Business start-up: 

WOOD PELLETS LIBERIA

Wood pellets are made of sawdust -a waste material presently a garbage hazard in Monrovia. Mixed with an organic binding agent and then pressed in a matrix 8X50mm bullet sized pallets are manufactured, or in any other form or shape to specification.

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WOOD PELLETS LIBERIA INC.

Presented by: MPI Inc. LIBERIA

The pellet fuel market continues to grow, serving emerging markets in the Far East and other parts of the world. In the United Kingdom, for instance, pellets are firing massive generators to provide power to millions of people. In North America as access to affordable, efficient power of pellets is growing. The market demand is so high that for quality wood pellets most producers sell their entire production before they even start with the production process for the next year.

The booming success of wood pellets in European Countries such as Austria, Denmark and Sweden, has yet to be replicated elsewhere. In Southern European countries, the lack of available wood waste means that pellets from agricultural residues ("agri-pellets") are the most promising solution. With raw materials that costs a fraction of raw materials for agri-pallets, and an availability around thousand times greater in Liberia, the potential of this product for Liberia is immense. And ... It does not require cutting the rainforest.

Wood pallets are made of sawdust -a waste material presently a garbage hazard in Monrovia- mixed with an organic binding agent and then pressed in a matrix into 8X50mm, or in other dimensions and forms to customer’s specifications. As binding agent cassava starch will be used in Liberia. Wood pellets are clean, convenient, and economical. It is known that burning wood is much better for the environment than burning fossil fuels. Better yet, Pellets are made from waste wood, so they efficiently reduce products that previously polluted the environment. Also wood pellets create less dust, and smoke compared to traditional wood burring stoves.

Mano Properties & Investment Inc. (MPI) invites interested partners/parties to establish with investors and local suppliers a sustainable Joint Venture- WOOD PELLETS LIBERIA INC. (WPL). The required investment fund is estimated at $150,000.

Facts

Year of establishment

2007

Sales (US$)
Two years ago:
Last year:
This year: 1,500,000
Year 2: 4,500,000
Year 3: 9,500,000
Net profit after tax (US$)
Two years ago:
Last year:
This year: 450,000
Year 2: 1,000,000
Year 3: 2,500,000
Number of Employees
Two years ago:
Last year:
This year: 40
Year 2: 150
Year 3: 300

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 25,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...)
Total Finance needed (US$) 25,000

How do you expect this to be financed? [?]

Own Contribution in cash
Loans (debt) 250,000
Shares in your company that you offer to investors (equity)
Other sources
Total Finance needed (US$) 250,000

The Business

What is your product/service?

Wood pellets are a wood by-product that is burned for heat and energy, and are an example of biomass fuel. Biomass fuels are a renewable resource, and given proper forest management, are limitless.

Manufacturers of wood pellets take sawmill sawdust, and turn it into bullet-sized pellets that are uniform in size, shape, moisture, density and energy content. These pellets have substantially lower moisture content than cordwood or chips, increasing their burn efficiency.

The pellets' high density and uniform shape allow them to be easily transported in rail cars stored in standard silos, and exported on cargo ships to overseas destinations.

In European wood pellets are primarily used electric plants where they are burned along with coal.

1. Wood Pellet Fuel is a fraction of cost of fossil fuel.
2. It's a renewable resource.
3. Wood pellets are easy to ship, delivered in compact bags to the customer's doorstep.
4. Wood Pellets are refined biomass which transports around the globe.
5. No tree is ever cut down for commercial pellet production. Instead, pellets are produced from forest industry waste wood.
6. Wood pellet costs are stable, and not subject to the whims of domestic suppliers.
7. Wood pellets burn at a very high temperature, eliminating the waste product so often associated with wood heat. In fact, a 40-pound bag of pellets produces only three ounces of ash.

PRODUCTION PROCESS

1. Sawdust is collected from sawmill and wood processing areas and transported to a factory side in the neighborhood of the Monrovia Freeport;

2. Sawdust is sieved (sifted) to separate wood shavings from actual sawdust fine particles;

3. Wood shavings are then ground to actual sawdust and added to sieved sawdust originally gathered;

4. Sawdust is then dried to reduce moisture content and mixed with a binding agent. In Europe and Canada, potato starch is used. We have cassava starch which is also organic and has the same binding;

5. Mixed with starch and sawdust are then loaded manually onto a matrix with holes of specified measurement to consumers specifications (such as 8mm by 50mm round. On the matrix, roller presses sawdust mixture where it is pressed through cylindrical holes. Pellets strings are then cut with automatic knives under the matrix;

6. Wood pellets are then cooled and sieved again to remove accumulated particles, weighed, packed in compact bags and stored for shipment.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

The product will be sold before producing. Last year a same project has been established in neighboring Sierra Leone, presently producing over 1,000 MP per month with a demand for 20,000 MT per month.

3 comments

Yet another initiative!

Hi Willem

Good to see that you are quite active and inventive over there. So the 200 degrees view on the ocean rea;lly inspires doesn't it?
Lots of luck and strength!
George

George de Ceuninck, 8 July 07, 22:31

Thanks to George

Thank you coach. Your comments are very encouraging and indeed, the ocean view at Ducor Hill is very inspiring.

Willem Tijssen, 9 July 07, 10:17

Willem, the Conqueror

Hi, Willem!

Why not make MDF boards? There's more value-added in them. In the '90s, there's this Elten Systems of The Netherlands that was selling an assembly line of machines for fiberboards. I checked it out on the Internet, but I don't think it still carries that line of machines.

Admirable undertaking in making use of abundant raw materials!

Gilbert Pangyarihan, 16 July 07, 20:48
Needs