How Much Does A Wood Pellet Mill Cost

Many customers who inquire about our equipment often begin with the same question: “How much does a wood pellet machine cost?” To help them better understand the actual performance and working effect of the equipment before discussing prices, we usually recommend watching our wood pellet mill test run video.

In practice, prices primarily depend on the equipment model, output, configuration, and application requirements. Based on our standard model configuration, the current wood pellet mill price ranges from approximately $15,000 to $85,000, with differences between models mainly stemming from variations in capacity and structure.

For small to medium-sized users, the RICHI wood pellet mill models MZLH320–MZLH350 are the most popular. Priced between approximately $15,000 and $23,000, with an output of 0.2–0.5 tons/hour, they are ideal for investors just entering the wood pellet industry or small wood processing plants using sawdust, shavings, and wood powder as primary raw materials. When people ask how much does a wood pellet mill cost, these smaller models usually fall into the entry-level investment range.

For industrial-scale, high-volume continuous production (capable of 24-hour continuous operation), our customers typically choose medium to large-sized models such as the MZLH420–MZLH768. The price range is approximately US$30,000–85,000, corresponding to a production capacity of 1.0–4.0 tons/hour. These machines have higher power, larger ring dies, and heavier structures, making them suitable for long-term continuous operation and offering high stability. They are ideal for established plants or customers planning to expand capacity.

In addition, RICHI has built many larger wood pellet factory projects. For example, a 10-ton/hour wood pellet plant in the United States is equipped with four MZLH678 units; a 20-ton/hour wood pellet plant in Bangladesh is equipped with four MZLH768 units. We also have projects in over 140 countries worldwide, including Russia, Kazakhstan, Turkey, Malaysia, and Canada. For these high-volume plants, users often care not only about single machine prices but also how much does a wood pellet mill cost when multiple units are configured.

  • MZLH320 Sawdust Pellet Mill (0.2–0.3 tons/hour): $15,000–$18,000
  • MZLH350 Sawdust Pellet Mill (0.3–0.5 tons/hour): $20,000–$23,000
  • MZLH420 Wood Pellet Mill (1.0–1.2 tons/hour): $30,000–$35,000
  • MZLH520 Wood Pellet Mill (1.5–2.0 tons/hour): $45,000–$50,000
  • MZLH678 Industrial Pellet Mill (2.5–3.0 tons/hour): $68,000–$75,000
  • MZLH768 Large Wood Pellet Mill (3.0–4.0 tons/hour): $80,000–$85,000

Generally speaking, the higher the output and the heavier the equipment structure, the higher the price. This is because larger machines require more powerful gearboxes, larger main motors, higher-grade alloy steel ring dies, and more durable overall machine structures.

If you can tell us your raw materials, planned output, and budget, we can recommend the most suitable model and provide a detailed quotation. This is the most accurate way to answer how much does a wood pellet mill cost for your specific case.

Many customers think that wood pellet mill machine cost only refers to the price of the pellet mill itself. However, in reality, purchasing a wood pellet mill and putting it into operation involves several stages of cost. To truly understand “How Much Does A Wood Pellet Mill Cost?”, you need to consider the following categories of expenses:

Components of a Wood Pellet Mill

Below are the components of our wood pellet mill, which will help you understand where the cost of a wood pellet mill is spent:

Components of a Wood Pellet Mill
  • Stainless Steel Feeder: Located at the top of the equipment, used to transport the crushed wood chips to the pelleting hopper.
  • Pelletizing Room: The quality and structure of the pelletizing room are one of the key factors determining the cost of a wood pellet mill.
  • Siemens Motor: Siemens motors are known for their high efficiency and low failure rate, making them very important and not inexpensive.
  • Cutting Device: Responsible for cutting the extruded pellets to the required length.
  • Electric Control System: Automatic or semi-automatic control systems can be customized.
  • Lubrication System: Primarily reduces wear and extends component life.
  • Steam Discharging Outlet: Allows timely discharge of large amounts of steam generated during pelleting.

When planning and building a wood pellet production line, many clients are most concerned about the total cost of the entire wood pellet plant. In fact, the cost of a complete wood pellet plant for sale varies greatly depending on its capacity, as equipment configuration, level of automation, and raw material availability all affect the final quote. Below, I will provide you with a simple and clear reference for capacity and price to help you quickly understand the investment range for projects of different sizes.

1、Main Equipment of a Wood Pellet Mill Plant

A complete wood pellet line typically includes the following core equipment:

Wood Pellet Mill Plant
  • Wood Chipper
  • Wood Crusher
  • Wood Drying Machine
  • Wood Pellet Mill (MZLH series)
  • Cooler
  • Screening Machine
  • Automatic Packaging Machine
  • Conveying System
  • Dust Removal System
  • Electrical Control System (PLC optional)

2、Complete Wood Pellet Production Flow

Raw Materials (Branches, Wood Chips, Wood Shavings, etc.) → Chipping → Crushing → Drying → Pelletizing → Cooling → Screwing → Packaging and Discharge

3、Cost Reference for Wood Pellet Mill Plants of Different Capacities

The following prices are FOB reference ranges to help you quickly understand the approximate investment range for your desired wood pellet mill plant:

  • 0.5–1T/H Wood Pellet Mill Plant Cost: $20,000 – $60,000
  • 2–3T/H Wood Pellet Mill Plant Cost: $90,000 – $160,000
  • 3–5T/H Wood Pellet Mill Plant Cost: $130,000 – $240,000
  • 6–8T/H Wood Pellet Mill Plant Cost: $250,000 – $450,000
  • 12–15T/H Wood Pellet Mill Plant Cost: $500,000 – $750,000
  • 20–30T/H Wood Pellet Mill Plant Cost: $1,000,000 – $2,000,000

After asking “How Much Does A Wood Pellet Mill Cost?”, you might wonder what the main factors influencing pellet mill prices are. Here’s the breakdown:

  1. Model & Capacity

The larger the pellet mill’s processing capacity, the larger the ring die diameter, and the higher the main motor power, the higher the price. For example, a small machine might cost just over $10,000, while a large industrial machine can cost over $100,000.

  1. Configuration & Material

Different configurations directly affect costs, including: whether it has a variable frequency feeder, whether it has a double-layer conditioner, whether it’s made of carbon steel or stainless steel, the quality and lifespan of the ring die and pressure rollers. Higher configurations mean more stable output and a longer lifespan.

  1. Manufacturing Process and Quality

The brand’s processing precision, the heat treatment process of the machine materials, equipment stability, and design structure all affect the wood pellet making machine price. High-quality manufacturing processes mean less maintenance and a longer lifespan, which indirectly results in a lower overall cost.

  1. Motor Brand

Whether or not international brand motors such as Siemens and WEG are used will affect the overall cost and energy consumption.

  1. Automation Level

Automatic lubrication systems, intelligent control systems, and PLC monitoring will increase equipment investment, but can reduce labor costs and improve safety.

  1. Spare Parts & Service

The lifespan of key components such as ring dies, pressure rollers, and bearings, as well as the manufacturer’s service capabilities, will also affect the overall cost for users when selecting equipment.

Below are 8 wood pellet mill project case studies from different countries, with varying outputs and raw materials. These real-world examples allow you to quickly understand how much does a wood pellet mill cost in different regions and configurations, helping you determine whether your budget aligns with actual market conditions.

12 ton/hour large-scale wood pellet plant for sale Indonesia
6 ton/hour wood pellet plant for sale Vietnam
20 ton/hour industrial-grade wood pellet production line for sale Bangladesh
5 ton/hour wood pellet mill production line for sale Russia
3 ton/hour wood pellet plant for sale Malaysia
  • 1 Ton/Hour Wood Pellet Mill for Sale USA

This project was invested in by a US furniture factory, primarily for processing wood chips, shavings, and other waste generated within the factory, reducing processing costs and selling pellet fuel. The final contract price for the entire system was approximately US$75,000.

This project, built within a local timber processing park, includes a complete pelleting line encompassing crushing, drying, pelleting, and packaging systems, with a total investment of approximately US$185,000.

  • 5 ton/hour wood pellet mill production line for sale Russia

A Russian client built a 5 ton/hour industrial pelleting project to supply long-term orders to a local thermal power plant, with a total contract value of approximately US$240,000.

  • 6 ton/hour wood pellet plant for sale Vietnam

This project, built by a board plant to utilize its large volume of production waste for pellet export, includes two pellet mills and a complete production line, with a total equipment investment of approximately US$255,000.

This is a large-scale export-oriented pellet plant. Raw materials are sourced from local forestry resources. The complete setup includes four pellet mills and a fully automated packaging system. The contract price is approximately US$550,000.

  • 20 ton/hour industrial-grade wood pellet production line for sale Bangladesh

The client uses it for fuel supply to a large power plant. The entire plant is highly automated and operates continuously 24 hours a day. The total investment for the project is approximately US$1,000,000.

Taking a 1 t/h wood pellet mill as an example, we calculate the cost based on “per ton of raw material”. The following data is for general reference (varies significantly across different countries):

Wood Pellet Mill Cost

1. Raw Material Cost: 0–40 USD/ton

Some customers obtain wood pellets from their own lumber mills, furniture factories, or partner companies, so they spend almost nothing on raw materials; other users who need to purchase wood pellets externally typically pay between 10–40 USD/ton, depending on factors such as moisture content and transportation distance.

2. Finished Pellet Selling Price: 120–200 USD/ton

Prices depend on local market conditions, biomass power plant demand, seasonality, etc.

3. Gross Profit per Ton: Approximately 60–160 USD/ton

Profit margins are higher when raw material costs are zero.

4. After including labor, electricity, site, packaging bags, and routine maintenance costs

Small to medium-sized wood pellet projects typically recoup their investment in 8–20 months (depending on raw material costs).

To determine if a manufacturer can provide a reasonable wood pellet mill cost, you can consider the following:

  • Does it have its own factory?
  • Does it have over 10 years of experience?
  • Can it provide customized compression ratios?
  • Does it offer overseas installation?
  • Can it provide trial operation services?
  • Can it provide a complete project layout?
  • Do it have a complete and large-scale actual project track record?
  • Does it export to more than 100 countries?
  • Is its after-sales service system comprehensive?

Therefore, a mature manufacturer can truly help you reduce long-term wood pellet mill costs.

  1. RICHI Machinery is a global pellet equipment manufacturer with over 30 years of experience, helping customers clearly understand how much does a wood pellet mill cost through professional consultation and transparent pricing.
  2. Our equipment is exported to over 140 countries. Whether you’re a small producer or a large wood pellet plant, RICHI offers suitable complete solutions.
  3. Our plants utilize stable and reliable processing techniques and heat treatment technologies, making equipment durability and stability key reasons why clients choose us.
  4. We can also provide customized designs for different raw materials, target outputs, and process requirements, including compression ratios, structural configurations, and levels of automation.
  5. From installation guidance and plant layout to operation training and after-sales support, we provide comprehensive assistance to help clients successfully build and maintain stable long-term operation of their pellet projects. You can find us on YouTube.
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