Growth of EFB Pellet Industry

DST has been involving in pellet manufacturing since several years ago.  Especially while we started our business in EFB pellet, we have to spend substantial effort in introducing the EFB pellet to the biomass industry.

After so many years, we are seeing people aware of EFB pellet and know how to differentiate them from the wood pellet.  Moreover, we are seeing lengthy following comments leave in our post, especially we are seeing so many traders, manufacturers, or even pellet machine manufacturers leave their contact here.

Now is the beginning of year 2017, I would like to put up the top 10 companies prioritize by Google and Baidu after we perform the search for keyword “ EFB Pellet”.

Companies Involve in EFB Pellet

From the Google search engine, the top 3 results are from Malaysia EFB Pellet Manufacturer, which includes DST which having the website www.biofuelresource.com.  The other 5 companies are pellet machine manufacturers from China.

From the Baidu search engine, companies register in Alibaba are getting a good ranking.  If we focus on a company with own website, 9/10 companies are pellet machine manufacturer from ChinaBiofuel Resource is the only pellet manufacturer from Malaysia that happens to appears from the Baidu search.

EFB Pellet
EFB Pellet

Both Google and Baidu search result has revealed that there are many China pellet machine manufacturers in the market.  They are not only having good technology in producing quality pellet machines but also having good position in search engine.

EFB Pelleting Process

So many pellet machine manufacturers had to put their resources into studying how to manufacture quality EFB pellets.  From their study, we believe they should be able to see the differences between wood pellet and EFB Pellet.

Empty fruit bunch (EFB) is the raw material of EFB pellet but it has much to involve if want to produce pellet.  After so many years working with the EFB pellet manufacturer, the pellet machine manufacturer has better knowledge of the EFB pelleting process.  With this knowledge, we are seeing significant improvement on the pelleting machine.

As compare to the pelleting machine several years ago, most of the current pelleting machine builds with the latest technology and improve on the certain deficiency.  The EFB pellet produce from the latest pelleting machine should achieve better product quality.

Potential of EFB Pellet

Even though EFB pellet becomes more acceptable in biomass industry however there are still a huge marketing gap if compare with wood pellet.  Entire biomass industry bias to wood pellet more than EFB pellet.

Even though Malaysia has substantial amount of shredded EFB, however only a small fraction is used to produce EFB pellet.  Most of the shredded EFB is used for biomass in raw form.

Since we are seeing more advanced EFB pellet machines available in the market, hence we expect more people could participate in manufacturing EFB pellet In Malaysia or Indonesia.  With everybody’s contribution, we believe EFB pellet could have better acceptance in the biomass market.

Oil Palm Fibre Products and Biomass Commodities

Through-out our discussion with many readers, we come across several oil palm by products which causing ambiguity to some reader.  Over here, we would like to differentiate below few commodities so that we could be clearer what the commodity we need.

By-product of Palm Oil Process

  • EFB. EFB stands for Empty Fruit Bunch.  This refers to the raw bunch with no process.  The EFB from the oil palm mill always comes in wet form.  It also consists of small percent of oil which could be extracted further.  The fibre in EFB is very long.
  • Shredded EFB. The wet form EFB will send for press and shredded process, the product named as shredded EFB.  The shredded EFB still under wet form but the access water content has been squeezed out!  The oil content also being squeezed during this process.  After the shredded process, the core of the EFB will tear into shorter form, at this moment, the fibre extract from shredded EFB with the range 100-200mm length.
  • Long Fibre. Long fibre is the fibre extract from shredded EFB.  The fibre is more coarse and long than other part of oil palm fibre.  In most cases, the long fibre is always packed under bale form for export purpose.
  • Short Fibre. Short fibre is the residue fibre from palm fibre process.  Manufacturer will screen out the long fibre and the short fibre is the left over from the process.  Besides the length, short fibre is having very close characteristic as long fibre as they are going through similar process.  Short fibre moisture maintains at the range 12-15%, it is the best condition and raw material process to EFB pellet.
  • Mesocarp fibre. This is the fibre extract from the oil palm fruit.  The mesocarp fibre is short in nature however it is not same as short fibre as we explain in early section.  Because the mesocarp fibre is the fibre direct extract from the oil palm fruit, the fibre is length is about 20mm or shorter.  But the diameter is finer and much oily as compare to the short fibre retrieve from shredded EFB.

In Malaysia, there are many people trade the above commodities or oil palm by-product.  DST is one of the companies involved in above commodities for more than 10 years.   With above explanation about the terms, we hope that it will be better for everyone to communicate toward the same biomass commodity.

There are much more oil palms by product available besides the above commodities such as palm kernel, decanter cake, etc.  However over this article we only discuss some related to fibre category.  In future, we may talk more on other commodities.

EFB Pellet to Replace Wood Pellet?

EFB Pellet

EFB Pellet
EFB Pellet

EFB Pellet is not a new biomass product available in the market.  It has been promote in the market to act as another alternative of biomass commodity.  Unfortunately EFB pellet still not widely accept by most buyer.

In this article, we will review the basic differences for EFB pellet vs. wood pellet.  Further more, we will share some of our expereince and thought why we think EFB pellet should gain high potential in renewable energy sector.

EFB Pellet or Wood Pellet?

DST has been in renewable energy sector for several years, we know the strength and potential of biomass commodity in available in Malaysia especially Malaysia government had launched 1MBAS project not long ago.  The country is looking at biomass to generate 30million Ringgit in year 2020.  Through our pass experience, we receive more inquiry about wood pellet instead of EFB pellet, why this happen?

Saw Dust Pellet
Saw Dust Pellet

Wood pellet has been in the biomass market for many years, especially Korea and Japan biomass sector has accepted wood pellet in their power plant.  EFB pellet was initially invented acting as a substitution of wood pellet.  Since we talk about substitution, we have compare both commodities from several aspects, such as pricing, specification, reliability and sustainability.

In order to turn EFB firbe into EFB pellet, the pellet manufacturer has to setup a pelletize process which mainly cover these steps:

  • De-humidified
  • Drying
  • Cutting into size or grinding
  • Pelletize

The process is pretty straight forward however involve substantial amount of energy.  This has make the EFB pellet cost maintain at higher level as compare to wood pellet.  Another draw back for EFB pellet is high ash content as compare to Wood Pellet.

Is EFB Facility Over Size?

We have involved in EFB pellet and other biomass commodity for more than 10 years, we are seeing the progress for this industry.  From our perspective, many pellet manufacturers no matter in Malaysia or Indonasia are over optimistic about this commodity.

We learn through out the manufacturing process which we are very clear about the process challenge.  Pelletize EFB fibre are totally difference than pelletize saw dust.  We got to have the appropriate process setup in order to manufacture a quality product.

Over optimistic about the EFB pellet has cause many pellet manufacturers invested in the industry, but at the end find out insufficient customer order to maintain the operation.  I feel sad while I am putting up this statement but this is the fact.

What is the Potential for EFB Pellet?

Pelletize EFB fibre is a matual technology and what we lack off is the marketing part.  Many people still consider EFB pellet as a commodity for biomass.  As EFB pellet manufacturer, we have to broaden our perspective or even strectch out our sense if we want to elevate the potential of EFB pellet.

Besides the manufacturer, Malaysia government should play an important role on promoting EFB Pellet in the world.  Malaysia government has setup a department, NBS, National Biomass Strategy to chair the biomass activities.  We really hope this department could bring our EFB pellet to worldwide.

If we always limited ourselves on replacing wood pellet with EFB pellet, I think this is a lose game for EFB pellet.   EFB pellet should have wider and broader potential if we are able to adopt this commodity in other application.

EFB Pellet Business Environment

Saw Dust Pellet

EFB Pellet
EFB Pellet

EFB pellet is a biomass product claiming for renewable energy.  Many people was getting excited about this product and start investing in the field while they start aware this product.  DST has been involved in biomass renewable energy for many years, and we definitely do not want to miss out the opportunity on EFB pellet sactor.

Establish a sustainable EFB pellet business is a difference story than just an investment.  We have much more to consider and execute in order to make it a sustainable and profitable.  Through pass years of operating our EFB pellet manufacturing, we are very sure the pellet should be one of the future as energy becomes scarcity.  However, we do acknowledge there are still challenges along the way.

In this article, we are going to discuss several business challenges for starting up an EFB pellet business in Malaysia.

Challenges for EFB Pellet Business

EFB Pellet manufacturer process setup
EFB Pellet manufacturer process setup

All business is facing it own challenge along the road, this imply to EFB pellet business environment too!  The business owner may miss out certain

  1. Raw Material of EFB Pellet
  2. Skill Worker Availability
  3. Efficiency and Operating Cost
  4. Export/Import Regulation and Tax

What other alternative user could choose besides EFB pellet

  1. Natural Gas
  2. Petroleum product
  3. Other renewable commodity

Is EFB Pellet a Growing Business?

From our pass experience, we think EFB pellet should be a valuable product but it should not be limited in biomass or renewable sector only.

Empty fruit bunch or EFB is a by-product from palm oil industry, must of the fibre has been used as the prime material for fibre mattress, biomass or landscape.  Field industry has never stop exploring other opportunity for EFB.  Pelletize EFB is one of the strategy the field engineer applied.

Currently the EFB pellet has mostly used in biomass industry however there are a few more sectors who need pelletize EFB.  However difference industry may have respective pelletize condition.  At this moment, we are seeing some obstacle for EFB pellet business in biomass sectos.  Since DST has participarte in pelleting business for many in Malaysia, we are having better opportunity to widen up our EFB pellet application and business.

Biofuel Resource is a Pellet Supplier from Malaysia
Biofuel Resource is a Pellet Supplier from Malaysia

Is Malaysia Government provides a Positive EFB Pellet Business Environment?

Investing million Ringgit amout setup an EFB pellet plant could be a challenging decision if we are unable to get support from government.  Investor could look for tax exemption from Malaysia government or MIDA.

Besides tax exemption, Malaysia government also established certain organization such as SP Biomass in promoting the EFB pellet to Euro country.  There are also exhibition, symposium, conference being held through out the years.  You could always find the first hand information regarding Malaysia biomass or EFB pellet via SP Biomass.

Like we explain earlier, we agree, many investor who participate in EFB pellet business in Malaysia is facing great challenge this year.  Besides the support from Malaysia government, as an EFB pellet investor or SME, we are having our own responsibility to expand the EFB plellet from Biomass to other sectors.   The industry will be always there and just how we are going to position ourselves for next regime.

If you are one of the EFB pellet manufacturer, you are welcome leave your EFB Pellet business challenges which currently you are facing in below comments column.  We may have some dialogue or brainstorm to widen up the business opportunity.

Did EFB Pellet Accepted by the Biomass Market

EFB Pellet

DST is one of the EFB pellet manufacturer and supplier in Malaysia. We are getting many inquiry from various espects EFB pellet however we are seeing less trading after the inquiry. Many inquiries also indicate potential buyers are looking for alternative energy resources.

EFB Pellet
EFB Pellet

China government has come out an aggressive regulation to reduce and restrict the use of coal in order to improve air quality. Biomass is definitely one of the alternative energy source to fill up the energy gap from coal, and EFB pellet definitely one of the choices.

Current Available Biomass in the Market

Currently there are several biomass material, such as wood chip, Palm Kernel Shell (PKS), wood pellet. Most of the biomass above has been existed in the market for a period of time. With the large energy demanding gap from China, many buyers has extended their needs to other resources.

DST is one of the biomass supplier in Malaysia for many years. We are exploring the potential of EFB pellet as the new biomass resources since several years ago. We are anticipating a shortage of biomass resources in energy sector after coal has been banned, we strongly believe EFB pellet should be the hot selling biomass resource product.

DST Corporate Organization
DST Corporate Profile Organization

Challenges for EFB Pellet to be Market

Through out our marketing in biomass sector, we face several challenges while marketing the EFB pellet for the industry. These challenges include:

  • Pricing. Pelleting is consuming huge energy in a pellet mill. In order to manufacture a quality EFB pellet, the dry EFB fibre shall be heavily compress to high density pellet. DST has emphasized this pelleting process to ensure our EFB pellet quality, this also implies that we are producing the EFB pellet with no trade off in the manufacturing cost. Perhaps our EFB pellet cost is not under wood pellet price.
  • Packing and Handling. EFB pellet is a high density pellet but it requires extra care handling to prevent causing damage or broken. The EFB pellet shall be packed in jumbo bag and follow with proper handling through out the transportation process. A lot of handling guidances have to consider to ensure the EFB pellet is nicely delivery to customer site.
  • Availability. For our pellet mill setup, our pellet manufacturing ability is set at 1000MT per month. 1000MT should be a small amount as compare to a factory needs, but 1000MT of EFB pellet has already made us almost like non-stop for a month. Many companies’ buyer have rejected our proposal as we only have 1000MT EFB pellet per month as this volume is much less than their monthly consumption.

The above challenges should not be the stopper for DST to promote EFB pellet to the market. However this has slow down the EFB pellet to be marketed in industry application. Currently DST has worked with several boiler manufactuers in Malaysia to ensure our product suit the industry.

Will Market Accept EFB Pellet as Biomass Alternative?

Since a EFB pellet is manufacture via dedicate pelleting process, this also implies that the EFB pellet has the higher cost as compare to other raw biomass products such as PKS and wood-chip. In occasion, the EFB pellet is selling slightly higher price compare with wood pellet. With the high costing, EFB pellet has become less cost effective for many industries even though this product has other advantageous.

As the main EFB pellet supplier, DST has seek all possibility to market the EFB pellet. So far, we agree this product only means for a small niche of customers especially in Japan and Korea market. We have the flexibility to pack and handle the EFB pellet so that consumer customer needs are well taken care.

In short, since we launch our EFB pellet product, we know this is our upcoming biomass resource in energy sector but need sometime for customer to adopt especially the industry sector. DST is still very patient while come into promoting this product in the market, and we believe EFB pellet should be our future.

Palm Pellet Choices

There are many variety of palm pellet available in biomass market, namely EFB pellet, Mesocarp pellet, oil palm tree trunk pellet.  Among all, EFB pellet is widely known in the market.  Apart from the palm pellet, there is also palm briquette.

EFB Pellet
EFB Pellet

The differences of Palm Pellet

The main difference for various type of palm pellet is named after difference raw material used.

EFB Pellet.

The raw material for EFB pellet is empty fruit bunch discarded from crude palm oil mill.

Mesocarp pellet.

Mesocarp is not a commonly know term by majority.  Mesocarp fibre stands for the fibre from the oil palm fruit.  This is a short fibre.

Trunk pellet.

The raw material is oil palm tree trunk after demolish from the oil palm estate.  In ordinary condition, oil palm estate will carry out re-planting after the oil palm tree reach 20 years, the demolish palm tree trunk can also send to pelleting factory for doing trunk pellet.

Palm Pellet Pelleting Process

Regardless any oil palm waste material, the waste will go through series a comprehensive pelleting process in order to manufacture quality pellet product.  The pelleting process could be simplified to crushing, drying, pelleting, cooling and packing.  For details elaboration, please refer to palm pellet pelleting process.

Why Malaysia becomes Famous Palm Pellet Manufacturer

Malaysia is a country with rich of oil palm product.  EFB contribute the major portion of overall oil palm waste.  There is 20 million ton of EFB available in Malaysia, most of the abundance EFB being used as raw biomass material or retrieving long fibre for mattress or fibre board.

Due to the constrain and increase in fossil fuel price, we are seeing the needs for converting EFB into palm pellet.  Palm pellet is a more efficient heating energy compare to raw EFB.  There are several well establish palm pellet manufacturer in Malaysia and we estimate 1 million ton of palm pellet per year suppling to the market.

Apart from the raw material availability, technical and R&D are another 2 major factors making Malaysia a palm pellet manufacturer in this district.  Malaysia government or MPOB has invested substantial amount every year in researching and developing new application.

Oil palm waste has becomes an importance biomass commodity and it derivative product such as EFB fibre, palm pellet, palm briquette will more suitable for oversea market.  Palm fibre contribute a huge portion of biomass energy in Malaysia.

DST is supplying biomass commodity such as palm pellet, efb pellet, palm briquette and palm kernel shell to worldwide market.  We welcome any enquiry about your biomass needs.

Biomass Energy Resource from Malaysia

Even though Malaysia is a fossil fuel export country, but this does not stop the country from committing in developing renewable energy.  Malaysia is a country rich in biomass energy resource, many materials can easily convert to biomass.

Biomass Energy Resource
Biomass Energy Resource

There are several common biomass renewable energy in Malaysia, such as palm pellet, EFB pellet, EFB, palm kernel shell, wood chip and saw dust pellet.  In this article, we will discuss slightly more about the prospect for each biomass energy resource in Malaysia.

Biomass Energy Resources in Malaysia

EFB

EFB stands for empty fruit bunch discarded from palm oil mill.  The EFB will go through pressed and shredded process before it can be used as biomass power plant.  The shredded efb will always high in moisture and not favourable for shipping.

Palm kernel shell

Or in abbreviation PKS.  The palm kernel shell is a good biomass resource with high calorific value, low moisture and easy transportation and handling.  Unfortunately the supply of palm kernel shell is saturated.  A large portion of palm kernel shell has been used at local Malaysia market.

Mesocarp Fibre

This short and dry fibre is favourable in biomass for heat retrieve, however the volume is small and unable to support the biomass industry.

Rice Hust

This is the husk salvage from rice mill.  The rice husk is light and having high silica content.  Not very suitable for biomass.  Perhaps the light weight also not favourable for biomass boiler.

Coconut fibre

Most of the coconut plantation in Malaysia has been converted to oil palm estate, hence the coconut fibre is shrinking from year to year.  It left very limited coconut fibre available in the market.  Coconut fibre has not been used as biomass purpose.

Wood chip

Malaysia is a country cover with wood lodge.  The left over wood will send to crushing process for chopping it into chip form.  Wood chip is a renewable energy commodity however the re-planting is taking longer time before the tree mature.  The wood chip volume is at decreasing stage meanwhile price is getting higher.

Wood pellet

The raw material of wood pellet is saw dust, so it also name as saw dust pellet.  Wood pellet is resemble as wood chip.  It provides similar heating effect and function as wood chip.  However the price of wood pellet is getting higher.

EFB pellet

This is the new pellet product manufacturer at Malaysia.  The shredded EFB will go through EFB pelletize process for making EFB pellet.  EFB pellet consider relatively new as the biomass commodity for biomass market.  Due to it availability, we foresee EFB pellet will become one of the major biomass energy choices in the market.

 

Malaysia is the country rich in tree and many others agriculture commodities, many commodities has been widely used as the biomass energy resources in Malaysia.  Oil palm is one of the larger agriculture products and many researches / application has developed for converting the by-product of palm oil waste into biomass commodity.  The prospect of oil palm related biomass energy resource is bright as it has becomes major sustainable energy in Malaysia and world wide market,

Malaysia Pellet Supplier

Biofuel Resource is a Pellet Supplier from Malaysia
Biofuel Resource is a Pellet Supplier from Malaysia

There are many pellet manufacturers and supplier in the world, this include Malaysia.  Malaysia is a country with resourceful of renewable energy commodity, such as EFB fibre, saw dust, straw, rice husk and wood chip.  This has make Malaysia a source of pellet supplier.

Empty fruit bunch or EFB has only be used as Malaysia local biomass commodity but not favourable for exporting market.  This is because this EFB is high condensated product and not favourable for exporting and also heat generating is low.  The pelletize process be able to convert the EFB into EFB pellet.  Perhaps, the pelletize machine also can convert saw dust into valued pellet commodity.

Why Malaysia famous as Pellet Supplier

There are many pellet suppliers in the world, every company deal within their talent and capability for the region.  If you are looking for EFB pellet, or palm fibre biomass briquette Malaysia is one of the best pellet manufacturer and supplier for world wide market.

EFB pellet is making from the source of EFB.  Malaysia is the country with sufficient EFB volume in order to support the market demand.  Many EFB pellet manufacturer is setting up in Malaysia for supplying pellet to biomass industry.

The electric tariff and management quality awareness also another good reason Malaysia will becomes the good pellet manaufacturer.

DST, The Pellet Supplier from Malaysia

DST is one of the pellet supplier from Malaysia.  Currently we have EFB pellet and saw dust pellet or wood pellet supply to the market.  Due to the high demand of pellet commodity product, DST has ong relation with several famous oil palm mill around the country in order to secure the EFB.  We also having several contracts as acquire the source of saw dust.

DST is resourceful in supplying EFB pellet and saw dust pellet for domestic and overseas market.  Feel free to contact DST and understand more about our pellet product manufacture from Malaysia.

The Demand of Biomass Pellet in Malaysia

Due to the shortage and constraint for fossil fuel and coal, pellet has become an ideal energy alternative for biomass power plant.  Many countries already involved in manufacture and supplying pellet for market.

Pellet has been introduced to the market for several years, and recently Korea and Japan has enforced in green gas discharge.  Pellet is having the nature of fulfill green emitted gas or no fume discharge during burning processes.  Many pellets supplier from Malaysia has shipped to Japan and Korea market.

 

There are also others pellet supplier from Malaysia apart from DST,  you are welcome to check with any one of them to understand more about the pellet quality, EFB pellet price and delivery arrangement.

Well Know EFB Pellet Manufacturer in Malaysia

Empty fruit bunch or EFB is one of the common biomass commodity in Malaysia.

EFB Pellet manufacturer process setup
EFB Pellet manufacturer process setup

Turning EFB fibre into EFB pellet is getting many manufactures’ attention in Malaysia.  There are more and more EFB pellet manufacturers in Malaysia as we are seeing the demand of this EFB pellet is increasing.

Air pollution is one of the severe topic that affecting human living nature.  The latest claim from China is about the terms of Beijing Cough.  Basically this terms imply that China is facing severe challenge on airborne contamination.  Reducing the particulate discharge to the air is one of the direction for improving the air quality.

EFB pellet can be used to replace coal for heating purpose.  EFB pellet not only deliver high heat energy but also reduce the particulate discharge to the air.  Please read EFB pellet general introduction.

Why Malaysia is Popular in EFB Pellet Manufacture

EFB fibre is the raw material for EFB pellet.  Oil palm industry is the main argriculture crops in Malaysia, many plantation has been converted to oil palm estate.  EFB is one of the discarded product from crude palm oil mail, EFB contribute 20% out from a fresh FFB.

For an ordinary crude palm oil mill, every hour there will be 15MT of EFB being discarded after crushing for palm oil.  The EFB will go through EFB palletizing process for manufacturing become EFB pellet.  Because of the large volume of EFB, this has make Malaysia becomes an EFB pellet manufacturer.

Other Factor Becoming EFB Pellet Manufacturer in Malaysia

Apart from EFB fibre, the electric tariff also another factor that make Malaysia suitable for EFB pellet manufacture.

The EFB pellet machine basically is using mechanical force to compress efb fibre become pellet, this process requires electric to make the motor turn.  Hence, electric tariff contribute a major portion of EFB pellet cost, since Malaysia maintain a low electric tariff, this make Malaysia having the advantages for setting up pelletize process.

Contact DST, the EFB Pellet Manufacturer in Malaysia

There is an increasing efb pellet manufacturer in Malaysia, and DST is one of the pioneer on efb pellet manufacturer in Malaysia.  We supply the EFB pellet and saw dust pellet to world wide market.

There are several reasons that makes DST is one of the key EFB pellet manufacturer in Malaysia,

  • Steady supply of EFB fibre.
  • Own logistic team for transporting the EFB pellet effectively and efficiently.
  • High performance pelleting machine setup.
  • Skill and knowledgable employee.

 

As a EFB pellet manufacturer and supplier in Malaysia, we are looking forward Malaysia will becomes one of the key exporters of EFB pellet for biomass power plant.  Please kindly write to DST for understand more about our pellet products.

Factors Affecting EFB Pellet Price

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
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.