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

How to Set Up a 1 TPH Biomass Pellet Plant in India

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

Section 2: Land, Utilities & Manpower Requirements

2.1 Land Requirements

For a 1 TPH pellet plant, plan for:

Area TypeSize (Approx.)
Built-up plant area8,000–10,000 sq. ft.
Raw material yard10,000 sq. ft.
Storage & packing5,000 sq. ft.
Total Land0.75–1 Acre

2.2 Utilities Required

UtilitySpecs
Power80–100 HP connected load (~75 kW)
Water500–1,000 L/day (cooling + dust)
Manpower8–12 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 MaterialMoisture (Raw)GCV (kcal/kg)AvailabilityPellet Suitability
Sawdust10–15%3500–4000HighExcellent
Groundnut Shell6–10%4200–4500MediumExcellent
Paddy Husk10–15%3000–3200HighModerate (abrasive ash)
Cotton Stalk12–20%3500–3800SeasonalGood
Sugarcane Bagasse30–50%2300–2700Very HighNeeds Drying
Corn Cob10–15%3700–3900MediumVery Good
Bamboo Waste15–25%3800–4200Region SpecificVery Good

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

Section 4: Detailed Cost Breakdown for 1 TPH Plant

ComponentEstimated 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.

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

⭐ Recommended for 1 TPH Projects:

CompanyLocationHighlightsWebsite
FABON EngineeringNashik MaharashtraTurnkey biomass pellet plants, flash dryer, pellet burnerfabon.in
Servoday GroupGujaratComplete biomass and feed pellet solutionsservoday.com
Ecostan IndiaPunjabPellet machines, shredders, briquetting unitsecostan.com
Pellet IndiaPunjabSpecializes in agro pellet machinespelletindia.com
Keyul EnterpriseMaharashtraMini pellet mill setups and agricultural shredder machineskeyulenterprise.com
Namdhari AgroPunjabFeed and pellet processing machinerynamdhariagro.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)

ItemValue (Approx.)
Production8 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 Period12–18 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

TopicKey Info
Land Needed0.75–1 Acre
Investment₹1.1–₹1.5 crore
Output1 ton/hour
SubsidyUp to ₹40 lakh (MNRE) + state-level benefits
Best ManufacturersFABON, Servoday, Ecostan, Pellet India
Raw Material Needed/Day24–30 tons (wet basis)
Profit Potential₹30,000–₹40,000/day
ROI~1–1.5 years

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

35 thoughts on “How to Set Up a 1 TPH Biomass Pellet Plant in India (2025) – Complete Guide”

  1. Dear Sir

    We want setup Biomass pillet Manufacturing plant at Jhalawar Rajasthan for 5TPH CAPACITY PLANT .
    MOB 9670574143

    Reply

  3. Set up of 2 to 3 TPH pellet plant using soyabin husk in Amravati , Maharshtra.pl submit the detailed quote with compact line. It is better if you can help us to make a DPR.

    Reply

  4. Dear Team,

    I am exploring for Biomass Pallets and Bricket plat for 1TPH or 2 TPH
    i am looking for Better and detailed information

    Reply

  8. Good morning sir ,
    We want to set up this factory. Therefore, we want the ITPH machine to be completely sent to DPR.

    Reply

  12. I am working on a plan for a new plant, which would also perform pyrolysis and torrefaction. We would also be customizing the process.
    I need to connect with someone who can help with the overall end to end process.

    Reply

  14. We have a wooden packaging unit in Prayagraj, UP with Band saws.
    Was keen to set up a bio mass pellet unit here.
    Require your inputs for –
    1) Cost for 1mt/hr unit. Land is available.
    2) different type of raw materials available in my region
    3) End users.
    4) Ease of selling final product

    Reply

  16. Please provide me all the details regarding this
    DPR (Detailed Project Report)
    List of machinery with quotation
    Manufacturer contact and plant layout
    Marketing channels for biomass pellets
    Subsidy application documentation

    Reply

  17. Interested in the project
    Kindly send DPR for reference.
    If possible pls refer a person who can take care of liaisoning in govt dept. and other formalities.

    Reply

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