Sawdust processing as a business - removal and disposal for profit

Sawdust is waste that is generated when working on wood using a saw.

In the industrial economy of Russia, woodworking as an industry occupies a leading position. Such waste cannot be called harmful. They are quickly degradable, non-toxic, and do not disturb the ecological balance of the environment.

Balance of chemical elements that make up sawdust:

Carbon	50%
Oxygen	44%
Hydrogen	6%
Nitrogen	0,1%

Burial or burning is gradually but inevitably becoming a thing of the past. Natural forest resources are renewable, but this requires decades and investment of effort and money. Sawdust processing, with sufficient volumes, moves from a consumable part into a profitable line of business.

Types of products

Sawdust, that is, waste from sawing wood, is used for :

• production of fuel pellets and briquettes;
• production of various building materials, for example, sawdust concrete, wood concrete;
• growing mushrooms;
• insulation of houses;
• smoking products;
• obtaining technical alcohol (biofuel) and pyrolysis gas suitable for use in heating boilers.

You can read more about products made from sawdust in the article How sawdust is used.

Processing sawdust for further use

Sawdust processing methods make it possible to obtain different products. In production, mechanical, chemical and combined (chemical-mechanical) methods are used.

The mechanical method is based on grinding wood waste to the state of fibers or wood dust. They are used by pressing to make slabs, granules, briquettes, etc.

A striking example of mechanical processing is the production of wood fuel pellets (DTG). They have a high efficiency, that is, heat transfer during combustion. Fuel pellets are widely used in heating systems in Western Europe, as they are an environmentally friendly type of fuel.

Based on crushed wood waste with the addition of chemical fillers (phenol-formaldehyde resins, adhesives), modified high-strength wood is produced - veneer, laminated veneer lumber, particle board (OSB).

We recommend reading: Rational use and protection of land resources

Such products of deep wood processing are not inferior, and in some respects even superior to traditional brick and concrete materials. They have a low combustion coefficient, low deformation, high strength, and are easy to process.

Sawdust boards and plywood have found application in frame housing construction, which experts see as the future.

The chemical method of sawdust processing involves acids and alkalis. At the end of the process, the following is obtained from sawdust:

• solvents;
• alcohols;
• tannins;
• rosin;
• turpentine;
• acetic acid, etc.

As fillers, chemically treated wood waste has found application in the production of paper, bitumen, and varnishes.

How to choose a way to earn money

When choosing a method for recycling sawdust in order to make a profit , you need to focus on factors such as:

• availability and characteristics of the material;
• costs of delivering the material to the disposal site;
• equipment and site preparation costs;
• demand for certain products in your own and neighboring regions;
• water and energy costs;
• budget size;
• taxes, permits and approvals;
• transportation costs for delivering the finished product to the place of sale;
• volume of products produced.

After examining all the factors, you can determine which disposal method is acceptable in your situation.

Availability and material characteristics

For most types of processing, sawing waste from clean and healthy wood , preferably without bark particles, is suitable.

The easiest way to find such material is at sawmills where debarked logs are sawed and in carpentry shops or woodworking enterprises.

Despite the fact that sawdust is sawing waste, not all enterprises agree to give it away for free , especially if there is a high demand for sawdust in the region.

It is advisable to look for those enterprises whose management is trying to get rid of accumulating waste by any means , in this case it will be possible to receive it for free, which will increase the profitability of the business for its disposal and processing.

At most sawmills, the waste contains a small amount of bark, so the characteristics of such material are somewhat worse than pure ones. However, even it is suitable for most types of processing, although the quality of the final product will also be slightly worse than when using pure raw materials.

Humidity is no less important , because for some processes sawdust needs to be dried, for others it needs to be moistened.

The closer the humidity of the feedstock is to that required for the production of a particular product, the less effort and energy resources will have to be spent to adjust it.

For more information about the characteristics of wood sawing waste, read the article Types of sawdust. If you want to learn more about where sawdust is obtained, then read this article.

Fare

The cost of the material consists not only of the payment that woodworking enterprises and sawmills ask for, but also of transportation costs .

The further from the place of sawdust production to the place of their disposal, the higher the transportation costs will be.

The material must be removed using trucks or dump trucks , which means you have to pay for:

• burnt fuel;
• wasted equipment resource;
• wasted driver time.

Even if you use your own personal truck, then in this case you cannot avoid spending. At a minimum, you are wasting fuel and the life of the car , as well as wasting personal time that could be used for some other purpose.

Therefore, the further from the place of production of wood sawing waste to the place of its disposal, the higher the transportation costs, and therefore the lower the final profit .

Equipment and site preparation costs

For most types of sawdust processing, a standard set of equipment :

• Dryer;
• humidifier;
• press;
• heat generator

The cost of such equipment depends on its:

• productivity;
• conditions;
• age;
• brand.

Therefore, at the initial stage of business development, they often take used equipment of low productivity because it is inexpensive.

In addition, you need free space sufficient for installing equipment, as well as storing raw materials and finished products.

It is highly desirable to have a good access road and communications - water, electricity and gas. Even renting such a plot is not cheap, let alone purchasing it, so if there is a budget deficit you will have to sacrifice something by choosing a less expensive plot.

If there are no buildings on the site suitable for the production of the selected product, then they will have to be built, which also increases the overall costs of preparing the site, and therefore increases the payback period for investments in the business.

If there is no light and gas, then you need an electric generator or power plant based on pyrolysis gas, which can be obtained from the same sawdust.

For production:

• Fiberboard;
• chipboard;
• hardboard

It is advisable to take a full cycle line , which includes all the necessary devices. After all, when producing these materials, it is very important to follow the technology of each operation, which is difficult to do with uncoordinated equipment.

The main disadvantage of such lines is the high price , which starts from 10 million rubles for lines that provide minimal quality and performance.

Demand for finished products

The demand for finished products depends on many factors.

For example, in regions where the construction market is intensively developing, but people’s salaries are low, there is a high demand for blocks made of wood concrete or sawdust concrete .

This demand is even higher in regions where there is no clay suitable for making bricks.

However, in regions with high salaries, preference is given to more expensive materials , including monolithic concrete.

Demand for compressed sawdust, which can be used as litter for cat and dog litter, is high only in large cities, where many people keep cats and dogs in ordinary apartments.

At the same time it is unrealistic to sell such a product in villages and small towns , because most owners of cats and dogs live in private houses, so dogs relieve their needs on the street or in the garden, which means that there is no need for dog or cat litter at home.

Fiberboard and particle boards, which are made from sawdust, are in demand both in regions with high activity in the construction sector and where furniture factories are located.

Fuel briquettes and pellets are in high demand only in those regions where there are many non-gas supply villages, but their residents can afford to buy automatic boilers. The cost of such a boiler exceeds 60 thousand rubles, which is much higher than the price of a wood-burning or gas heating device.

Also, this type of fuel is in great demand in the EU , but they are only interested in stable supplies of large volumes (tens of cubic meters per week).

Sawdust can also be used to make soil for planting flowers, but such a product will be in demand only in large cities. Because residents of small towns and villages can go out into the yard and collect soil in a pot from the nearest lawn or garden.

Water and energy costs

Any production related to the processing of wood sawing waste requires electricity , and often other resources (water, gas, gasoline or diesel fuel).

After all, electricity and other energy resources are spent on:

• operation of machine drive motors and ventilation;
• heating the air in drying chambers;
• heating the working surfaces of presses;
• lighting;
• heating;
• preparing food for workers.

Regardless of the type of engine in a particular device, you will still have to spend money on energy. However, electricity is much cheaper than gasoline or diesel fuel, so all stationary machines, installations and processing lines are equipped with electric motors.

The costs also include all the money you will spend to obtain permission to connect to power lines or allocate the necessary power.

there is no electricity supplied to the area where you plan to deploy a line for processing wood sawing waste, then you will have to spend money on connecting it or installing your own power plant .

a pyrolysis plant running on sawdust will be a good help It produces pyrolysis gas, which can be used to produce steam without having to purchase natural gas or other fuels.

Any of these methods requires quite serious financial investments , but connecting to already installed networks is much cheaper than paying for electricity supply or building a power plant.

Connecting to water will also require investment, because even if water is supplied to the site, you need to obtain permission to connect to it, as well as enter into an agreement for wastewater disposal.

In many regions of Russia, permission to connect water is not issued without such an agreement, citing the protection of nature from toxic discharges from enterprises.

Instead of a contract, and also when it is not possible to connect to the sewer, you can install a treatment station , which will be carefully checked by representatives of various regulatory authorities. However, such a treatment plant will cost much more than a disposal contract .

Budget size

To organize any business, you need some initial capital , with which you can purchase equipment and set up production. However, the budget of a person or organization cannot always withstand such a load, so something has to be sacrificed.

You can buy used equipment ten times cheaper than new. However, such equipment breaks down more often, and often produces products of somewhat worse quality.

You can take new equipment, but with less productivity. You can also use a loan or lease equipment .

With a minimum budget, the easiest way is to organize the cultivation of mushrooms , because for this you only need a building in which bags of material will be hung and a steam generator necessary for disinfecting sawdust.

Another advantage of this method of disposal is that after harvesting, the sawdust turns into an excellent fertilizer suitable for any soil .

Taxes, permits and approvals

When planning to produce any product, you need to obtain many different permits, licenses and patents , as well as pay taxes in advance.

This is one of the features of Russian legislation, according to which for many types of businesses tax is paid before making a profit .

The amount of the tax, as well as the list of required permits, licenses and other documents, depends on the region and the policy of regional authorities in this area.

Here are links to several forums that discuss these and similar issues related to wood waste recycling:

1. Forumhouse.
2. Accounting online.
3. Forest industry forums.
4. Forum for environmentalists.

Transportation costs for delivering the finished product to the point of sale

In order to receive money for a product, it must first be delivered to the point of sale , which can be:

• stock;
• shop;
• house;
• apartment.

Depending on the terms of the agreement with the intermediary (store) or the direct buyer, delivery costs may fall on both him and the manufacturer, which must be taken into account when organizing a business.

Even if we are talking about delivering goods using our own transport , it is still necessary to take into account the costs of :

• fuel;
• car depreciation;
• driver's salary.

Sawdust processing equipment

The set of equipment for processing sawdust depends on what kind of products you will produce. But there is a typical set of machines that you cannot do without:

1. Conveyor belts.
2. Crushing plants and grinders.
3. Faucets.
4. Presses and molds for pressing.
5. Drying chambers.
6. Storage bins.

Shredders

The first in the line of sawdust processing equipment are shredders.

At the stage of grinding raw materials, the dimensions and other parameters of the source material do not play a role.

The only fundamental division of shredders is into horizontal and vertical.

Horizontal ones work on small waste: bark, twigs, branches, sawdust, shavings, wood chips.

Vertical ones are used for large volumes: substandard logs, scrap, waste.

Road and utility companies also use crushing equipment. It is attached to a tractor and shreds pruned tree branches, shrubs, uprooted stumps and roots. The sawdust is taken away for processing or pressed right there.

Dryers

Classic devices for drying sawdust are drum ones. Vortex dryers are considered modern. The main problem of both is spontaneous combustion. The temperature inside the dryers reaches 500 0C, the temperature of the product at the outlet is up to 900C.

Maximum protection of installations from fires must be carefully planned when choosing equipment.

The drying unit is serviced by one operator. Raw materials are usually supplied mechanically - by tractor or conveyor belt.

Presses

Presses are used for fuel briquettes and pellets. The pressing method is simple, the pressing machine itself takes up little space, and the work does not require chemical fillers - that is, glue and resins.

Unit installations operate on electricity, coal, and diesel fuel.

The production of briquettes by pressing has high productivity at the same time as low cost.

Cost of finished products

The cost of finished products depends on many factors , but the main ones are:

• demand in the region;
• availability and accessibility of competing products;
• shipping costs.

The higher the demand for a product in the region, the higher its price will be.

For example, in regions where most villages and villages are gasified, it is difficult to find a buyer for pellets, because a gas boiler is cheaper than an automatic pellet boiler, and gas is cheaper than pellets.

However, in regions where agriculture is widely developed, but many villages are not gasified, the demand for pellets is high. After all, in such villages, farmers and their workers earn good money and can afford to buy an automatic boiler for 60–100 thousand rubles.

Despite the fact that pellets are noticeably more expensive than firewood, the ability to light the boiler not 3-4 times a day, but 1-2 times a week makes this fuel more attractive. Read more about choosing a boiler for heating with pressed sawdust in the form of briquettes or pellets in this article.

is somewhat different with fuel briquettes , because they can be used not only in automatic boilers, but in conventional heating devices that burn wood.

The same shape, higher heat capacity and longer burning time make briquettes a more preferable fuel for fireplaces than wood, which determines the demand for them.

Construction materials based on wood sawing waste are most in demand where delivery of traditional materials is difficult, but people have money for construction. Therefore, in such regions, the cost of sawdust concrete or crossbow concrete blocks will be higher than in places where there are no difficulties with the supply of bricks or various building blocks.

The same applies to particle boards and fibreboards - the higher the demand for them and the less supply of these materials from other regions, the higher the price for them will be.

Stove for heating a house

Eurobriquettes are often used for heating houses. One ignition of the stove is enough to maintain the fire for a long time without adding fuel.

To light a brick oven, you must first light the bricks. To do this you will need tree bark, wood chips, and dry newspapers. Fuel should be placed on top of all this. At the moment of kindling, it is important that there is airflow. When the first part of the briquettes lights up, you can add the next batch.

Another method of kindling is to add fuel to the coals left over from the combustion of the first batch of firewood.

There are two ways to fill the stove with fuel briquettes:

1. Place the bars loosely in relation to each other. This helps to quickly heat the house.
2. Fold the raw materials tightly. This will cause the fuel to smolder, which is a suitable option for heating the house at night. The consumption of fuel briquettes in this case is much less compared to firewood.

Harvesting and storing firewood is more difficult when compared to storing eurobriquettes. The finished compressed raw materials are placed in separate packages, which are wrapped in cellophane. This prevents moisture from entering. Store fuel in utility rooms, basements, sheds or attics. The products are in the shape of tubes or bricks, so they are very convenient to store. Bars take up much less space than firewood.

Profitability assessment

Before starting any business, it is necessary to evaluate its profitability.

To do this, carry out marketing research , which helps determine the demand for the finished product and the maximum price that can be obtained for it.

Then they add up all the expenses, including taxes and various permits, after which they subtract the expenses from the revenue and get the profitability of the business.

There is a high probability that the calculations will not be very accurate , because it is difficult to take into account various force majeure circumstances.

For example, employees of the State Fire Supervision may oblige you to install some special fire safety system at your enterprise, which is available only from one seller, and therefore costs significantly more than others.

Some regulatory organization will begin to conduct regular inspections for various reasons, and during the inspection it will be necessary to stop production.

Therefore, to more accurately assess the profitability of a sawdust processing business, it is advisable to talk with someone who is successfully doing something similar .

Fuel production

If your business is focused on fuel production, it is worth buying a pyrolysis unit. It consists of the following main components:

• raw material preparation unit;
• pyrolysis boiler;
• gas piston power plant.

They have been produced in Russia for more than 80 years, but you can also buy foreign equipment. A domestic unit for 10 tons of sawdust per day costs approximately 30 million rubles. Moreover, it runs partly on electricity and partly on fuel. From 18 tons of waste, approximately 3 tons of fuel are obtained: gasoline (40%), diesel fuel (40%), fuel oil (20%).

What is affected by the volume of products produced?

The higher the volume of products produced, the greater the total revenue from its sales.

In addition, the increase in the volume of manufactured products is associated with the automation of production and a decrease in the share of low-skilled manual labor, which leads to a reduction in the cost of producing goods in the long term.

That is why enterprises with the maximum volume of products produced can reduce the cost of the finished product, which makes their products more attractive to buyers.

In addition, a decrease in the share of low-skilled manual labor leads to an increase in the quality of finished products , which, together with a decrease in price, makes the product even more in demand.

Recommendations for choosing fuel briquettes

In order for fuel products to burn well, when choosing, you should adhere to the following principles:

1. It is best to use sawdust briquettes. The oil contained in the fuel raw material from seed husks contributes to the contamination of heating devices.
2. Due to the resin in pine briquettes, chimneys become dirty.
3. When purchasing fuel, you should first read the documents containing the product characteristics.
4. It is recommended to choose Euro firewood with maximum density. The duration and uniformity of combustion depends on this.
5. If a large amount of fuel is needed, it is better to start by purchasing 10-20 kg of raw materials for a sample from different places. Poor quality of a briquette can be determined by its appearance, for example, if it crumbles. Samples should be burned individually, checking the duration and efficiency of combustion. It is worth paying attention to the remaining coals, which may fall apart or hold their shape. Such experiments will help you choose high-quality fuel.

How to increase profitability

There are only two ways to increase business profitability :

• increase in revenue;
• cost reduction.

In order for revenue to increase, it is necessary either to increase productivity (which is associated with large financial investments) and the volume of sales of finished material, or to sell it at a higher price .

But the price depends on the demand for the product and the saturation of the market, so the manufacturer cannot influence it in any way, unless he finds a new place to sell his products, where the demand for it will be maximum, and he will be the only supplier.

Therefore, it is much easier to increase profits by reducing costs . For example, by installing a more advanced line for processing wood sawing waste.

In addition, you can save on transportation costs by locating production near the source of sawdust. For example, placing a machine for the production of wood concrete blocks next to a sawmill.

In addition, you can use not gas or electricity for heating, but the same sawdust, which will reduce energy costs .

Another way to reduce costs is to enter into an agreement with the buyer , under which he will export finished products at his own expense.

At the same time there is always a risk that excessive cost reduction will lead to a drop in production volumes or a decrease in demand for products, so such decisions must be approached carefully and carefully.

Where to get wood waste inexpensively or free of charge

Any wood processing industry produces from 35 to 50% of various waste. Huge masses of greenery and shavings are formed during logging and primary wood processing. Green waste also constantly appears during the improvement of the city, parks, and public gardens (usually utility workers saw off branches and tops).

Another important source of waste is the remains of lumber that are generated during repairs, as well as used furniture, containers (pallets), and wooden products. If you make an agreement with organizations and collect this waste yourself, you can get it for free or for little money.

Advantages and disadvantages

We have created a table that includes the most popular types of business for processing wood sawing waste, as well as their advantages and disadvantages:

Type of business	Necessary equipment	Advantages	Flaws
Production of wood concrete and sawdust concrete blocks	Vibrating machine and concrete mixer	Low costs and quick start-up	The products are in demand only where budget housing is being built and the supply of bricks and blocks from other materials is difficult.
Production of chipboard, fibreboard, hardboard	Full cycle line	All types of material are in great demand	Very large financial investments are required
Production of fuel pellets and briquettes	Granulator or press	Low costs and quick start-up	It is difficult to find buyers for finished products
Pressed sawdust for cat and dog litter	Press	Low costs and quick start-up	There are buyers only in large cities
Production of pyrolysis gas	Pyrolysis plant	The finished product can be used for the needs of the enterprise	It is difficult to find buyers for finished products
Obtaining biofuel	Full cycle line	The finished product can be used for the needs of the enterprise	A very expensive license is required to sell
Growing mushrooms	Bags and steam generator	Minimum costs, demand throughout the country, as well as the ability to sell used material as good fertilizer	Large rooms with good ventilation and stable temperature are required
Production of organic insulation	Full cycle line	Environmentally friendly material	Very expensive line, difficulty finding buyers
Packing in bags	Bags	Does not require financial investment	Almost no profit

What documents are needed to open

The best option for organizing a small activity is to register an individual business. This organizational form is simple and quick to complete. To register an individual entrepreneur, they provide the tax service with a photocopy of the passport and a receipt for payment of the obligatory payment - state duties, and write an application in the appropriate form.

But if you plan to organize a large production, open branches or have several investors, it is best to register a legal entity. It is worth noting that large companies trust LLCs more. This organizational and legal form will allow you to conclude profitable supply and sales agreements. To register it, provide the company's charter and the decision of all founders to organize this type of business.

Creating a business plan

A business plan will help you use your own and borrowed funds correctly .
When compiling it, they carefully calculate all the costs necessary to create a business, as well as the expected profit, taking into account all the conditions.

When drawing up a business plan on your own, there is a high probability of error , because you need to know not only the production technology of a particular product, but also the peculiarities of Russian legislation and local conditions.

Therefore, it is better to entrust the preparation of this document to professionals .

There are many websites on the Internet offering business plan development services, so finding them is not difficult. However, we recommend that before concluding a contract, find reviews on the Internet about the selected site, and also contact those who have already used their services.

This will help you avoid being deceived by scammers , as well as drawing up a business plan by incompetent people.

General requirements for waste treatment

All wood waste is divided into two types:

• unprocessed (regular sawdust, shavings, greens);
• processed (remnants of production or old wooden products).

It is easiest to use untreated wood, as it is environmentally friendly. It can be used for subsequent production, put into compost, and finally, simply burned as fuel.

The processed waste is contaminated with various varnishes, paints, adhesives, and contains elements of plastic, glass and metal. Such wood must be cleaned before further use or disposal, but this process is more labor-intensive.

Alternative views

Despite the fact that any business is aimed at making a profit, sawdust can be used without making direct profit. For example, you can use them to heat a workshop or sawmill .

This will not lead to direct profit, but you will not only get rid of waste, but also seriously reduce heating costs, which to some extent is also a profit.

Another way of alternative business is the production of pyrolysis gas , because it can be used to power cars and tractors, as well as gas electric generators.

The calorific value of pyrolysis gas is almost half that of methane, propane or butane, so internal combustion engines running on it produce 30–45% of maximum power .

Considering that in normal modes the motor rarely produces more than 10% power, pyrolysis gas ensures its normal operation. The use of gas generators using sawdust will lead to a significant reduction in fuel costs .

A third alternative application is the creation of biofuels. According to Russian laws, selling alcohol-containing liquids without a very expensive license is prohibited, but no one bothers you to fill your company’s cars with alcohol .

As a result of alcohol production, serious savings occur in fuel costs , which can also be attributed to profit.

Another way to use waste is to create wood concrete and sawdust concrete blocks for the construction of new premises. After all, when expanding production, the main costs go to building materials, that is, bricks, cinder blocks, and so on.

Self-production of blocks will reduce the cost of building materials by more than 2 times ; moreover, such production does not require large financial investments. A vibrating machine for making blocks can be purchased for 10–15 thousand rubles, and the purchase of a concrete mixer will cost 5–15 thousand rubles.

Production of fibreboards

They are used both in the construction of buildings, finishing works, and in the production of furniture. In this case, the production plan is implemented in the following stages:

• wood cleaning and chopping;
• steaming;
• second stage of grinding;
• drying;
• molding;
• pressing;
• grinding;
• decorative finishing.

Today you can buy special lines for the production of such products, both foreign and domestic.

Cat litter

Fillers made from wood pellets quickly replaced silica gel fillers and gained popularity . The owners of their four-legged friends spare no expense and time to provide comfortable living conditions for their pets and themselves. I count myself among these; over the period of many years of keeping a cat in an apartment, I tried a lot of litter for toilets, but settled on sawdust. I brought a whole bag of coarse sawdust (so that the cat would carry less trash on its paws) from the carpentry shop and used it for a long time.

The cat liked the litter more than all the others, and so did I, since even the used one smelled more like wood. When I entrusted the care of the animal to a relative during my vacation, she appreciated my know-how and we began to bring more sawdust with an eye on her hamsters. Once everything ends and there is no longer a workshop, I had to switch again to purchased fillers.

I don’t know who came up with the idea of ​​selling pellets as a filler, but such a product sells out quickly in the pet store.

Now a kilogram of pellets in our store costs 40 rubles (!) and often the filler has to be ordered for future use.

Additional directions

Business can be built not only on sawdust processing. During cooking of the bark and sawdust of coniferous trees, as well as their greenery, condensation remains, which is also called still residue. It contains water-soluble biologically active substances, organic acids, chlorophylls, carotenes, provitamins, vitamins, etc. From it you can prepare a useful pine extract, which is used in the manufacture of cosmetics, medicinal preparations for animals, as well as feed additives for animals and birds.

The hard greens of coniferous trees remaining after cooking can be processed into feed meal for animals. This is another avenue that your business can use to generate additional revenue streams. Moreover, such flour has a bactericidal effect and is used as a preventive measure for tuberculosis in animals.

Another direction that a business can use is the production of fertilizer. The composting method is used for this. You will need to make special trenches and place waste wood pulp in them. During ripening, it accumulates nitrogen. Such fertilizers are used for highly mineralized and loamy soils.