Briquette fuel is a kind of clean energy which is processed from biomass raw materials by briquette machine. In recent years, with the promotion of environmental protection policy and the growth of market demand, it has gradually become the focus of investors’ attention. There are some differences in the investment recovery cycle for briquette fuel production projects of different scales. The investment return period and economic benefits of small, medium and large-scale projects are analyzed below.

1. Small projects (annual output of 1000-3000 tons)

Small projects are suitable for investors who are new to the industry or have limited funds. Taking the annual output of 3,000 tons as an example, the investment in the complete set of briquette machine is about 120,000 yuan, and the annual net profit can reach 250,000-350,000 yuan after the project is started. This means that investors can recover their costs in the same year or more than a year, and the investment return period is short and the risk is low, which is very suitable for enterprises or individuals in the water testing stage.

2. Medium-sized projects (annual output of 4000-10000 tons)

Medium-sized projects are suitable for enterprises with certain resources and experience. Taking an annual output of 4,000 tons as an example, the total investment is about 1 million yuan, and the annual net profit can reach 470,000-560,000 yuan. According to this profit level, investors can recover their costs within 2-3 years, and the investment return period of the whole project is 3-5 years. Medium-sized projects have achieved a good balance between scale and income, which is suitable for investors who want to further expand production scale.

Large-scale projects (with an annual output of over 10,000 tons)

Large-scale projects are suitable for enterprises with strong financial strength and long-term stable income. The total investment of this kind of project is about 12 million yuan, including the two-year construction period. The annual net profit can reach 43.98 million yuan, and the internal rate of return (IRR) is 12.5%, which is 10% higher than the industry benchmark rate of return. Despite its long payback period (about 6.8 years), its long-term income is very attractive because of its remarkable scale effect.

Generally speaking, the investment recovery period of briquette fuel production project is closely related to the production scale and investment structure. Small projects have fast returns and low risks, while medium-sized projects have both stability and profitability, while large-scale projects are more suitable for enterprises pursuing long-term development and high profits. When choosing the investment scale, it is suggested to consider comprehensively according to one’s own financial strength, market demand and operational capacity, so as to achieve the best economic benefits.

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