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How to Set Up a 1 TPH Biomass Pellet Plant in India (2025) - Complete Guide

Total Process Flow – From Raw Material to Pellet Output

A 1 TPH plant converts raw agro/wood waste into compact biomass pellets. Here's the step-by-step process:

1.1 Raw Material Procurement & Storage

• Daily Requirement: ~24 tons/day (based on 8 hours shift) of raw biomass
• Common Inputs:
• Sawdust, wood chips, groundnut shells, paddy straw, sugarcane bagasse, cotton stalks, maize cobs

1.2 Size Reduction

• Machinery: Wood Chipper or Crusher
• Purpose: Break large waste (logs, stalks) into manageable 3–5 cm size

1.3 Fine Grinding

• Machinery: Hammer Mill
• Output: Powdery form (2–5 mm)
• Ensures uniformity for pellet press

1.4 Drying

• Machinery: Flash Dryer (for 15-25% MC) or Rotary Dryer (for >35% MC)
• Target Moisture Content: 10–12%

1.5 Pelletizing

• Core Machine: Biomass Pellet Mill (Ring Die for industrial scale)
• Output: Cylindrical pellets (6–10 mm dia, 10–30 mm length)
• Capacity: 1,000 kg/hour

1.6 Cooling & Screening

• Machinery: Pellet Cooler and Vibratory Screener
• Purpose: Harden and separate fine dust

1.7 Packing & Storage

• Packing in 25kg or 50kg bags or bulk for export
• Stored in dry shed with ventilation

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Section 2: Land, Utilities & Manpower Requirements

2.1 Land Requirements

For a 1 TPH pellet plant, plan for:

Area Type	Size (Approx.)
Built-up plant area	8,000–10,000 sq. ft.
Raw material yard	10,000 sq. ft.
Storage & packing	5,000 sq. ft.
Total Land	0.75–1 Acre

2.2 Utilities Required

Utility	Specs
Power	80–100 HP connected load (~75 kW)
Water	500–1,000 L/day (cooling + dust)
Manpower	8–12 persons
Fuel (for dryer)	Biomass or agro waste (self-sustaining)

Section 3: Raw Material – Types, GCV & Suitability

BELOW ARE IDEAL FEEDSTOCKS AND THEIR ENERGY CONTENT (GCV):

Raw Material	Moisture (Raw)	GCV (kcal/kg)	Availability	Pellet Suitability
Sawdust	10–15%	3500–4000	High	Excellent
Groundnut Shell	6–10%	4200–4500	Medium	Excellent
Paddy Husk	10–15%	3000–3200	High	Moderate (abrasive ash)
Cotton Stalk	12–20%	3500–3800	Seasonal	Good
Sugarcane Bagasse	30–50%	2300–2700	Very High	Needs Drying
Corn Cob	10–15%	3700–3900	Medium	Very Good
Bamboo Waste	15–25%	3800–4200	Region Specific	Very Good

Important: Uniform particle size and low moisture content are critical for pellet quality.

Section 4: Detailed Cost Breakdown for 1 TPH Plant

Component	Estimated Cost (INR)
Land & Civil Work	₹25–30 lakhs
Machinery & Pellet Line	₹45–60 lakhs
Dryer (Flash or Rotary)	₹10–15 lakhs
Electricals & Installation	₹5–8 lakhs
Dust Collector & Conveyors	₹5–7 lakhs
Packing System	₹2–4 lakhs
Working Capital (Raw + Ops)	₹10–15 lakhs
Total Project Cost	₹1.1 – ₹1.5 crore

Section 5: Subsidy & Financial Support in India (2025)

5.1 MNRE (Ministry of New and Renewable Energy)

Under the Waste to Energy Programme:

• Capital Subsidy: Up to ₹40 lakhs per TPH
• Eligibility:
• Registered MSMEs
• Plants using agro/wood waste (non-food biomass)
• Plant must supply to thermal users or industries

Website: https://mnre.gov.in

5.2 PMEGP (Prime Minister Employment Generation Programme)

• For small to medium entrepreneurs
• Loan up to ₹25 lakhs with 15–35% subsidy

5.3 NABARD / State Renewable Energy Boards

• Soft loans for green energy projects
• State-specific capital subsidies in Gujarat, MP, Punjab, Rajasthan

Tip: Get a DPR (Detailed Project Report) made and approach MSME-DI and District Industries Centre for approvals.

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Section 6: Best Pellet Machine Manufacturers in India (with Links)

⭐ Recommended for 1 TPH Projects:

Company	Location	Highlights	Website
FABON Engineering	Nashik Maharashtra	Turnkey biomass pellet plants, flash dryer, pellet burner	fabon.in
Servoday Group	Gujarat	Complete biomass and feed pellet solutions	servoday.com
Ecostan India	Punjab	Pellet machines, shredders, briquetting units	ecostan.com
Pellet India	Punjab	Specializes in agro pellet machines	pelletindia.com
Keyul Enterprise	Maharashtra	Mini pellet mill setups and agricultural shredder machines	keyulenterprise.com
Namdhari Agro	Punjab	Feed and pellet processing machinery	namdhariagro.com

FABON Engineering is among the top for complete solutions from raw material processing to pellet burner integration.

 

 

 

Section 7: Business Potential & ROI (Rough Estimate)

Item	Value (Approx.)
Production	8 tons/day (1 ton/hr x 8 hrs)
Selling Price (avg.)	₹8,000–₹10,000/ton
Daily Revenue	₹64,000–₹80,000
Raw Material Cost	₹2–3/kg (~₹20,000/day)
Electricity + Labor	₹10,000–₹12,000/day
Net Profit/Day	₹30,000–₹40,000
ROI Period	12–18 months

Bonus: Where Are Pellets Used?

• Industrial Boilers & Furnaces
• Thermal Power Plants (Co-firing)
• Brick Kilns, Spray Dryers
• Hotels & Commercial Kitchens
• Export to Europe, South Korea, Japan

Summary

Topic	Key Info
Land Needed	0.75–1 Acre
Investment	₹1.1–₹1.5 crore
Output	1 ton/hour
Subsidy	Up to ₹40 lakh (MNRE) + state-level benefits
Best Manufacturers	FABON, Servoday, Ecostan, Pellet India
Raw Material Needed/Day	24–30 tons (wet basis)
Profit Potential	₹30,000–₹40,000/day
ROI	~1–1.5 years

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Want Help Getting Started?

We can assist with :

• DPR (Detailed Project Report)
• List of machinery with quotation
• Manufacturer contact and plant layout
• Marketing channels for biomass pellets
• Subsidy application documentation

Visit : www.fabon.in