Factors That Affect The Profitability Of A Biomass Pyrolysis Plant
If you are thinking of starting a new business, maybe you should consider investing in a pyrolysis plant. Even if you know nothing about pyrolysis technology, it shouldn’t take you long to know the most important things that matter in this business.
It is an environmentally friendly business and if the business is set up the right way, you will be making money in no time. However, not every pyrolysis business across the globe is successful or profitable in the long run.
You can’t just buy a machine to set up this business and expect it to turn a profit. There are several factors that affect the profitability of this biomass pyrolysis equipment. In this blog post, we will discuss these factors and help you make an informed decision when buying this machine.
It’s a Technology Business
A common misconception regarding this business is that it’s all about the capital. The more money you invest, the sooner you can make your money back. You don’t need access to capital to set up and succeed in this business but capital alone is insufficient.
It’s a technology-centric business which means you need better technology than your competitors to succeed in the long run.
Better technology essentially means a more efficient biochar plant in terms of fuel consumption and yield. The only way to succeed in the long term in this industry is to continuously invest in better technology. It will allow you to generate better yield with lower fuel consumption which means you should be able to gain market share and earn better margins.
Stationary or Mobile
Biomass pyrolysis plants are available in both stationary and mobile configurations. A big advantage of a stationary plant is that you can have as much capacity as you want but that is not possible with a mobile plant.
On the other hand, stationary plants do not make financial sense in all circumstances. Sometimes, it is not profitable to transport all the raw materials to a centralized location. In such cases, a mobile plant makes much more sense.
Fuel Consumption & Yield
Like any other machine, a carbonizer machine also has certain operational costs. It takes a lot of fuel to keep the process going. Fuel consumption is one of the biggest expenses associated with this process.
There are designs that are much more efficient as compared to alternatives and investing in such design gives you an edge. Some designs provide more yield as compared to the designs invented in the later part of the 20th century. In short, you should focus on fuel consumption and yield that can be derived from a particular plant to properly assess profitability.
Durability
These machines are designed to last anywhere from 8 to 10 years but that is only going to happen if the machine is properly maintained. However, cheaper machines won’t last as long as machines from reputed brands. Focus on the durability of the components if you want to enjoy long term success in this business.
Final Thoughts
A biomass carbonization plant allows you to derive usable fuel from biomass and other waste material that would have otherwise filled a landfill. However, it can be run profitably only when you understand that it is all about technology and not capital. This is why successful businesses in this industry are always focused on better technology to get an edge over their competitors and this is what you should do to remain competitive and profitable in the long run.