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At least ten new wood pellet enterprises will be opened in Belarus within the next 1-2 years.

According to Belarusian Forestry Minister Vitaly Drozhzha, the promising nature of such enterprises is obvious. Besides, Europe is actively switching from hydrocarbons to environmentally friendly fuel.

Some of the new projects are already past the allocation of land plots. Design documents are in development. Payments in advance have been made for three wood pellet plants. Equipment is being manufactured. “We intend to commission at least six more pellet plants by the end of the next year,” Vitaly Drozhzha said.

Speaking about the profitability of such projects, the forestry minister stressed that work proceeds within parameters specified by business plans. A wood pellet plant is expected to recoup the investment within 5-6 years and will generate net profit after that. “These enterprises earned the first $1 million in July. So, prospects of these plants are obvious,” he stressed.

Contracts have been signed to keep all the existing wood pellet plants busy till the end of the year. Prices for this kind of fuel are expected to increase by a certain margin once low temperatures set in. There are no problems with sales. Europe is the main export direction. There are strong hopes for selling wood pellets to China.

The post Belarus plans to open ten wood pellet plants in the next two years appeared first on Timber Industry News.