as a demonstration plant and to learn more about not only designing the plants, but also about production.

So we decided to do a feasibility study and came to a conclusion that we could build a plant with an annual  capacity  of up to 15 000 tons of pellets, considering  some 45 sawmills within and around the city and estimation of their production volumes. We took into consideration winter period production volumes which traditionally decrease and sawdust consumption volumes which increase. We also considered only 2/3 of existing sawmills as suppliers, so it added to security in terms of supply.

Then we found a land lot which had all the necessary infrastructure including water supply, sewage, electricity and natural gas pipe. Then Biogran Ltd. evaluated a possibility of construction of a wood pellet plant with given production volumes; we made a plant plan and compiled a specification of equipment.  We personally visited some 45 sawmills in and around the city and found out that sawdust and wastes posed a major problem for most of the sawmills.

 Some sawmills utilized them as a fuel for their burners, but the burners were outdated and ineffective, and anyhow the sawmills produced much more sawdust then they used. Small sawmills had to pay money for the sawdust to be removed by independent truckers. The sawdust mostly was dumped along the roads or somewhere in the woods. It did considerable harm to the ecology in the region. So the construction of a plant which used sawdust and rejects as a raw material would help ecology, remove the problem for the independent sawmill operators. All the parties involved in it were interested – city government would get rid of unauthorized dumps, firemen were interested in reducing forest fire hazard, sawmill operators would avoid problems with the authorities and could clean their sites, the region would have almost unlimited supply of fuel new to the region. It also corresponded with the Karelian government’s program of switching small burners throughout Karelia from oil to the local renewable fuel.

 So during our research we found out that there is a second hand complete pellet plant for sale in Finland. We visited the seller and concluded the contract. It took 1,5 years to get all the permits – there were about 50 of them and we started actual construction in 2006. In August 2007 the construction was finished and we continued to assemble the equipment. The production started in April 2008.  

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While organizing sales we consider the consumers’ geographical position, distribution logistics and pay attention to the groups of consumers.

Due to the proximity of the Finnish-Russian border and the twenty-four-hour working passing points most volumes are delivered with motor transport. Russian Wood Alliance Ltd. organizes deliveries of pellets in big bags on FCA and DAP terms.

During summer period (May-October) we have the opportunities to provide shipment from Petrozavodsk Port, and all the year round shipment from St. Petersburg and Vyborg Ports. Delivery by vessel shipments is realized on the basis of CIF terms.

Year 2011 in review