Executive Summary: Techno-economic analysis for mobile pelletising plant

Summary of Project and Key Findings (for public disclosure):
This report evaluates the feasibility of a mobile wood pelletising plant in New Zealand’s Nelson-Tasman-Marlborough region, focusing on two primary sources of biomass—harvest residues and processing residues—and comparing fixed versus mobile plant configurations. Processing residues are more cost-effective due to their centralised location and lower moisture content, making them an ideal initial feedstock. In the techno-economic analysis of a 10,000-tonne-per-year operation, a fixed plant offered significantly higher profitability, with an annual net income of $137,200 and a 34.3% ROCE, primarily due to its reliance on cheaper grid electricity; meanwhile, the mobile plant’s dependence on diesel generators limited its annual net income to $12,268 and a 2.3% ROCE. Capital costs for both configurations totalled $435,084, highlighting the importance of careful investment strategies, particularly around equipment choices and location. Overall, the findings indicate that a fixed pelletising facility located near centralised processing residues—such as in the Richmond-Brightwater area—is the most promising path, with future considerations including a gradual incorporation of harvest residues and potential exploration of semi-mobile options.

Catalogue of IP Generated by the Project (kept confidential to the BPA):
Pure ID: 96113464
Techno-Economic analysis for a mobile pelletising plant. MS1. Feedstock Availability.
Research output: Report/Book/Newsletter › Private sector contract report
Pure ID: 96407501
Techno-Economic analysis for a mobile pelletising plant. MS2. TEA.
Research output: Report/Book/Newsletter › Private sector contract report

Statement from the industry partner describing the business impact of the project (kept confidential to the BPA):
The industry partner said that having more clarity on what kind of resource to process was great. They also agreed that a fixed operation next to a wood processing facility is more viable than a mobile pelletising plant. However, they were keen on exploring ways of achieving a semi-mobile operation. Nevertheless, last message from Immersive Engineering came with bad news, not only for the project, but also for the industry: “Unfortunately, a bit of bad news, the company has been placed into liquidation and can no longer continue with this project. This potentially maybe valuable to another engineering firm in nelson” (Tom Melrose e-mail received on 05/feb/2025.

TRL at start of project = 1
TRL at end of project = 2