Multi Raw Material Pellet Processing Plant for Energy in Austria


Multi Raw Material Pellet Processing Plant for Energy in Austria

A specialized biomass research company reached out to RICHI Machinery about building a 6t/h multi raw material pellet processing plant for energy in Austria with an annual capacity of 15,000 tons of blended biomass pellets (running 8 hours per day, 300 days per year).

The facility produces high-performance fuel pellets from a proprietary blend of wood powder, straw powder, and lignin powder. The operation also includes a 4-ton biomass test boiler for product R&D and supplies excess steam to a neighboring factory.

The client is located in Upper Austria, about 200km west of Vienna. Austria has one of the most developed biomass markets in Europe — 50% of Austria’s renewable energy comes from biomass. The country has 4+ million hectares of forest and a strong agricultural sector generating crop residues.

The client is unique: they are not just a pellet producer. They are an R&D company backed by a university biomass research center. They developed a proprietary pellet formulation that increases combustion efficiency by blending wood, straw, and lignin. This is an “industry-university-research” project. They needed a pilot-scale production line to commercialize their formula.

The facility is located on the site of an existing bio-chemical company (a lignin extraction plant). The client use 1,000m² of space (a single building) from the host company. The host company supplies raw material (wood powder and lignin powder from their lignin extraction process) and receives steam from the client’s boiler.

The symbiotic relationship:

  • Host company produces waste wood powder and lignin powder → sells to client as raw material
  • Client produces pellets and steam → steam goes back to host company for their production process
  • Client’s pellets are tested in the 4-ton boiler → data used to improve formula

capacity

investment

location

project type

Austria is a European leader in biomass energy:

ParameterValue
Forest cover48% of land area (4+ million hectares)
Agricultural land3+ million hectares
Straw production2+ million tons/year
Pellet consumption1.2+ million tons/year
Number of pellet producers200+
Export marketItaly, Germany, Switzerland

Key drivers for blended pellets in Austria:

DriverImpact
EU Renewable Energy Directive (RED II)Targets 32% renewable energy by 2030
Carbon tax (€30/ton CO2)Pellets cheaper than gas/oil
Coal phase-out (Austria coal-free since 2020)Biomass replacing coal in district heating
R&D incentivesGovernment supports innovative biomass projects
High pellet quality standards (ENplus)Premium prices for high-quality pellets

Target customers:

  • District heating plants (testing phase first, then commercial)
  • Industrial boilers
  • Residential pellet stoves (premium segment)

The client’s raw materials come from two sources. The host company (a lignin extraction plant) supplies wood powder and lignin powder. Straw powder is purchased from local farms.

Raw MaterialAnnual (tons)SourceCost (EUR/ton)USD/ton (1.05 EUR/USD)
Wood powder9,600Host company (waste from lignin extraction)20$21
Straw powder3,400Local farms (wheat, barley)30$31.50
Lignin powder2,000Host company (byproduct)40$42
Total input15,000

The client’s proprietary blend (developed at the university):

ComponentPercentageFunction
Wood powder64%Bulk material, energy content
Straw powder23%Lower cost, adds fiber
Lignin powder13%Natural binder, improves pellet durability and heating value

Why lignin is special: Lignin is a natural polymer that acts as a binder. When heated during pelletizing, lignin softens and glues the particles together. The client adds extra lignin powder (beyond what is naturally present in the wood) to improve pellet strength and combustion characteristics.

Raw material moisture: The host company’s wood powder and lignin powder are dry (8-12% moisture) from their drying process. Straw powder is sun-dried (10-15%). The client uses a dryer (steam from the 4-ton boiler) to reduce moisture further to <10%.

The client’s facility is a single 1,000m² building leased from the host company. The building is steel-framed with 8m ceiling height.

Building layout (1,000m²):

ZoneSize (approx.)Equipment
Raw material storage200m²Wood powder, straw powder, lignin powder
Production area~500m²Conveyors, pellet mills, bag filter
Finished product storage200m²Bagged pellets
Boiler room~100m²4 t/h biomass test boiler, bag filter
EquipmentQuantityPower (each)Function
Pellet mill2132 kW eachProducing 6-8mm fuel pellets
Belt conveyor25 kW eachMaterial transport
Screw conveyor13 kWFeeding to mills
Feed hopper1Raw material intake
Finished product bin1Pellet storage
Double-barrel bag filter2 sets15 kW fansDust collection
Electrical cabinets1Individual mill controls
4 t/h biomass boiler1Steam for drying, product testing, research
Boiler bag filter1 set15 kW fanBoiler exhaust

Equipment cost (FOB Qingdao): $285,000 USD (excluding boiler)

Why this configuration for multi-raw material blending (6 t/h, 15,000 tons/year):

1. 2 pellet mills instead of fewer large mills. This is a pilot/test facility, not a commercial production plant. The client runs different recipes (different blend ratios) and needs flexibility. With 2 small mills, they can run different settings on different mills simultaneously.

2. Double-barrel bag filter. Two dust collectors connected in parallel.

3. 4 t/h biomass test boiler. This is not for production heating — it’s for testing the client’s pellets. The boiler burns the pellets to measure combustion efficiency, emissions, and boiler performance. Excess steam is supplied to the host company.

4. No crusher or hammer mill. The raw materials are already powders — no size reduction needed.

5. Dryer (integrated with boiler). The client uses steam from the boiler for drying. This is a closed-loop system: boiler steam → dry raw material → pellets → boiler fuel.

This is a pilot-scale R&D fuel pellet plant. The process is simple but highly controlled.

Step 1: Raw Material Receiving

Trucks deliver wood powder, straw powder, and lignin powder. The client stores raw materials in bins in the 200m² raw material storage area.

Step 2: Blending

The client manually blends the three powders in the feed hopper. The hopper has a mixing auger to ensure uniform distribution.

The blending ratio (proprietary):

  • 64% wood powder
  • 23% straw powder
  • 13% lignin powder

Step 3: Drying (Using Boiler Steam)

The blended material is dried using steam from the 4 t/h biomass boiler. The dryer reduces moisture from 10-15% to <10%.

Why drying matters: Lignin activation requires specific moisture (8-12%). Too wet, pellets are soft. Too dry, lignin doesn’t bind properly.

Step 4: Pelletizing

Dried blended material is fed into 2 biomass pellet mills.

Pellet mill parameters (each):

ParameterValue
Die diameter450-500 mm
Die hole diameter6-8 mm
Compression ratio5.5:1
Die speed180-220 RPM
Operating temperature80-130°C (from friction)
Throughput per mill3-4 t/h
Total6-8 t/h

Pellet specifications (blended fuel pellets):

ParameterWood-only pelletsBlended pellets
Diameter6-8 mm6-8 mm
Length15-25 mm15-25 mm
Moisture8-10%8-10%
Density>1,000 kg/m³>1,000 kg/m³
Ash content<1.5%2-3%
Calorific value17-18 MJ/kg17-18 MJ/kg

The lignin advantage: The added lignin increases calorific value (lignin has higher energy density than cellulose) and improves pellet durability.

Step 5: Dust Collection

Each pellet mill has a dust collection hood connected to two double-barrel bag filters. Dust is captured and returned to the feed hopper.

Step 6: Cooling (Natural)

Hot pellets (80-90°C) drop into the finished product bin and then to the 200m² finished product storage area. The client spreads pellets on the floor to cool naturally.

Step 7: Testing (The Boiler)

The client uses the 4 t/h biomass boiler to test their pellets. The boiler burns the pellets while instruments measure:

  • Combustion efficiency
  • Emission levels (particulate, NOx, CO)
  • Ash characteristics
  • Boiler heat transfer

The boiler has a bag filter and 35m stack

The symbiotic relationship:

  • Boiler steam → host company for their lignin extraction process
  • Host company supplies the client with raw material
UtilityAnnual consumptionCost (EUR)Cost (USD at 1.05 EUR/USD)
Electricity270,000 kWh32,400$34,020
Water1,526 m³3,050$3,200
Biomass pellets (for boiler)2,200 tons(self-produced, opportunity cost ~330,000 EUR)$346,500

Electricity breakdown (annual, 300 days, 8 hours/day = 2,400 hours):

EquipmentkW averageHours/daykWh/daykWh/year
Pellet mills (2)90 (45 each avg)8720216,000
Conveyors (3)1088024,000
Bag filter fans (2)20816048,000
Boiler fans15812036,000
Lighting, office584012,000
Total5504,400336,000 kWh

Water usage: 1,526 m³/year is high for a facility with only 25 staff. This includes boiler make-up water, cooling water, and possibly other uses. The boiler has a recirculating system; only blowdown is replaced.

The client had specific requirements that shaped the biomass pellet plant equipment design:

Requirement 1: Proprietary blend of three different powders (wood, straw, lignin). The client needed to blend them precisely and run different formulations.

RICHI solution: A simple manual blending system in the feed hopper with a mixing auger. The client blends small batches (500-1,000 kg) for testing, then scales up.

Requirement 2: This is a pilot R&D facility, not a commercial production plant. The client needed flexibility, not maximum throughput.

RICHI solution: 2 biomass fuel pellet machines instead of 1 large ones. Each mill can run different settings (die size, compression ratio). The client can run multiple recipes simultaneously.

Requirement 3: The client has a 4-ton test boiler. They needed the boiler to be integrated with the production line (steam for drying) but also operate independently for R&D.

RICHI solution: The boiler has its own fuel feed system (feeding self-produced pellets). Steam lines connect to the dryer, with valves to isolate for R&D tests.

Requirement 4: The client had 25 staff (20 living on site), no prior pellet production experience.

RICHI solution: Provided a 3-week on-site training program:

  • Week 1: Basic safety, machine startup/shutdown, daily checks
  • Week 2: Adjusting pellet mill settings for different blends
  • Week 3: Boiler operation, emissions monitoring, data collection for R&D

The client’s blended pellets meet Austrian standards for biomass fuel (ÖNORM M 7135), which is similar to ENplus.

ParameterÖNORM M 7135Client’s blended pellets
Diameter6-10 mm6-8 mm
Length10-40 mm15-25 mm
Moisture≤10%8-10%
Density>1,000 kg/m³1,000-1,050 kg/m³
Ash content≤1.5% (for premium)2-3%
Calorific value≥16.5 MJ/kg17-18 MJ/kg

Prices (research project — not yet commercial): The client’s pellets are currently for R&D only. Commercial price would be 200-240 EUR/ton for industrial customers.

Austria’s biomass pellet market is mature and export-oriented. Key drivers for blended pellets:

1. Raw material optimization. Blending straw (cheaper) with wood (more expensive) reduces production cost. Straw pellets alone have higher ash; blending with wood reduces ash content.

2. Lignin as a binder. Adding lignin improves pellet durability, allowing lower compression ratios and reducing energy consumption in the pellet mill.

3. R&D incentives. The Austrian government (FFG — Austrian Research Promotion Agency) funds biomass innovation projects. The client’s university collaboration qualifies for grants.

4. Carbon tax (€30/ton CO2). Pellets have lower carbon emissions than fossil fuels.

Competition: There are 200+ pellet producers in Austria (1,000-100,000 tons/year). The client’s 15,000 tons/year puts them in the mid-tier.

Challenges the client is managing:

ChallengeMitigation
Proprietary blend (IP protection)The client has a patent application pending; formula is confidential
Small production scale (15,000 t/year)This is a pilot plant; commercial scale will be 50,000+ tons
Customer acceptance of blended pelletsTest results show higher efficiency than pure wood pellets
Export logistics (Austria is landlocked)Rail connections to Italy, Germany, Switzerland

The client’s breakeven point is 9,000 tons/year (60% capacity). At full capacity (15,000 tons/year), operating margin is about 15-20%. Payback on equipment ($485,000) is about 2.5 years.

Austria has abundant biomass resources, a mature pellet market, and strong government support for renewable energy. Here’s why you should consider this market:

Raw materials are available. Wood powder from sawmills and lignin from bio-refineries are waste products. Straw is abundant.

Lignin is an underutilized resource. Lignin has high energy density and acts as a natural binder. Blending lignin with wood/straw improves pellet quality.

Austria has strong R&D support. Government grants, tax incentives, and university partnerships make innovation viable.

The market is large but competitive. To succeed, you need a differentiated product. Blended pellets can compete on price (lower raw material cost) or performance (higher efficiency).

If you’re considering a multi-raw material biomass pellet manufacturing plant in Austria (or any country with biorefineries), RICHI can help. We’ve designed lines for wood, straw, lignin, and other biomass blends. We understand R&D requirements (flexibility, data collection) and can recommend the right equipment for your budget.

Contact us to discuss your biomass pellet project. Tell us about your raw materials (type, moisture, volume), target products (blended or single-feedstock), site conditions, and budget. We’ll prepare a customized process flow, equipment list, and budget estimate — no obligation.

RICHI Machinery – Multi-raw material pellet plants from 0.2 t/h to 90 t/h. Shipping from Qingdao to Koper port (Slovenia) then overland to Austria: 20-25 days. Installation support available in Austria within 2 weeks.

Consultation and Definitions
Wood Waste Pellet Plant for Sustainable Energy in Ghana
Equipment Manufacturing
equipment testing
Equipment delivery
Operator Training
Wood Pellet PlantWorkshop

Who we are

RICHI Machinery is one of the world’s leading suppliers of technology and services for the animal feed, aqua feed and pet food industries, also the largest pellet production line manufacturer in China.

Since 1995, RICHI’s vision to build a first-class enterprise, to foster first-class employees, and to make first-class contributions to society has never wavered.

In the past three decades, we have expanded our business to a wide range of areas, including animal feed mill equipment, aqua feed equipment, pet feed equipment, biomass pellet equipment, fertilizer equipment, cat litter equipment, municipal solid waste pellets equipment, etc.

Email
WhatsApp
click it!

LEAVE YOUR NEEDS

Keeping in touch with us is an effective way to solve all your problems. If you have any needs or questions, please leave your contact information, then RICHI technical consultants will send design, quotation, videos to your mailbox. You can also contact us directly via WhatsApp: +86 138 3838 9622

    Application:

    * We will store the information you have provided us. We will only use this information for the purpose of helping to answer your inquiries. We will not disclose your information to third parties.

    Scroll to Top