3–4 T/H Wood Pellet Plant in Laos
A completed Vientiane Province project using dry furniture offcuts and sawdust, two MZLH520 pellet mills and covered storage instead of a thermal dryer.

RICHI MACHINERY
Project Overview
This 3–4 T/H wood pellet plant in Laos was developed around a feedstock condition that many biomass projects do not have: most of the wood residue was already dry enough for direct processing. The customer sources clean furniture offcuts and sawdust around Vientiane Province and uses two parallel MZLH520 pellet mills to produce about 10,000 T/Y of 8 mm industrial fuel pellets.
The plant is scheduled for one 10-hour shift over about 320 operating days, giving 3,200 annual production hours. A 10,000 T/Y finished-product target therefore requires only about 3.1 T/H average output, which fits a 3–4 T/H line with normal maintenance and rainy-season interruptions. About 8 people cover receiving, size reduction, pelleting, cooling, packing, maintenance, warehouse work and basic administration. Completed fixed investment is approximately US$320,000, including the US$280,500 equipment package.
The project’s main engineering advantage is not “free sawdust”; it is supplier selection. Kiln-dried furniture offcuts normally arrive around 10–12% moisture, while sawdust is commonly around 12–15%. By separating wetter loads and using covered storage, the customer can avoid a thermal dryer without pretending that every truck is automatically suitable for pelleting.
That decision keeps the process focused on chipping, fine grinding, dust control, parallel pelleting, cooling, screening and packing. It also makes storage discipline part of the production system: a no-dryer project only remains a no-dryer project if the dry feedstock is protected through the rainy season.
3–4 T/H
capacity
US$320,000
investment
Laos
location
Biofuel
project type
RICHI MACHINERY
The Project Worked Because Dry Feedstock Was Contracted First
The customer had experience in timber trading and knew where furniture workshops and sawmills were generating usable residue. The first engineering question was therefore not whether wood pellets could be made in Laos; it was whether enough clean, dry material could be contracted close enough to Vientiane to keep a 3–4 T/H line supplied through the year.
An existing 2,000 m² site with about 800 m² of built space reduced the civil-work requirement. The former industrial building already had a concrete floor, basic power access and water, so the project budget could be concentrated on process equipment, dust control, storage improvement and installation rather than new construction.
The customer initially asked whether a 4 T/H line could operate on mixed wood waste without a dryer. The answer depended entirely on measured moisture and particle form.
Samples showed that the furniture offcuts were generally dry, while sawdust varied more with storage. That supported a no-dryer route, but only if receiving staff rejected or isolated wet loads and the site provided enough covered storage for moisture equalization before processing.
The final Laos wood pellet production line was therefore sized around dry-ton availability rather than a larger theoretical feedstock market. Two MZLH520 pellet mills provide about 3–4 T/H installed capacity, which is enough for the 10,000 T/Y plan without adding a third press or a thermal dryer that the actual feedstock does not require.
RICHI MACHINERY
Wood Offcuts and Sawdust Enter Different Preparation Routes
The customer uses several suppliers within a short regional radius rather than depending on one wood processor. Large offcuts and fine sawdust are received separately because their preparation needs are different: offcuts require chipping and hammer milling, while suitable sawdust can bypass primary size reduction.
| Raw Material | Annual Input (tons) | As-Received Moisture | Cost Basis | Source |
|---|---|---|---|---|
| Clean wood offcuts | 4,220 | 10–12% | Approx. US$15/ton | Furniture factories |
| Sawdust | 6,330 | 12–15% | Approx. US$12/ton | Sawmills and carving workshops |
| Total | 10,550 | Weighted basis about 11–13% | Approx. US$13/ton average |
The purchasing plan is managed by delivered tonnage, moisture and cleanliness. Loads containing treated timber, paint, glue or mixed demolition wood are outside the process boundary. Cost is considered together with usable dry matter, because a cheaper but wetter load can create storage and throughput problems even when no thermal dryer is installed.
About 10,550 T/Y of incoming material supports roughly 10,000 T/Y of finished pellets after normal moisture equalization, screening and process loss. The difference is treated as a combined moisture-and-handling balance rather than assigned to an unrealistically precise dust number. Small quantities of packaging and maintenance waste are managed separately from the biomass stream.
RICHI MACHINERY
No Dryer Means Storage Becomes Process Equipment
A wood pellet plant can omit thermal drying only when the feedstock supply supports it. This project receives a large share of residue from factories using dried lumber, so the moisture profile is fundamentally different from fresh sawmill waste or green tropical wood.
The no-dryer strategy rests on two controls:
Supplier control: Furniture offcuts are sourced from operations using kiln-dried lumber, while sawdust is checked at receiving and segregated if it is above the normal direct-pelleting window.
Covered storage: The site provides about 200 m² of indoor raw-material storage plus a 240 m² covered yard. Wetter loads can be held separately for natural air drying rather than mixed immediately into the production stream.
The completed 3–4 T/H wood pellet plant in Laos therefore has no rotary dryer or hot-air furnace. That reduces capital, fuel use, fire exposure and maintenance, but it also transfers more responsibility to receiving inspection and warehouse management.
During the wetter months, the plant can run below full capacity if dry residue supply tightens. That is preferable to feeding high-moisture wood into the pellet mills simply to maintain a nominal hourly rate. Maintenance and spare-parts work can also be scheduled into these lower-throughput periods.
RICHI MACHINERY
Two MZLH520 Pellet Mills Close the 10,000 T/Y Capacity Plan
| Equipment | Quantity | Power | Function |
|---|---|---|---|
| Wood chipper machine | 1 | 22 kW | Primary size reduction for clean offcuts |
| Wood pellet hammer mill | 2 | 37 kW each | Fine grinding of chips and oversize residue |
| Cyclone separators | 2 | 3.7 kW each | Material-air separation after grinding |
| Baghouse filters | 2 | 1.5 kW each | Fine dust collection |
| Bucket elevators | 3 | 1.5 kW each | Material transfer between process levels |
| Wood pellet mills | 2 × MZLH520 | 132 kW each | Main pelleting, about 1.5–2.0 T/H per machine |
| Belt conveyor | 8 meters | 1.5 kW | Horizontal transfer |
| Unloaders | 2 | 1.1 kW / 1.5 kW | Controlled hopper discharge |
| Bin dischargers | 3 | 1.1 kW each | Prevent bridging and regulate feeding |
| Wheel loader | 1 | Diesel | Raw-material handling |
| Hand pallet truck | 1 | Manual | Finished-bag handling |
| Counterflow cooler + pellet screen | 1 set | Project-matched | Cool hot pellets and remove fines before packing |
Main equipment package (EXW Qingdao): approximately US$280,500
The wheel loader was purchased locally in Vientiane so maintenance and common service parts could be sourced in-country. The imported package focuses on the production equipment that defines particle size, pellet formation, cooling, dust control and line reliability.
Shipping: The main shipment moved from Qingdao through the regional sea-and-rail logistics chain into the Vientiane area, using the rail-connected dry-port network for inland transfer. The documented freight basis is about US$4,000 including the final local trucking segment. Completed fixed investment is approximately US$320,000 after local electrical work, installation, site modifications and startup spares are added to the equipment value.
RICHI MACHINERY
A Small Site Works Because Material Flow Is Linear
The customer reused a former industrial building on a 2,000 m² plot, with about 800 m² of built space. The plant is not spread across the property randomly: incoming wood enters from one side, size reduction and pelleting occupy the central production zone, and finished bags move toward the warehouse and dispatch side.
| Area | Size (m²) | Function |
|---|---|---|
| Production workshop | 250 | Chipping, grinding, pelleting, cooling, screening and packing |
| Raw material indoor storage | 200 | Dry sawdust and selected offcuts |
| Covered raw material yard | 240 | Large offcuts and isolated wetter material |
| Finished goods storage | 120 | Bagged 8 mm pellets awaiting dispatch |
| Office | 160 | Administration, sales and production records |
| Toilet | 1.5 | Staff use |
| Wastewater storage | 105 m³ | Domestic wastewater management |
| Fire water pond | 225 m³ | Emergency fire protection reserve |
| Hazardous waste storage | 12 | Used oil, lubricants and maintenance waste |
The 7 m eave height gives adequate clearance for the wood fuel pellet making machines, elevators, cooler and dust-control ducting. The production route moves from receiving and size reduction toward the pellet section and finished storage without repeatedly crossing forklift paths.
Domestic wastewater is kept separate from the production process. Fire-water storage and a dedicated hazardous-waste area support basic site management, while the pellet line itself does not generate process wastewater because there is no wet manufacturing stage.
RICHI MACHINERY
Dry Material Can Bypass Equipment It Does Not Need
The 3–4 T/H wood pellet plant in Laos uses a selective process route. Large offcuts require chipping and grinding, while suitable sawdust can bypass primary size reduction. All pellet-grade material still passes moisture inspection before it reaches the two MZLH520 presses.
Step 1 – Raw material receiving and storage
Offcuts and sawdust are unloaded into separate covered zones. Moisture and contamination are checked before release to production. The plant keeps a moderate working inventory rather than exposing large seasonal stockpiles to humid conditions.
Step 2 – Chipping
Large furniture offcuts enter the wood chipper and are reduced to manageable chips. Fine sawdust and small residues that already meet the primary size requirement bypass this step.
Step 3 – Hammer milling
Two hammer mills share the fine-grinding duty for chips and oversize material. Final particle size is controlled for stable MZLH520 feeding rather than ground finer than necessary. Suitable sawdust can join the stream downstream of the hammer mills.
Step 4 – Dust separation
Cyclones remove the bulk of entrained material from the conveying air, while baghouse filters capture the finer dust fraction. Clean recoverable fines are returned in controlled quantities instead of being counted as a separate product stream.
Step 5 – Pelleting
Two wood chip pellet machines operate as the parallel pelleting section. In this project they are MZLH520 units rated at about 1.5–2.0 T/H each. The combined 3–4 T/H installed range supports the 10,000 T/Y plan with 8 mm dies for industrial fuel. The two wood pellet presses do not have to run at maximum nameplate capacity every hour because annual average demand is about 3.1 T/H.
Pellet formation relies on the natural lignin in clean wood fiber. Feed moisture is checked before pelleting, and only small conditioning adjustments are made when required; there is no routine chemical binder addition.
Step 6 – Cooling screening and packing
Hot pellets enter a counterflow cooler before the end of the wood pellet production line. A screen removes fines after cooling, and 8 mm finished pellets are then packed mainly in 25 kg woven bags or prepared for larger industrial orders.
Step 7 – Dust collection
The two baghouse filters collect fine dust from grinding, transfer and wood granulator machine operating points. Ducting and flexible seals reduce fugitive dust at connections, while recoverable clean fines are returned to the production stream.
RICHI MACHINERY
Dust Control Is Designed Into the No-Dryer Route
Without a thermal dryer, the project avoids a continuous hot-gas emission source. The main air-quality control task is dry dust from chipping, grinding, transfer and pelleting. The plant therefore uses mechanical separation, filtration and enclosure at the process points that actually generate particulate matter.
- Two cyclone separators for coarse material-air separation after grinding
- Two baghouse filters for fine dust capture at grinding and pelleting points
- Enclosed production areas to contain fugitive dust and support housekeeping
- Flexible seals and closed transfer connections between major equipment
The environmental design basis retained from the project includes:
- Estimated total process dust generation: about 0.4748 T/Y
- Estimated captured material returned through cyclone and baghouse collection: about 0.1638 T/Y
- Workshop fugitive-dust estimate: about 0.2225 T/Y before routine housekeeping recovery
- Reported design emission rate: about 0.0254 kg/h
These figures are treated as project design data rather than as a universal Lao emission limit. Filter condition, enclosure and housekeeping determine whether actual operating dust remains controlled, so the client maintains the baghouses and seals as routine production equipment.
RICHI MACHINERY
Operating Capacity Matters More Than a Profit Projection
The wood pellet processing plant is planned around annual tonnage, utilization and utilities rather than a fixed monthly profit figure. Selling prices, electricity tariffs and residue costs change, so the project case uses engineering quantities buyers can verify.
| Operating Item | Design Basis | Annual Planning Range | Notes |
|---|---|---|---|
| Wood residue input | Offcuts + sawdust | Approx. 10,550 T/Y | Supplier moisture checked at receiving |
| Electricity | Two 132 kW pellet mills + grinding + cooling + conveying | Approx. 800,000–950,000 kWh/Y | Depends on bypass rate and mill utilization |
| Direct workforce | Approx. 8 people | 1 shift | Production, warehouse, maintenance and supervision |
| Thermal fuel | No continuous dryer | Not required for normal operation | Storage control replaces routine thermal drying |
| Maintenance | Dies, rollers, screens, bearings and filter bags | Scheduled by hours and condition | Two presses allow limited production during service |
| Completed fixed investment | Existing-site project | Approx. US$320,000 | Includes imported equipment and site integration |
The annual production balance is:
| Finished Product | Annual Output | Typical Size | Main Use |
|---|---|---|---|
| Industrial wood pellets | Approx. 10,000 T/Y | 8 mm | Boilers and compatible process-heat systems |
At 3,200 scheduled hours, 10,000 T/Y requires about 3.1 T/H average output. This leaves practical margin inside the two-MZLH520 installed range and explains why the project can reduce production during wetter months without losing the annual target.
RICHI MACHINERY
Laos Supports the Feedstock More Clearly Than the Sales Claim
Wood processing is an established manufacturing activity in Laos, including sawmills, furniture workshops and other secondary wood processors. That makes clean offcuts and sawdust a realistic feedstock base. The pellet market itself should be developed through specific industrial heat users rather than described as automatically large.
- Furniture and wood-processing businesses can supply dry residues when kiln-dried lumber is used
- Industrial boilers and kilns are potential users where burner and fuel-handling systems are compatible with 8 mm pellets
- Regional logistics and dry storage influence competitiveness because Laos is landlocked and humid-season handling matters
Suitable buyer categories include:
- Garment and light-industry factories with biomass-capable boilers
- Brick, ceramic and other process-heat users able to receive bagged or bulk pellets
- Distributors serving commercial users in Vientiane and nearby industrial areas
Expansion should follow contracted feedstock and verified sales. A third wood pelletizer would not be the first upgrade unless covered storage, cooling, packing and electrical capacity are also enlarged.
RICHI MACHINERY
Rainy-Season Control Became the Main Operating Lesson
The most useful operating lessons came from feedstock protection and maintenance planning rather than from one month of sales figures.
What works well:
- No thermal dryer is required when the contracted residue remains inside the direct-pelleting moisture window
- Covered storage protects the project’s main capital-saving assumption during the rainy season
- Two MZLH520 pellet mills provide redundancy and allow limited production while one press is being serviced
What needs continued attention:
- More covered raw-material area gives the operator better control when several wet loads arrive together
- Baghouse inspection intervals should be based on pressure drop and dust load rather than one fixed calendar interval
- A forklift becomes more useful as bagged output and warehouse turnover increase
Maintenance capability also matters because the project is outside a major machinery-manufacturing hub. The operating plan therefore includes local mechanical support, operator training and an on-site stock of critical wear parts so routine service does not become a long import delay.
RICHI MACHINERY
RICHI Scope Focused on a Dryer-Free Production Route
For this 3–4 T/H wood pellet plant in Laos, the engineering scope was built around keeping dry residues dry, separating offcuts from sawdust and matching two pellet mills to the annual production target.
- Process design – Chipping and grinding bypass routes, dust-control integration, cooling, screening and workshop layout.
- Equipment package – Chipper, two hammer mills, cyclones, baghouses, two MZLH520 pellet mills, cooler, screen and conveyors.
- Installation supervision – Site guidance for equipment alignment, electrical interfaces, ducting and commissioning.
- Operator training – Moisture checks, die/roller adjustment, bypass decisions, cooler operation and dust-system maintenance.
- Spare parts kit – Pellet-mill wear parts, hammer-mill screens, bearings, belts and baghouse filter consumables.
A handheld moisture meter is treated as operating equipment rather than an optional accessory because the entire no-dryer process depends on identifying wet material before it reaches the pellet section.
RICHI MACHINERY
A Laos Pellet Plant Should Be Designed Around the Wet Season
For a similar wood pellet plant construction project, the key question is whether the feedstock remains dry enough through the full year. A 3–4 T/H line can be technically simple only when the supply and storage system protect the direct-pelleting moisture window.
- Skip a dryer only when measurements support it. Kiln-dried offcuts and dry sawdust can justify a no-dryer route; green wood cannot.
- Covered storage is part of the process. Rainy-season moisture can turn a simple line into an unstable one if raw material is left exposed.
- Build demand around compatible heat users. Industrial boilers and kilns should be checked for fuel size, ash handling and feeding requirements before sales are assumed.
- Keep press and filter wear parts on site. Two pellet mills improve availability only when dies, rollers, bearings and filter consumables are ready for scheduled service.
The strongest version of this project is not “cheap wood waste becomes high profit.” It is a controlled dry-residue system that converts about 10,550 T/Y of local wood waste into roughly 10,000 T/Y of 8 mm pellets with no continuous dryer, a realistic 3–4 T/H installed capacity and storage designed for Laos’s seasonal moisture conditions.
Contact us for a site assessment or equipment quote. We can provide references from this biomass pellet project upon request.
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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.

1995
RICHI Established

2000+
Serving More Than 2000 Customers

120+
RICHI Employees

140+
Exported To 140 Countries


