EFB pellet product has slowly becomes popular in the renewable energy market, and we are very confident the EFB pellet will sooner get the higher market share.  We are slowly seeing EFB pellet price advantage compare to other similar commodity, such as wood pellet price.

In order to propose a new renewable energy to t

Factors Affecting EFB Pellet Price

he end user, apart from advantages of the products, the availability and pricing are another 2 important factors for determining whether EFB pellet could becomes a popular commodity.  We have discuss several advantages for EFB pellet in previous article, and in this article, we would like to discuss about EFB pellet price factor.

Factors Determining EFB Pellet Price

Raw EFB Fibre Cost

Empty Fruit Bunch or we name as EFB in most cases is the discarded product  many years ago, now the efb has no more a free item from oil palm mill.  EFB price has direct impacted to the EFB pellet price.  Currently, EFB pellet manufacturer in Malaysia need to buy in order to acquire the EFB fibre from oil palm mill.

EFB Pellet Machine Setup and Routine Maintenance Cost

The EFB pellet machine maintenance cost will evenly added into the EFB pellet price, meanwhile pellet manufacturer will consider the pellet machine depreciation or amortization so that the amount also be added in part of the fix cost.

EFB Pellet Operation Cost

Operation cost can be classified into several field, such as:

Manpower cost.

Malaysia has enforced low salary scheme start from year 2013.

Factory Rental.

Supporting cost.

Even though the EFB pellet factory is highly automated, but there are many activities that need supporting facility, such as folk lift, shovel.  This could also part of the operation cost which always neglected.

Electrical Tariff.

Electrical tariff is one of the main cost for operation, perhaps it affected the EFB pellet price significantly.  Pellet machine requires huge electric current in order to press the EFB fibre into dense pellet.  Malaysia is one of the low electric tariff country in south east asia, please see the Malaysia electric tariff from TNB, and this is also one of the advantages to have high electric consumption plant being setup in low tariff country like Malaysia.

Packing Cost.

The efb pellet is packed under jumbo bag.  Even though the jumbo bag does not directly affected the EFB pellet quality but it may reach certain quality for protecting the EFB pellet during the entiring storage and handling stage.

Transportation for EFB fibre and EFB Pellet

Transportation is one of the main contributor for EFB pellet price, it significantly affected the EFB pellet price.  In order to keep a reasonable price ratio, the EFP pellet manufacturer need to consider and maintain at low transportation cost.

There are many other factors affected the EFB pellet price and cost, but above are a few which directly impact the pricing level that we should looking into.