Production of Pini Kay Fuel Briquettes

Individual Entrepreneur “Sharabyriak Myroslav Yuriyovych”

I have been an entrepreneur since June 2023. The main activities of my business are construction and carpentry. In my region, there are many companies involved in wood processing, which produce large amounts of waste as a result of their activities. That is why I came up with the idea of creating a company for recycling wood processing waste, specifically a workshop with a Pini Kay briquetting line with a capacity of 350 kg/hour.

Business Process:

The business will be organized as follows: raw materials will be delivered to a special canopy where they will be stored. Then, through the VRP (Vertical Roller Press), the sawdust will be transferred to a seed drill, and from there to a hopper with screw feeding. The raw material will then be sent to the drying complex, and after drying, it will be pressed. After the briquettes are formed, they will go through a trimming machine where we will cut them to the required size. The briquettes will then be packed in thermoplastic film and placed on pallets, with each pallet weighing one ton. After the pallets are formed, they will be transported to the warehouse where they will be stored and wait for shipment.

What are fuel briquettes?

Fuel briquettes are compressed pieces of wood, peat, or recycled agricultural production waste. They are held together by lignin, a natural adhesive substance that is released during the pressing of wood, sunflower husks, and other environmentally friendly materials. Fuel briquettes are used as solid fuel for stoves, fireplaces, and solid fuel boilers. Due to their environmental cleanliness and almost smoke-free burning, they are ideal for heating homes, baths, greenhouses, tents, and other facilities. Because they are pressed, briquettes are denser than firewood. Their minimum density significantly exceeds that of even the hardest types of wood. This affects the heat output: briquettes can reach up to 6000 kcal/kg, while firewood ranges from 4000 to 4700 kcal/kg. Other advantages of briquettes include that they take up much less space than firewood. Additionally, when using briquettes, there is no waste or tree bark residue around the stove or in storage areas. The prices of Pini Kay fuel briquettes in Ukraine as of 2024 range from 8500 to 10100 UAH per ton.

How will the investor’s funds be used?

The funds will be used to purchase the following equipment:

• Pini Kay briquetting line, automatic, 350 kg/hour – 1,000,000 UAH

• Thermotunnel for briquette packaging – 150,000 UAH

• Hammer mill 500 kg/hour – 300,000 UAH

• Wood chipper up to 170 mm – 300,000 UAH

• SCOUT TB-904C tractor with attachments – 1,600,000 UAH

• VRP – 150,000 UAH

• Hydraulic loader – 50,000 UAH

• Workshop repair and equipment setup – 450,000 UAH

How will interest be paid to investors?

Gross monthly income: 1,260,000 UAH

Monthly direct expenses: 788,000 UAH

Monthly net profit: 472,000 UAH

Annual net profit: 5,664,000 UAH

The profit will be shared with investors on a 50/50 basis – 2,832,000 UAH, which is 70% of the invested amount.

How will the principal investment be returned?

After two years of cooperation, the investment can be withdrawn at any time upon the investor’s request.

What kind of contract will govern the relationship with the investor?

The contract will be designed in such a way that all parties, especially the investor, are satisfied.

A few words about the project:

By receiving investment, I will create an environmentally friendly company for recycling wood processing waste, specifically the production of Pini Kay fuel briquettes. This will create at least 13 jobs, and because it involves recycling waste, it will improve the surrounding environment. The product itself will solve heating problems, and it is highly demanded in the market.