| OVERVIEW - FOR GENERATING A INVESTMENT AND COST COMPARISON FOR FIREWOOD KILN SETUPS |
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| First it is important to determine kiln utilization. After studying our customer setup we have seen that no one has enough capacity to store large volumes of kiln dried firewood. The main reason for not storing firewood is: - Dry storage is expensive (for a relative cheap product such as firewood). - Risk of mold (this can totally kill any profit you might have made). - Over drying firewood for long term storage to avoid any mold. Therefore we have based our calculations based on operating the kilns at these production levels: 100% for 4 month 67% for 4 month 33% for 4 month Large kiln systems with central boiler is not as easily reduced in capacity. |
| FIREWOOD KILN PRICING | ||||
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| MiniQuick with wood waste heating: Long conveyor, heat recovery on chimney/vents, and USDA compliance upgrade. Freight is not included. |
6 cord capacity |
US$ | 54950.00 | Approx price in January 2012 |
| MiniQuick with gas heating (LP or Natural gas): Direct gas heating, heat recovery on vents, and USDA compliance upgrade. Freight is not included. |
6 cord capacity |
US$ | 31200.00 | Approx price in January 2012 |
| Container based firewood kiln. Used container is about $6000 + Mountain firewood kiln kit from ebay $19500 Freight is not included. |
6 cord capacity |
US$ | 25500.00 | Estimated from websites 2012 |
| Large firewood kiln for hot water. Hot water heating system not pressurized includes controls for USDA compliance. Assembled on your location included. Freight is not included. |
20 cord capacity |
US$ | 80000.00 | Low estimate. Kiln-direct would be more than $80000 You might be able to build your one for this. |
| Mid size low pressure firewood kiln. Low pressure steam or pressurized hot water heating. Includes controls for USDA compliance. Assembled on your location included. Freight is not included. |
12 cord capacity |
US$ | 71000.00 | Low estimate. Kiln-direct has quoted a similar size kiln for a little higher than this. You might be able to build your one for this. |
| Large low pressure firewood kiln. Low pressure steam or pressurized hot water heating. Includes controls for USDA compliance. Assembled on your location included. Freight is not included. |
20 cord capacity |
US$ | 115000.00 | Low estimate. Kiln-direct would be more than $115000 You might be able to build your one for this. |
| EXTERNAL HEATING SOURCES | ||||
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| The MiniQuick kilns from Kiln-direct already has an integrated heating system and will not need an external heat source, such as a boiler or hot water stove. This lowers the installation time and cost. IMPORTANT: If you have a central external heat system, then a break down can stop your productions completely until repaired. |
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| Large hot water stove with a heat output of about 600000 btu/hr. Type and availability will depend on state regulation. MANUAL LOADING EVERY 6-8 HOURS. |
US$ | 15000.00 | Central Boiler 7260 or Taylor stove T-2000 phase 2 compliance would cost more. |
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| Automated chip/sawdust boiler with 1.5 million btu/hr including large storage bin for low pressure steam or hot water. |
US$ | 130000.00 | This is an estimated based on quotes we have seen for similar sized boiler systems. |
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| Automated chip/sawdust boiler with 3 million btu/hr including large storage bin for low pressure steam or hot water. |
US$ | 220000.00 | This is an estimated based on quotes we have seen for similar sized boiler systems. |
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| Automated chip/sawdust boiler with 6 million btu/hr including large storage bin for low pressure steam or hot water. |
US$ | 420000.00 | This is an estimated based on quotes we have seen for similar sized boiler systems. |
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| FIREWOOD BASKET INVESTMENT | ||||
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| We have used our standard 1/2 cord basket for this calculation, which costs $675.00 each. You can build your own baskets for less in material costs. But we have seen customers try to beat the price and ended up getting our baskets. Most often local metal fabricators will charge more for a similar basket thatn $675.00 We can ship 24 completed baskets on a truck with a step deck trailer. We can ship 24 completed baskets and 24 break down basket components with a step deck trailer. This will save on the transport costs, but often it is not enough to cover the assembling costs locally. |
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| INSTALLATION COSTS. | ||||
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| The installation cost can be very difficult to estimated as it depends on: - How far you have to run electrical, - Cost of pouring foundation for kiln, - Cost of water supply (if needed), - Mechanical installation cost (piping, etc) We have estimated installation costs as follows: MiniQuick kilns: $10000 per kiln. Container kilns: $5000 per kiln + $1000 for hot water piping. Standard kiln (20 cord): $15000 per kiln + $10000 for piping and valves. Steam kiln (12 cord): $15000 per kiln + $6000 for piping and valves. Steam kiln (20 cord): $15000 per kiln + $17000 for piping and valves. Some of these cost could be lower, but like any construction project it often goes higher. We just saw 7 pressurized hot water kilns cost $20000 each for the foundation and piping/valves will be more than $15000 each. |
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| FREIGHT COSTS FOR DELIVERING KILNS, BASEKTS, HEATING SYSTEMS TO CUSTOMER. | ||||
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| Freight is a major expense and we have based it on this: - 700 miles of shipping, - shipping of kilns and heating system, - baskets fully assembled. |
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| FINANCING THE INVESTMENT. | ||||
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| In order to factor the cost of the investment into the cost per bundle we have based the loan on: - 5 year payment. - 6% APR interest, This is only an estimated and availability of financing will depend on your years in business, collateral, etc. Kiln-direct does not provide direct financing. |
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