Biomass Pellet Mill Plans

When preparing to build a biomass pellet mill plans it is important to consider the government incentives in place. Rising fossil fuel prices, the need for energy security and greater international efforts to reduce carbon emissions have prompted a number of initiatives worldwide for the adaptation of renewable fuels, including biomass pellets. Leading the way in this regard has been the European Union, which has stated its intention to generate 20 percent of its energy from renewable by 2020. Awareness of the incentives in place across various countries is essential toward making an accurate assessment of the pellet mill market to achieve the greatest return on your pellet mill plans.

These incentives come in various forms:

• FEED-IN TARIFFS

renewable fuel types identified by the government, generally set above the market price for competing traditional fuels. As a result, a greater market for the product of your prospective operation will exist in the 45 countries that have adapted such a policy. Most include biomass pellets as being eligible for the tariff.

• UTILITY QUOTA OBLIGATIONS

This type of policy requires that a certain amount of power sold or capacity installed utilize renewable energy sources, such as pellets made by biomass pellet mill. The burden falls primarily on utility companies who in turn engage in cogeneration. Only nine countries have implemented such a policy.

• NET METERING

Net metering allows those in the power grid to sell individually generated electricity to utility companies. The value of the power sold is then deducted from their electricity bill, a policy that has been introduced in 13 countries.

• GOVERNMENT MANDATES

This legislation typically requires blending a percentage of biomass fuel with fossil fuels. This is applicable liquid fuels such as ethanol and biodiesel, less so for solid biomass.

• TRADABLE RENEWABLE ENERGY CERTIFICATE

These certificates are traded in 20 countries. It provides an indirect subsidy to those that utilize renewable energy. A third party that neither produces nor consumes the electricity generated buys the certificate. These funds in turn pay the company which generated the electricity.

• CAPITAL SUBSIDY, GRANT, OR REBATE

In this instance, the government makes a one-time payment to the producer of renewable energy.

• TAX INCENTIVES

These provide tax credits or reductions to various sales, energy, carbon, or value-added taxes. These benefits can all be applied to your biomass pellet mill plans, as well as to the buyers of the renewable energy product.

• PRODUCTION PAYMENT

A direct payment by the government for the renewable energy produced.

• PUBLIC FINANCING

This legislation provides government investment, loans or grants to supply capital for renewable energy projects. 45 countries in both developed and developing countries have enacted such financing-based policies.

• PUBLIC COMPETITIVE BIDDING

This type of policy introduces competition between utility companies for new renewable energy contracts, designed to reduce the cost of output for consumers.



Download The National Renewable Energy Policy Standards

Any problems when build your own biomass pellet mill plans? You are welcome to contact us for free consultation and we will be very glad to help you!

E-mail: info@pelletmillshop.com

Our office staff is available to answer your questions, Monday through Friday, from 8:00 to 4pm (CST)