TECHNO-FINANCIAL ANALYSIS OF WOOD PELLET PRODUCTION IN THE PHILIPPINES

Abstract

A techno-financial analysis was performed to determine production cost of wood pellets manufactured in the Philippines using woody biomass as feedstock. Capital and operating costs of the pelleting operation were estimated using three framework conditions. Effects of plant capacity and price of feedstock on production cost were determined. Results showed that wood pellets could be economically produced in the Philippines with production cost of about 88–92 USD tonne^-1 at production rate of 1 tonne hour^-1 using woody residues such as sawdust and shavings at a price of 30–40 USD tonne^-1. Specific cost of pellet produced could significantly be reduced at a higher plant capacity. Cost of feedstock, equipment and personnel were the major cost factors in pellet production. Pellet production cost was significantly influenced by production rate and cost of raw materials.