pellet presentation

Wood PelletWood Pellet produced fromproduced frompulpwood in Uruguay?pulpwood in Uruguay?

UruguayUruguay

• Wood available forindustrial processes2010.

Total m3Eucalyptus 8.739.117Pines 801.535Total 9.540.652

Destiny of the woodDestiny of the woodHarvestedHarvested

• Energy 52%• Paper mills 31%• Sawmill 17%

Almost 4.8 millions of cubic meters ofwood are available to produce woodpellet.

Economic StudiesEconomic Studies• Minimum size plant: 25.000 tons/year.• Cost of wood pellet plant*: USD

2.500.000• Useful Life: 20 years

* Provided by CPM.* Installation and operational costs are

not included.

Economic StudiesEconomic Studies

This economic study is focus in the rawmaterial and transportation. These 2 itemsare the most sensitive variables in the woodpellet production.

• Cost per green ton. U$D 60• Cost of Delivered the green ton *1. U$D 6• Cost of delivered the wood pellet to Europe

per ton *2. U$D 50

*1 Fifty kilometers of distance from the plant.*2 Exportations to Europe in a 40¨full container.

Resume of Economic StudiesResume of Economic Studies

Profit per tone of wood pelletTon.

Selling Price: $190Green ton Cost in plant: $ 66Delivered cost to Europe: $ 50

$74

$74/ dry ton of wood pellets to cover all variablecosts (electricity, water, workers, taxes, etc.)and provide a profit margin.

ConclusionsConclusions

• We conclude that at the present, because ofthe expansion of paper mills, is impossibleproduce wood pellets from pulp wood,because the cost of the wood is raising.

• We consider that the best way to producewood pellet in Uruguay is using the wastewood, after the harvest operation. The maingoal is to assure the volume of waste wood.

• Considering that we need around of 200.000cubic meters of waste wood to produce25.000 tons of wood pellet per year.

gaznarez@breedmeat.comgaznarez@breedmeat.comwww.breedmeat.comwww.breedmeat.com