wood-pellets-indonesia-2022 (1)

2022 VERSION INDONESIA REPORT : Wood Pellets Production and Wood Pellet Indonesia

Wood pellets (Wood Pellet, WP) into fuel (BB) prima donna at the moment especially in a country that has 4 seasons as a fuel substitute for coal (in part / entirely) in a coal fired power PLANT, air dryer, biomass stove, and drying on the services of laundry. Meanwhile, the marketing of WP in the country are regulated with the model of the package with the stove or burner for used in the household (replacement of LPG), the plant-food processing plant such as chicken, tofu, gudeg Jogja, restaurant / food stalls, furnace dryer tea / tobacco / corn / fish, entrepreneurs fried foods, etc. Herer we offer the wood pellet indonesia report for customers who need this, read more for your pellet making business.

The high demand for WP in the LN caused by the coal export destination countries (south korea, Japan, China, and India) are slowly switching to WP are of good quality, environmentally friendly, and renewable (evident from the demand of wood pellets in the international market is increasing rapidly). On the other hand, China is gradually also beginning to ban the use of coal (low calorie) for its citizens (because of the pollution and emissions of a high sulfur). Australia and the U.S. to minimize the use of coal. Indonesia is also slowly replacing the use of coal with wood pellets. (ISO 8021:2014).

Rising coal prices due to the tightening of production year 2016, causing the Coal Reference Price (HBA) of Indonesia in the international market (November 2016) start metermites up to$84,89/ton previously, (December 2016) US$69,07/ton, even through USD100/ton in December 2016, ie be US$101,69/ton. However, in the year 2019, HBA dropping back as in the year 2016, and it can be seen in the image above (6322kcal/kg, FOB vessel). It was due to the decline in demand from China and India, and the influx of coal Russian to the markets of Asia, China, and Australia. Energy and mineral resources set coal Production in 2019 about 489jt tons. Earlier th 2018 pegged 485jt tons, but the realization of 557 million tons.

demanding trend of wood pellets in indonesia
demanding trend of wood pellets in indonesia

On the other hand, about 50 of the company become partners of PT PJB build the power PLANT the mouth of the mine (MT) (total of 6GW) with environmentally friendly technology sub-critical on the boilernya in order to reduce the amount of exports (which in turn will raise the price) at once to speed up the program realization of the power of 35,000 MW. Example: power PLANT MT Jambi (2x300MW); Riau (2x300MW); Sumsel 1, 6 (2x300MW, Tanjung Enim, 3jt tons of coal/year, 2026), 8 (2x260MW, Huadian Bukit Asam Power 45% + China Huadian 55%, Muara Enim, 5,4 million tons of coal/year); Kaselteng 3, 4, 5; Kaltim 3, 5 (200MW), 6, Muara Jawa; and United Tractors (2x15MW, central Kalimantan).

One of the utilization of coal is converting it to syngas (gas synthetic) through gasification technology (gasification plasma) to transform the syngas into electricity, or other substances such as methanol, DME, ammoniak, etc.

different use of agricultural waste
different use of agricultural waste

There are some of the reasons coal will be crashing by wood pellets:

  • Wood pellet is the BB of renewable (there is always, once can change the position of coal in future), and a friendly environment, while the coal is not renewable (consumable) and less environmentally friendly. Therefore, the utilization of coal in the international level berkurang for survivalp. So, there are opportunities to increase the supply of national electricity via BB wood pellets.
  • Calorie wood pellets is equivalent to kalori low coal.
  • The production of lower carbon than coal.
  • The cost of electricity produced wood pellets to replace coal equal to that produced natural gas which is of course cheaper than coal.
  • The staff required the power PLANT wood pellets (including the preparation of the infrastructure of wood pellets) more (add employment), which is about 3.480 people, while the coal fired power PLANT with the same power requires a staff of about 2.540 people. 2/10/2020 2/31
  • Demand for wood pellets is sustainable in the long term to motivate stakeholders to preserve and improve forest management, and develop critical land (former coal mines, gold, tin, nickel, etc.) into a forest of industrial plants special wood pellets (e.g. wood Kaliandra Mo (KM), Mahang / Macaranga Gigantean, Karamunting / Melastoma Malabatricum)
  • Demand for wood pellets that come from all corners of the world continue to flock to Indonesia. It should be utilized to improve the income of the community
  • Indonesia is actually capable of generating electricity biomass ~to 49.8 GW (Indonesia’s need for additional national power 35 GW). The potential of the biomass was around 146.7 million tons/year derived from the residue of rice (150GJ/th), rubber wood (120 GJ/year), sugar residues (78 GJ/year), residues of palm oil (67 GJ/year), and other organic waste (20GJ/yr).

As is known, the user’s WP world th 2013 (23.6 million tons) was recorded is the state of Japan, south korea, China (2 million tons), Europe (12juta tons) (also the largest emitters, namely Germany, Sweden, Latvia, and Portugal), the US (3 million tons), Russia (2 million tons) and Canada (3 million tons).

global regional wood pellet production in 2013
global regional wood pellet production in 2013

Although the countries of the WP users are able to produce their own, but they are still not able to meet the needs of the WP DN they (have to import), due to the growth of wood in the countries of the sub-tropical slower than in tropical countries. Example: in 2013, the European need of 19 million tons [10 (hot) + 9 (industrial)] (less 7juta tons), Canada (4juta tons) (less 1 million tons), Asia (Japan & South Korea) less 1 million tons. The second Asian country that will become an importer WP largest in the next decade (estimated to be about 5 million tons of th 2020). Th 2016, The Japanese import WP 400 tons (after the nuclear accident of Fukushima th 2014), while the Carousel need 1.7 million tons.

global regional pellet production
global regional pellet production

The production of the WP world approach 28juta tons (2015, for heat 15, the industry 13juta). Meanwhile,the marketing of WP global for generation of electricity and heat continue to grow by about 14.1% of per year. Tahun 2020, the need for WP is expected to soar to 80 million tons. Therefore, some countries, for example south korea, Japan, Europe (import ~14juta ton/2014), the U.S., and Canada tried to find the raw material supply to a tropical country which one of them to Indonesia. The following contoh price WP in Europe (Switzerland, Austria, and Germany) which can be seen in Gambar on top (~centEuro/kg). Month Sep 2018, the average price WP ENplusA1 in Austria is 236,5 EUR/ton.

pellet price in australia Germany and switzerland
pellet price in australia Germany and switzerland

Since 2012, the Carousel is targeting the use of Renewable Energy of at least 2%, and the year 2022 the use of biomass should enter the 10%, of which 60% comes from the WP. Feb 2015, the market is the Carousel need to supply more than 280,000 tons for the needs of the household and food & beverage industry. About 70,3% WP Carousel is a pellet imports (Indonesia only supplying >7% to the Carousel, precisely around 8.940 tonnes of 122.447 tons in the year 2012, and the rest is imported from Russia, Malaysia, and Vietnam).

the supply of wood pellets in carousel
demand of wood pellets in south korea

At that time, price CIF WP Indonesia airport tax (US$131/tons, under the Vietnam US$144/ton, and Malaysia US$141/tonne). Imports from Indonesia continued with the presence of kerma company Carousel Depian Co. Ltd. with state-owned PT Inhutani III (develop the forest industry plant 5000-8000Ha in Pelaihari, south Kalimantan via PT SL Agri in order to export the WP up to 100,000 tons, th 2015). In the future, some south Korean companies have been exploring the possibility of importing WP from Australia, Vietnam, Indonesia, Philippines, Malaysia, Thailand, Canada, and the US. The carousel requires a power PLANT using WP.

the supply of wood pellets in carousel
the supply of wood pellets in carousel

Import WP Carousel in 2014 and 2015 is seen in the side images. In that year, Indonesia exported WP 150,000 tons (Malaysia 60,000 tons), of which only about 4%. Meanwhile, palm kernel shell (Palm Kernel Shell) of the two countries it was exported to Japan in small quantities. The carousel itself importing WP with a price of around (109-135) Demand for wood pellets in south korea The supply of wood pellets to the Carousel 2/10/2020 3/31 Euro/ton (2015). At that time, Vietnam has been exporting WP to Carousel around 71%.

korea wood pellets import and export data 2015
korea wood pellets import and export data 2015

To pemilik land (hundreds/thousands of hectare) in Indonesia and are interested in the business of WP, please be careful against foreign employers (scalpers) who buy sawdust wood DN with cheap price, because they will exportin the form of WP to the Rok or Japan. You have to manufacture the WP itself in the DN and export itself to the LN.

The list: the Representatives of South Korea in Indonesia, the Indonesian Representative to the Carousel, the Agency / Association of Wood Pellet in the Carousel, and Pengusaha / Importir Carousel can be seen here (May 2014).

The consortium of Korea represented the CEO of GIMCO signed a cooperation (MoU) with the Kemendes PDTT (and PT Alam Bumi Cemerlang), in order to utilize the waste/weevil corn (3500-4500kCal/kg) (in 24 districts) into wood pellets to be altered so the electric village in the area of Transmigration, Labangka, Sumbawa, NTB. Weevil will be mixed with tree Gamal (4168kCal/kg, water content of 24%, ash content is 2.97%) and Calliandra (5000Ha) to be used as wood pellets and exported to south korea for fuel PLTBm Carousel. Investment USD400juta planted anyway to fund the factory of wood pellets 400.000 tons/year and PLTBm 30MW in Sumbawa.

utilize the wasteweevil corn (3500-4500kCalkg) (in 24 districts) into wood pellets
utilize the wasteweevil corn (3500-4500kCalkg) (in 24 districts) into wood pellets

Sawdust, rice straw/wheat, rice husk (3300kcal/kg), bagasse / bagasse (sugar-containing 2.5%, the calorific value of 1.825 kcal), stalks of corn/sorghum, leaf litter, grass, twigs, Palm EFB (tankos palm), and parts of the plant that have been considered waste can be a source of WP. Businesses WP began to grow wood quickly harvest minimal maintenance, and high energy content as the waste mixture tsb. For example: Petai china (Leucaena leucocephala), red calliandra (KM) (Caliandra calothyrsus), and Gamal (Gliricidia sepium). The purpose of making the WP is the calorific value of wood waste is going to be improved in order to BB-calorie approach coal (5.000 – 6.000 kcal), which is about 4.200 – 4.800 kcal with ash content about 0.5-3%.

Kaliandra red (KM) is the raw material of the best WP compared to Chinese banana, gamal, and sengon buton from the side of the pace to grow. The energy contained in the KM 4600kkal/kg, do 7.400 kcal/kg, 1 kg of pellets KM is equivalent to the thermal energy of 5.35 kWh or electricity 1,355 kWh. Enrichment of the soil through the fixation of nitrogen in the soil, and the weight of the type, so that the ash content can be lower. Besides, the lifespan of KM can be up to 29 years of planting, and can be harvested 2 times a year, so it needs 1.5 years to generate electricity. One Ha KM can produce wood 20-65m3/year or 20-35ton/year. Planting density of a minimum of 5000 trees/Ha (spacing of 1x2m), can be trimmed as high as 1m above ground level on a recurring basis every 4 months (3 x a year) when fertile and a lot of rainfall. Under the stands of coconut (light of 60%), KM can be planted as a plant filler.

Calliandra Calothyrsus
Calliandra Calothyrsus

For a capacity of 100kW, the cost of investment of about Rp.5.5 billion (Jan 2017) includes the provision of critical land 30Ha (land rent Rp.1.5 M for 20 years, seedlings, and planting / maintenance of the 250,000 trees).

KM not only as raw material for the WP, the leaves as feed to livestock (high protein), and interest thereon as the fields of livestock bee (production of honey (honey white kaliandra) is derived from the nectar of flowers KM famous in the world. One Ha KM produce honey at least 1 ton/year (1000 kg x Rp. 50.000/kg = Rp.50million/yr = Rp.4.17 million/month), whereas in Europe it can reach 2 tons/th) for 15 years without treatment means. The Radius of the bees looking for nectar around 5km.

KM grow well at an altitude of 400-600m above sea level, pH~5, and a little water. The plant will also function as ground cover plants are (perdu) (fertilising soil / land conservation / anchoring erosion in sloping ground / soil mining such as tin, coal, gold, nickel, etc.) in order to avoid the flood and turn the land critical, dry, sandy, and barren, because it serves as a fertilizer of the soil, the roots of pests killed flew into the ground, and the delicate roots of the other that extends up to the surface of the ground. KM serves to maintain the sustainability of nature.

The bees suck the flower essence KM
The bees suck the flower essence KM

Some examples of the location of pn KM:

  • Gamal and calliandra planted in Sumbawa 5000 Ha.
  • 100thousand batang in critical land in the Wonogiri in collaboration with the Ministry of PDT;
  • P Singkep (Kep Riau) (in the land of critical former tin mines);
  • Gorontalo Utara (PT Citra Makmur kencana).
  • An example of the development of KM as a WP (ET) replacement of coal by nongovernmental organizations (no government assistance) is carried out in Butur (kab. Buton North, Prov. Southeast Sulawesi). Initially the nursery KM only 100,000 trees developed in Kulbar (excl. Kalisusu West) by the CHANGE (Movement of Fishermen Tani Indonesia) Butur, with a target of one million trees in the future. MoU with PT Energy Indonesia (factory WP) was signed to buy the MILES from the farmers.

The process of making wood pellets:

  • Prepare materials in advance
  • Put in the machine dryer-turn in order to decrease the water content until it reaches 10%
  • Enter the dry powder (that has been mixed with tapioca flour; don’t need to bagas, because it already contains sugar) for pressed and heated around 180 oC to the machine makers of the pellets with the end result WP cylindrically-shaped berdiamater 6-10 mm long, 1-3 cm, and a density of 650 kg/m3. Calliandra Calothyrsus The bees suck the flower essence KM 2/10/2020 4/31
  • Wrap/pack of, send to other parties

The characteristics of the product BB pellets

Pellet rods
Pellet rods

The basic ingredients of these pellets is, corn stalks, wheat straw, rice straw, peanut shell (4644 kcal/kg), corn cobs, twigs cotton, soybean stem, weeds (wild grass), twigs, leaves, sawdust, and other plant waste. After the raw material was crushed, then pressed, and printed, formed into a pellet shape to give the pressure between the roller and dies on the material. The density of the material was originally about 130kg/m3, but the density of the pellets ascending up on top of 1100kg/m3, so that makes it easy to be stored and ditranspor, as well as the performance of the fuel ascending.

Sawdust Pellets

The production line of sawdust pellets: purchase of raw materials, collecting materials, drying, pelletizing and packing. The water content of sawdust is around 30-45% and the price of raw materials around with 21.05 – 24,29 USD/ton. Terms of calorific value can reach 4.000 – 4.500 kcal.

Pellets Twigs

The production line of pellets twigs: the purchase of raw materials, crushing, drying, pelletizing, and packing. The cost of raw materials ~16,19 USD/ton. Calorific value of pellets twigs lower than sawdust pellets.

Pellets Twigs
Pellets Twigs

Procedure of production:

purchase of raw materials, drying, pelletizing, and packing. The quality of the material depends upon the period of planting. All materials can be stored efficiently in time, then dried, and pelletizing. The water content in sugarcane is about 20-25%. Pellets bagasse has high calorific value 3.400-4.200 kcal (before pelletizing only around 1825 kcal, and when the bagasse raw it only heated using the exhaust gas from the chimney of the kettle, the water content of pulp fell by 40%, and the calorific value becomes 2305kKal).

palm oil wood pellets
palm oil wood pellets

Pellets bagasse (bagasse) is bioenergy a new one. It can be used as a space heater, stove, hot water boilers and the industrial, PLTBm, and other. He serves as a substitute for firewood, coal, fuel oil, and LPG. Bagasse has an energy content and the quality of the fuel is high. Honey, ash content of ~6%.

The potential of bagasse in Indonesia is 30 tons/Ha/year. While, land area sugar cane (2014) of 447.000 Ha [63,46% are in Java, the rest is 36,54% outside of Java], then the potential of bagasse a total of about 13,41 million tons/year, which is the area of cropping decreased by 6% compared to year 2013, (470.198 Ha). Therefore, in order to meet the needs of the sugar DN and reduce imports of raw sugar, the Government set up a sugar-cane plantation additional as much as 500,000 Ha in southeast Sulawesi, P., Aru and Merauke, as well as building 10 new sugar factories DN. In the future, there will be additional bagasse of about 15 tons/year.

Pellets Bagasse
Pellets Bagasse

Solid waste of sugar cane is derived from the results of the strain of the nira in the rotary drum filter is called filter cake. When dried, the filter cake can be directly used as fuel in the kitchen for cooking. The filter cake is generally used for compost.

The selection of the Tread and the Budget the Cost of Pellet Mill Bagasse in Wood Pellet Indonesia

Tread mill bagasse should be located at the location of the raw materials are abundant, cheap and near the airport/port to facilitate the transportation of the product, so the cost of raw materials and other costs (labor, warehouse rent, cost management, etc.) can be saved as low. Aspects of the legality of the building and permit industry: TDI, SIUP, HO, IMB, etc. that are related need to be prepared. Certificate for export (SVLK) and the certificate of the product (for example from Sucofindo,and SGS) are also prepared.

The initial investment pellet mill bagasse around 112.414 USD with a capacity of 1 ton/h (the capacity can be increased up to 6 tons/hours to add the necessary equipment).

initial investment pellet mill bagasse
initial investment pellet mill bagasse

Investment building factories around the 19.271 USD with a floor area of 6.000m2.

Initial capital investments of equipment around 72.266 USD including dryers 24.089 USD, stranding cage Pellets Bagasse 2/10/2020 5/31 1.927 USD, electrical cabinet 1.927 USD, pellet machine (1 ton/h) 25.695 USD, etc.

Working capital around the 40.148 USD to initial storage of raw materials and pre-sales of the product.

When the market and the operation is stable, you can increase your investment. Dryer 24.089 USD can be used for 3 pellet mill, you can simply add both in Stranding cage, pellet machine, and conveyor. When the pellet mill more than three, then the dryer needs to be added and a truck forklift is necessary. Engine cooling needs to be considered depending on the circumstances of production.

Wood Pellet Indonesia Cost & Margin Analysis Of Pellets Bagasse

Business Target: 500 tons/month (beginning). When normal operation, the monthly production can be increased up to 1,500 tons or 3,000 tons. Annual products about 30,000 tons.

ROI Pellets Bagasse:

  • The price of raw material sugarcane bagasse: 19,45 USD/ton
  • Cost of transportation: 3,24 USD/tonne [packing fee and the cost of out]
  • Crushing: 0
  • The load electric dryer: 1,39 USD/ton [7,5 kV electrical machine drying 0.7 tons/hr]
  • The electrical load peletisasi: 11,67 USD/ton [90kW electric engine pellet 1 ton/j]
  • Packing: 5,19 USD/ton [25kg/sack; 0,13 USD/sack]
  • Workers-direct: 8,10 USD/ton [1 tool for 8 workers, 11,34 USD for 1 workers in one day]
  • The cost of tread: 5,33 USD/ton [19.434 USD for the use of 10 years]
  • The cost of the tool: 3,25 USD/ton [tool 80.976 USD for 26 days/month in 5 days of use]
  • Cost of care: 4,86 USD/ton [cost of die / eyes of the felts are worn out]
  • TOTAL cost: 62,48 USD/ton

The calculation of Earnings: total Cost: 62,48 USD/ton; selling price of pellets at the plant: 97,17 USD/ton; net profit for one ton of 34.69 USD. If the monthly production of 500 tons, the net profit monthly is 17.345 USD.

While, ROI Sawdust pellets

  • The price of the raw material sawdust: 22,67 USD/ton
  • Cost of transportation: 4,86 USD/ton [packing fee and the cost of out]
  • Crushing: 0
  • The load electric dryer: 2,08 USD/ton [7,5 kV electrical machine drying 0.7 tons/hr]
  • The electrical load pellet mill: 15,16 USD/ton [90kW electric engine pellet 1 ton/j]
  • Packing: 5,18 USD/ton [25kg/sack; 0,13 USD/sack]
  • Workers-direct: 8,10 USD/ton [1 tool for 8 workers, 11,34 USD for 1 workers in one day]
  • The cost of tread: 5,33 USD/ton [19.434 USD for the use of 10 years]
  • The cost of the tool: 3,25 USD/ton [tool 80.976 USD for 26 days/month in 5 days of use]
  • Cost of care: 5,83 USD/ton [cost of die / eyes of the felts are worn out]
  • TOTAL cost: 72,46 USD/ton

The calculation of Earnings: total Cost: 72,46 USD/ton; selling price of pellets at the plant: 137,65 USD/ton; net profit for one ton is 65,19 USD. If the monthly production of 500 tons, the net profit monthly is 32.595 USD.

Wood Pellet Indonesia Rice Straw/Wheat/Grass/like

Pellets rice straw wheat grass like
Pellets rice straw wheat grass like

Here is an example of a scheme of machine tools manufacture of pellets from rice straw / wheat with a capacity of pellets 200-300 kg/h. Such machines can also utilize various other raw materials such as wood, bagasse, stalks / skin of the corn / sorghum, peanut shell, bagasse jatropha, coffee skin, a fast growing plant, the stem of a palm (of 8.6 ton/Ha, 3650kCal/kg) sawdust, pieces of paper, and wood shavings. The machine consists of hammer mill, pellet mill, cooler, vibrated pellet separator equipped with dust catcher to prevent dust pollution. As is well known, hay is the object that is smooth and hard pressed. Therefore, the machine requires a feed screw conveyor which is specifically designed with the additional hopper, so that the user can add sawdust and pieces of paper in order to improve the quality of the pellets. If the bait is too wet, then the dryer extra need to be added.

Various types of examples of other machines (shut up, move on / in the truck, the machine tote, a large and a small) a lot of available in the market LN [1, 2, 3, 4, 5, 6, 7, 8]; DN [1, 2, 3] to make pellets from various biomass raw materials.

Comparison of Pellet straw (to pellet on the rice husk ) are: water Content: 8-10% (15- 30%); ash content 3% (15-20%); calorific Value: 18,5 MJ/kg (13,98 MJ/kg) or 4422 kCal/kg (3341 kCal/kg). Combustion of straw pellets produce carbon neutral that can be used back on the growth of the biomass of the next.

straw pellets
straw pellets

The manufacture of pellets of straw can increase the density of the rice husk, reduce the cost of transport, the energy content of the ascending (4422kKal/kg), low ash content (3%), and ash of combustion of straw pellets can be used as mineral fertilizer for plant growth.

Steps in the manufacture of straw pellet of Wood Pellet Indonesia 

  1. The separation of the straw from other objects.
  2. Dozing straw. Before the straw is sent to the feeder, He must be reduced to a uniform size (15%, the use of a dryer of the rotary drum is required.
  3. Drying of the straw. Generally straw is dried in the air with a water content of 15%, so that

drying of the hay is not required. However, if the water content >15%, the use of a dryer of

the rotary drum is required.

  1. Pelletizing in the pellet machine. After going through the process of pulping and drying, the straw is transported to the straw pellet machine use conveyor belt (conveyor). With the help of pressure between the die and roller performance machine, straw pellet is pressed out and cut according to desired length (6mm and 8mm).
  2. Cooling the pellets straw. In order to maintain the quality of the pellets during storage and handling, the output of straw pellets at high temperature should be cooled in air to room temperature or a little higher using the engine cooling air opponents direction.

Rice-producing countries (10) that are potentially utilizing straw pellet machine to recycle energy from straw are China, India, Indonesia, Bangladesh, Vietnam, Thailand, Philippines, Myanmar, Brazil, and Japan.

The Future of Wood Pellet Indonesai (coupling with PLTPk)

The Future of wood Pellets (coupling with PLTPk)
The Future of wood Pellets (coupling with PLTPk)

Wood pellets (WP) began many produced. There is a strong probability that it will occur a flood of supply in the DN and LN can be broken down to the price. Check the International prices here and the image (next). Importers of LN to start wearing concepts find WP the best, but the price is cheap. By therefore, it is the time for WP businessmen to equip their business with:

  1. Supplying WP to a coal fired power PLANT to replace coal partially / entirely (signed MoU with coal fired power PLANT).
  2. Building power PLANT wood Pellets (PLTPk; PLTBm = biomass; example in Japan) in DN / local around the factory WP.
  3. Planting a quick harvest tree, can be grown and the quality is good at the critical land / mining (tin, coal, gold, zircon, copper, nickel, etc.) to the WP material of quality, such as kaliandra red (fire stove near blue).
  4. Promote the socialization of the use of WP & stove (installments / installments) to the community (as a substitute for 3 kg LPG BBGas that is difficult to find right now). The community around the Factory WP preferred buy WP with factory price.

It was meant to stabilize the price of WP at once national power and open new jobs that are required of the people around the factory WP, for example:

  • PT Austral Byna build PLTPk 100MW (each 10MW cost Rp150miliar) in Mantuil Banjarmasin, Muara Teweh (Kab. Barito Utara) central Kalimantan, and east Kalimantan.
  • PT PLNE (Prima National Engineering Service) aboutandatangani kerma (MoU) with the District, Morowali, central Sulawesi, build PLTBm 10MW (cost Rp.30miliar in 2 years, FS 6 months) with the raw material of calliandra calothyrsus widespread in Morowali (200Ha).
  • PT EMI (Energy Management Indonesia) build PLTPk around 5-10MW (energy WP KM: 4.800kKal, biochar ~7.500 kcal) in Purworejo, Central Java (with luas plant 10 Ha) using the WP of KM with a capacity of 36.000 tons/year. Waste / ash WP still can be made fertilizer for peat land restoration that is very widespread in Indonesia (world 4th). PLTPk developed in several locations in Indonesia. The raw material (KM) obtained from the society of Wonosobo, Magelang, Kebumen, to Banyumas.
  • The Korindo group is planning to build PLTBm (wood pellets) 10MW in Jayapura, Papua. A subsidiary of the Korindo, PT Tunas Sawaerma, in collaboration with the Papua Provincial government and the Regency of Jayapura, to ask for land concessions 12.000 Ha of which approximately 7,200 Ha for the land to HTI (Industrial plantation Forests, in the form of a tree of Eucalyptus Pellita and Red Jabon handled by PT Biomass Papua Lestari) and PLTBm (by PT Bio Green Jayapura). However, they bumped customary land, and have not yet reached an agreement with the local community.

The price of Wood Pellet Indonesia(change according to supply & demand):

Domestic (factory price, Ex-Works) ($115-125)

  • Jakarta Rp.1700/kg,
  • Banten Rp.1600/kg
  • West Java Rp.1600/kg,
  • Central Java Rp.1600/kg
  • East Java Rp.1550/kg.
  • Abroad: FOB $140/ton; CIF $ 160/ton

Check where there is a stock of WP in Indonesia? contact the contact person of this jack@wordpress-715549-2485911.cloudwaysapps.com 

Danger the Processing of Wood Pellets

When you are producing WP, consider also things associated with the health and safety of the workers:

  • The dangers of dust wood pellets at the plant site,
  • Bd products poisoning – gas CO in storage WP (silo, hopper, open space); and
  • Bd products kebakaran in the factory WP, power plants, etc.

Take advantage of the Waste Biomass Into WP Around You

  • Take advantage of all the rest of the agricultural products of no worth, for example cob & corn stalks, the stems of cassava, bagasse (4476kcal / kg), bamboo (4105kcal / kg), rice husk & rice straw, empty fruit bunches of palm oil, twigs, litter, sawdust, ground nut shells (4644kcal / kg), brown hair, sengon buto (3948kCal / kg, moisture content of 14.21%, ash content 1.08 percent), etc. into WP

If you want to open up the land, count waste wood available is then pressed into WP, as addan income you (as a fuel material PLTBm / coal fired power domestic PLANT, exported to LN, fuel for furnaces, household appliances, restaurants, culinary center, etc.); not by means of burning the forest which will be about committing smoking to the entire corners of the world.

Examples of Manufacturers of wood Pellet Machine

In the State (DN)

  • PT Toba Green Synergy, Medan, north Sumatra
  • IN (Dahlan Iskan) (via PT SDI, Sociopreneur for the Sake of Indonesia) invites students of SMK making machine WP (1 ton / h) in order to utilize the planting of wood KM in 30 Provinces (east Kalimantan, NTB, Riau , Lampung, Bengkulu, etc). PT SDI building machine WP and PLTBm, and will be buying a KM from the population. Her motto is the community gets the jobs and income (from the preparation of WP, cattle and goats, cattle and bees) as well to get the power.

The machine Kingdom (UKM), production machines WP for a capacity of 400-600kg/h and 800-1000kg/h; Malang, east Java.

Abroad (LN)

  • Manufacturer of China


    pellet mill

Information about the manufacturer of machinery related to wood pellets, either individual equipment or integrated with a variety of production capacity WP of 1.5 tons/hour to 12 tons/hour is often asked of the reader. Product information TAICHANG the following can be used as a reference the initial search for these machines. If you are interested, contact jack@tcpel.com

  • Pellet machine vertical in addition to these artificial TAICHANG located in Shandong China. Capacity of 0.8-1 ton/h need to power 55kW, while the capacity of 3-4 tons/hour, need to power 220kW.

Product advantages of TAICHANG compared to the product WP the other is:

  • Compactness is highly improved through machine design. It uses modular design to increase operational reliability by 4-6 times.
  • It uses the excellent non-contact and high abrasion resistance labyrinth sealing device.
  • Increase the surface area of the reducer, adopting forced air cooling and new type deflector shield which has good heat dissipation performance.
  • The lubrication of the whole machine is designed on the basis of the lower maximum allowable oil temperature, which improves the operation reliability. Meanwhile, the maintenance cost is reduced because of the extension of the oil change cycle.
  • Break the situation of wood pellet machine borrowing the traditional industrial reducer. We use special reducer for wood pellet machine.

The circuit unit as shown in the below:







The price of the machine-pellet machine and devices from other manufacturers can be seen here.

  • Manufacturer of the European Example:

WP engine products Germany (some products have been used in the wood pellet mill in Surabaya).

An example of a Manufacturer / Factory WP in Indonesia

the Carousel do work projects in east Java, central Java, Sumatera, Kalimantan, and Papua. Indonesia will be the target Carousel to be the supplier of WP in the future in Asia and especially for the biopellet derived from waste furniture, midrib of oil palm, EFB, bagasse of cane, straw, calliandra calothyrsus, sawdust, etc.

  • North sumatra (Medan) PT Toba Green Synergy operating end of 2016 utilizing the palm EFB (EFB, tankos palm) into pellets tankos oil which is used as a BB alternative to obey the LAW No. 32 year 2009. The advantages of pellet tankos palm is the humidity is low, energy efficiency high heat, handling & storage easy, suitable for boiler system of the lattice, and produces low smoke. Honey, ash content >3%. Processing 1 Ton of FFB (Fresh Fruit Bunches) produced waste of 0.23 ton of EFB; 0,13 tons mesocarpfibre (fibers); 0,06 tons of shells (palm shell), and 0.65 tons of LCPKS (Palm oil Mill Effluent). EFB during this time is only used as a compost (mulch). The process used includes: Empty Bunch Crusher, a hydraulic system, Empty Bunch Press, the Shredded Empty Brunch, Cutter, Dryer, Bricket Machine, and Bricket Bunker. Assumptions: EFB (in TBS) of 23%, the capacity if the VFD 30ton/j, EFB produced ~ 6.9 tonnes/j. One unit shredder capacity 7ton/hr is required. In summary the process of making wood pellets: EFB crushed (crushing), shredded (shredding), slam (thressing), pressed (pressing) in order to reduce the water content, and gleaning the rest of the oil; then via conveyor sent to the drying unit (drying), cutting (cutting, max 2 inch) and so on into pellet machine tankos. The capacity of the VFD 30 kg/h or 600 kg/day, EFB 138ribu kg/day, Pellet EFB (40% of EFB) 55.200 kg/day, Tilapia heat the Pellets tankos 17.660 kJ/kg (4.640 kCal/kg), the potential heat of the pellets 974.832.000 kJ/day. Five kg pellets tankos the equivalent of 12 kg LPG gas cylinder. Price pellet machine tankos course made in China ~33.000 USD.
  • Kep Riau: IDEAS in cooperation with PT APP (Achmadi Pasca Perintis) conducted a survey to establish forest energy crops and plant WP in the Phallus (There were about 604 island large & small).
  • West java: Plant WP in Ciamis, capacity 2,500 tons/month (60%for DN, 40% for LN) IN (Dahlan Iskan) been to the factory WP (2x350kg/j, bahan raw KM) Ds Swamp, Kec. Cingambul, Kab. Majalengka; to pthrough tempe in Dukuh Semar, Cirebon, which is trying to WP Anymore.
  • IDEAS and PT MBT (Independent Three-Star) in collaboration develop the energy kaliandra, and the factory WP in Sumedang, Kuningan, and Bandung.
  • Jawa Tengah: papart wood pellets the largest of PT South Pacific furniture manufacturers in Jepara, Central java, produce WP than waste the rest of the furniture production the production of WP-its popular in south korea (70,000 tons/year), because the quality is good (high calorie, chemical constituents and the ash is quite low). Four plant WP is planned to be built in the center of the garden biomass in various locations (Max of about 4 hours from the international Airport).
  • PT SPI (Solar park Indonesia, in Kalikajar, Wonosobo, central Java) who first predicted as a pilot project the investment opportunities of biomass wood base (as well as the factory WP) between Indonesia and republic of korea (200,000 Ha) has been owned locally. Now being sold (Rp.19,5 billion) to other parties (even some of the engine is already stripped down, and sold per piece).
  • Semarang: PT Mahya Bioenergy, capacity 2,000 tons/month (max 10,000 tons/month), wood albasia, 4200-4600 kcal/kg, diameter 8mm, the moisture content of 7-9%.
  • Purworejo: PT EMI (Energy Management Indonesia) (state-owned via its subsidiary PT EBI) do the kerma with the government of Purworejo build a new factory WP derived from wood calliandra calothyrsus with a capacity of 36.000 tons/year. The production of it to meet the demand of the WP DN (250 tons/day) and LN Japan and south korea that is increasing each 250 tons/day (10,000 tons/month) via the LOI. Factory area of 10 Ha.
  • IN Yogyakarta: one of the suppliers of WP (50 tons/month) to republic of korea (and Japan) is a PT Greeno Energy Innovation of the Ds. Among, Bangunjiwo, Helpl, DIY. The main raw material is sawdust , which is obtained from the Jateng & DIY, that mixed waste other biomass like husk of rice, sugar cane pulp (bagasse), dust of tobacco, and waste paper money. Tapioca flour added to it as the adhesive.
  • East java (Paiton, Probolinggo): PT Pellet Biomass Indonesia, a manufacturer of premium WP (calories 4600kcal/kg; humidity 8%; ash content of 1.2%; the minimum message: 16 tons; the port of Surabaya; delivery time 1 month; L/C, T/T; able to supply: 2000 tons/month).
Wood pellets Calliandra calothyrsus
Wood pellets Calliandra calothyrsus
  • Madura: April 2015, CV Gate Lestari established a factory WP managed by Ponpes Darul Ittihad in the Ds. Kombangan, Kec. Geger Kab. Bangkalan, Madura with a capacity of 1 ton/h, with wood raw material calliandra calothyrsus about 12 tons/day (1 day = 8 hours, the wet raw material containing water of about 40%). If year = 310 days, then took a raw material 12ton x 310 = 3720 tons/year, or need to land 3720/20 = 186 Ha. Therefore, the garden harvested per day, only 186 Ha/310 = 0.6 Ha. The selling price of wood pellets KM Rp.The 1.6-2.5 million/ton. While, selling price of wood KM only Rp.367.000/ton. After the production is managed by the ISE (IDEAS of the Universe Energy, machines rejuvenated by CV SBE, Suryabaja Engineering), WP 2 tons/hour or 25tons/day (in the form of a mixture of KM and Kemlandingan) was sent to Gresik, and PTPN 8 in Pangalengan, Bandung (for BB the drying of the tea leaves).Local users started to utilize WP as a replacement for LPG which can save the cost of the 47% that comes with the use of the stove WP into one package with WP. That idea will be developed in Mamuju (west sulawesi) and North Lombok (NTB). Wood Kaliandra red harvested after 14 months by CV Gate Lestari. The production optimum of 20 ton/Ha/th. Local residents utilize the garden project energy kaliandra in the forest village area of 214 Ha and the factory WP 200 m2 (help ICCTF, Indonesia Climate Change Trust Fund). While, the product WP is utilized as a BB PLTBm 197kW. ISE design factory WP 1.5 tons/h in Bangkalan madura, Mamuju (west sulawesi) 2 ton/hr, Karangantu, Banten, and PLTBm in Ds. Selengen & Salute in Lombok Utara, NTB. Current wood pellet mill Madura the torpor, the lack of spare parts-pellet machine that is broken.
Factory wood pellet, Kombangan
Factory wood pellet, Kombangan
  • South Kalimantan: PT Jhonlin Agro Mandiri (PT JA) build a factory WP in the area of 2 Ha with a capacity of 4 tons/hour with the machine fully automatic. The raw material comes from wood Jabon, Gmelina, Sengon and Acacia planted in the land area of 15.000 Ha. Target: export WP to Carousel and Europe.
  • PT Inhutani III supplying the raw material eucalyptus, sengon, and gamal who are planted in the land of about 5,000 Ha, Pelaihari, Kalsel, to the factory WP which is built by PT SL Agro Industries (a subsidiary of Carousel, Depian) with a capacity of about 100,000 tons (2015). Furthermore, PT SLAI supply the WP from the factory to south Korean companies Western Power Co. Ltd. Kerma Inhutani III with China were also signed, and Inhutani III to prepare the land of 5,000 Ha. PLTBm 2x10MW with the raw material chip of wood (140.000 tons) is also built to support the power plant, while the rest of the electric power sold to PLN.
  • West Sulawesi (Mamuju): factory WP will be built by MCA-I (Millennium Challenge Account-Indonesia) with a capacity of 600 tons/month, and the garden’s energy comes from the HTR (community plantation Forests) and the HR (People’s Forest) kaliandra red prepared 748Ha. On the other hand, foreign investors from Carousel PT Bara Indoco (May 2018) invest funds via IUPHHK (Business license of Timber Forest product Utilization) (sengon & Calliandra) HTI 27.300 Ha (about 700m3 of timber, WP 200,000 tons/year) in 3 districts (tapalang sub-districts 14.865 Ha, Tommo, Kalumpang) in Mamuju (west sulawesi). Plant of 80,000 tons/year will be built in the Dappled District. Kalukku.
  • Papua: (Merauke) IDEAS in cooperation with PT SIS (Selaras Inti Semesta, MEDCO Group) conducted the FS (Feasibility study) the integration of forest energy crops and the construction of the plant WP.

The Problem That often Occurs Wood Pellet Indonesia

What you should do if the product your WP turned out to have the ash content and the levels of chlorine (the ion chloride) is above the specifications that the customer requested?

Do the process Torrefaction (Roasting with water vapor), in the reactor batch at a temperature of 250-300 oC, the pressure near the atmospheric pressure, without oxygen / water, heating rate is low (residence time of 30-120 minutes). The levels of chlorine drops by half even up to 90%.

Another way: wood powder mainly contains high water in the first wet (Tor wash, Hydrothermal Carbonization) faction (hydrothermal media, pressurized hot water 20 bar, with the purpose of the water is maintained in the form of liquid at a temperature of 180-260 ° c , the residence time 5-10 minutes), a new charged pellet mill, cooled, and then send to the customer. The water that seeps in between the particles of the biomass will dissolve the salt chloride and alkali. As a result, the value of hot WP is ascending, the levels of chlorine, water, and ash content decreased, and the nature of the WP is hard The product smelled charcoal / charcoal

Every Indonesian know that the country has plenty of wood for fuel. Therefore, Indonesia can be one of the countries with the largest wood pellet industries in the world. This is an opportunity to Indonesians to make money and become rich quickly with the establishment of a wood pellet factory.

Wood pellet Indonesia is needed to reduce emission of greenhouse gas in environment conservation. It’s a cultivation way for wood pallet as main raw material provide for an eco-friendly and renewable energy. Good thing is government realize about about the matter and support plantation like wood pellet Indonesia with more funding. It’s become the good business plan to potential private investors who have problem facing this business. Anyway, good luck to choose the best wood pellets indonesia company.

Also Read: 

How are Wood Pellets Made?

Pellet Production Profit Analysis

How to Start Pellet Making Business Successfully 2022?

Types of Pellet Machines and Their Pros and Cons

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