How Profitable Is Charcoal Production?

Charcoal is a charcoal product obtained by pyrolysis of wood at high temperatures or dry distillation in the absence of oxygen. The raw material mainly comes from farms, woods, waste wood, abandoned crops and so on. Compared with natural charcoal, mechanism charcoal has the advantages of high calorific value, low ash, long burning time and other characteristics. Many friends ask: Is it profitable to produce charcoal? Charcoal machine has small investment and stable market. Although the charcoal processing plant is inconspicuous, lack of rich profits.

The Market Demand For Charcoal Production Is Strong

Mechanism charcoal has a wide range of applications in the field of life and industry. Due to its unique aroma and industrial applications, charcoal is still in high demand in the competitive market. Therefore, charcoal processing provides a reliable sales guarantee. Especially for field barbecue, the unique aroma of charcoal burning is irreplaceable by electric grill. It can also be used in the metal smelting industry. Charcoal is often used as a reducing agent. The consumption rate of charcoal in copper and aluminium smelting plants is up to hundreds of tonnes per month. In addition, activated carbon plants and other industries also need to purchase charcoal in large quantities. The market demand for charcoal is stable and extensive, and the sales demand is high. Therefore, charcoal has a wider application prospect in the future.
 

Abundant Raw Material Resources For Producing Charcoal

There are abundant raw material resources for charcoal processing. There are free resources in the countryside. Such as straw, sawdust, rice husk, corn stalks, tree branches, tree trunks, straw and so on. All of them are the best raw materials for making charcoal. The abundance of surplus materials in the countryside provides a low-cost and sufficient source of raw materials for charcoal production. These include straw, rice husks, peanut shells, sawdust and trimmings from timber mills. All are good raw materials for this kind of charcoal. Sawdust from timber mills can be produced for as little as $40-$50. Much of the agricultural waste costs nothing. It is given away for free by agricultural farmers. Therefore, the raw material for charcoal production is inexpensive.

Analysis Of Charcoal Making Machine And Operating Costs

We have gone through a detailed calculation of the inputs and benefits of charcoal processing. Charcoal making machine is the main expense. The approximate price of a new charcoal production line is $5000-8000. The following is the common charcoal machine as an example for cost analysis:

• Raw material cost: It takes about 2.5 tonnes of sawdust to produce 1 tonne of charcoal. If it is 40$ per tonne, the raw material cost is about 120$.
• Electricity consumption: the whole process of briquetting and talking consumes about 100 kWh of electricity. If the price of each unit of electricity is about 0.13$. Then the cost of electricity is: 13$.
• Labour cost: If it is small scale type charcoal production, you can save labour cost. If technicians are needed. The labour cost per worker per day is about 20-30$.
• Other costs: the finished charcoal needs to be packed and transported. Other costs are about 30$. According to the difference of the region, there is a certain difference in the cost.

To sum up: the total cost of producing one tonne of charcoal is about 150-160$. However, the wholesale price of charcoal on the market is about 400-500$. You can double the profit per tonne. Equipment investment is the main cost in the early stage. But with the large-scale production. The low cost of raw materials and stable market demand will bring a good profit.

• Perv: What Is A Drum Wood Chipper?
• Newxt: Back To List