WOOD PELLET EQUIPMENT IN CANADA

The wood pellet equipment manufactured by RICHI in Canada compresses wood waste—such as sawdust, wood chips, shavings, and bark—into pellet fuel. While Canada may not have an abundance of other resources, it has plenty of timber, and its forest products processing industry is well-developed, WOOOD resulting in a massive amount of waste generated each year. In the past, this waste was either burned or landfilled, but now, with pellet machines, it can be transformed into valuable fuel and sold to Europe and Japan.

We don’t just sell individual machines; we also design complete production lines. We first assess the specific raw materials our clients have, their daily production capacity in metric tons, and the size of their facilities before tailoring a solution—we don’t use a one-size-fits-all approach with generic blueprints.

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PROJECTS COMPLETED IN CANADA

Ontario—1 ton per hour sawdust-to-pellet plant

This client runs a small lumber mill that generates a significant amount of sawdust daily. Previously, they paid to have it hauled away, which added up to a considerable annual expense. They wanted to convert the sawdust into pellet fuel to sell to the local heating market.

· Pellet Size: 6–8 mm

· Main Equipment: Drum dryer, 132 kW pellet mill, cooler, baler

· Process Flow: Shredding → Drying → Pelletizing → Cooling → Screening → Baling

The customer had previously purchased a small, inexpensive machine, but its production capacity was insufficient, and the pellets crumbled when squeezed. The system RICHI provided for them handles the entire process from drying to baling in one go. Installation and commissioning were completed within a month, and on-site training was arranged to teach them how to operate the equipment themselves.

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British Columbia, 2 tons/hour Bark + Wood Chip Pellet Production

There are many sawmills in British Columbia, and the customer operates one of them, producing large quantities of wood chips and bark daily. He wanted to turn these materials into pellets for sale, but the bark’s high moisture content and coarse fibers were too much for his old equipment to handle—it would either clog up or wear out.

· Pellet Size: 6 mm

· Main Equipment: Crusher, drum dryer, 160 kW pellet mill, cooler, screen

· Process Flow: Crushing → Drying → Pelletizing → Cooling → Screening → Baling

RICHI equipped the line with a reinforced drying system to first reduce the moisture content of the bark before pelletizing. The pellet mill is fitted with heavy-duty ring dies and wear-resistant press rollers, capable of withstanding the abrasive nature of bark. After production began, output proceeded smoothly, and the customer successfully sold the pellets to Europe.

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Alberta, 3 tons/hour Sawdust + Wood Chips Pelletizing

This client operates a medium-to-large-scale lumber mill with an abundant supply of raw materials, targeting export markets in Europe and Japan. However, the raw materials often contain sand and small stones, which, when fed into the pellet mill, cause the ring die and press rollers to wear down extremely quickly.

· Pellet Size: 4–8 mm

· Main Equipment: Pre-cleaning system, drum dryer, 200 kW pellet mill, cooler, baler

· Process Flow: Pre-cleaning → Drying → Pelletizing → Cooling → Baling

RICHI’s solution includes an additional pre-cleaning step to screen out sand and gravel in advance, preventing them from entering the pelletizer. The 200kW pelletizer is equipped with reinforced ring dies and wear-resistant press rollers, ensuring it can withstand even occasional small amounts of impurities. Automatic baling saves on labor, allowing the entire line to be managed by just a few people. The customer’s product successfully obtained European ENplus certification.

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British Columbia, 5 tons/hour Large-Scale Export Line

This client is located in a forested area of British Columbia, surrounded by numerous sawmills, so there is never a shortage of raw materials. The client set its sights directly on the high-end markets in Japan and Europe and wanted to build a high-capacity production line. However, the moisture content of the raw materials is unstable—sometimes dry, sometimes wet—which poses a significant challenge.

· Pellet Size: 6–10 mm

· Main Equipment: Large crusher, 2 × 160 kW dryers, 2 × 250 kW pellet mills, cooler, fully automatic baler

· Process Flow: Crushing → Drying → Pelletizing → Cooling → Screening → Baling

RICHI’s solution features two dryers operating in parallel, ensuring reliable processing regardless of fluctuations in the moisture content of the incoming material. The two 250kW pelletizers also operate in parallel; if one is shut down for maintenance, the other can continue production without affecting shipments. The entire line is fully automated and can be operated by just a few people. Since production began, pellet quality has remained consistent and has been well-received by customers in Japan and Europe.

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DIFFERENCES IN CANADA PELLET PRODUCTION

Canada is a major global producer and exporter of wood chip pellets. With over 40 pellet mills nationwide, the country produces approximately 4.8 million metric tons annually. However, the vast majority of this output does not remain in Canada for domestic use—90% is exported, while only 10% is consumed domestically.

Where do they go? Primarily to Europe and Japan. Over the past decade, Canada’s wood pellet exports to Japan have surged from 11 million Canadian dollars to 207 million Canadian dollars—an 18-fold increase—with shipments primarily originating from British Columbia and Alberta. The same holds true for Europe: in the first half of 2025, Canadian wood pellets accounted for 11% of the EU’s total imports, totaling 236,000 metric tons.

Canada has a natural advantage in pellet production: an abundance of waste materials. Eighty-five percent of the raw materials used by pellet mills come from byproducts of sawmills and other wood processing plants—namely, sawdust, shavings, and bark. The remaining 15 percent consists of low-quality logs left over from logging operations and shredded shrubbery. Simply put, pellet mills take what others discard and turn it into a valuable resource.

The government is also promoting this sector. The 2025 budget included investment tax credits for biomass projects; Ontario allocates 20 million Canadian dollars annually to support wood utilization projects, while British Columbia has set aside 37 million Canadian dollars to develop new uses for low-value fiber. With policies driving this direction, the market is also growing.

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WHAT MAKES THIS EQUIPMENT SO GOOD?

It Can Handle Any Type of Feedstock

The extruded pellets are sufficiently hard

Easy to Operate and Maintain

Production Capacities Ranging from Small to Large

It Can Handle Any Type of Feedstock

The raw materials used for pellet production in Canada are incredibly diverse—sawdust, shavings, bark, wood chips, you name it—and they vary significantly in moisture content and particle size. RICHI’s equipment adapts quite well to this mixed bag of materials, capable of compressing everything from sawdust to bark. A conditioning unit at the front of the machine uses steam to soften the material before compression, which improves the forming rate and reduces powder output.

Bark is particularly hard on machinery, but RICHI’s key components (ring die and press rollers) are made of wear-resistant alloy steel, so they don’t wear out easily.

The extruded pellets are sufficiently hard

The resulting pellets have high density and low moisture content, burning efficiently and meeting the standards required by European and Japanese markets. Exporting to Europe requires ENplus certification, while Japanese customers have strict requirements for calorific value, ash content, and supply chain traceability. Pellets produced by RICHI equipment meet all these specifications.

Easy to Operate and Maintain

The equipment is highly automated; once the feedstock is loaded, conditioning, extrusion, and pelletizing are completed seamlessly without the need for constant supervision. Labor costs in Canada are high, so equipment that is easy to operate and maintain is crucial. The machines are modular, so if a component fails, only that specific part needs to be replaced—there’s no need for a major overhaul.

Production Capacities Ranging from Small to Large

There are suitable models for everything from small workshops to large factories. Single-unit production capacity ranges from 0.2 metric tons per hour to 4 metric tons per hour, with power ratings from 22 kW to 250 kW. If you want to scale up further, simply connect multiple machines in parallel.

WHICH EQUIPMENT TO CHOOSE DEPENDS ON YOUR SPECIFIC SITUATION

Find Your Solution

Starting a small workshop

If you have sawdust waste that you want to utilize, start by purchasing a small-capacity pelletizer with a capacity of 0.2–0.5 metric tons per hour. This turns waste into revenue with minimal investment.

Medium-sized lumber mills

If you have a large volume of waste and want to run a professional pellet business, set up a line with a capacity of 1–3 metric tons per hour, equipped with drying and cooling systems. This ensures consistent pellet quality and allows you to command a premium price.

Large-scale commercial pellet mills

If you’re aiming for export, go straight for a line with a capacity of 5 metric tons per hour or more, with multiple units operating in parallel and fully automated control, ensuring high output and consistent quality.

For those missing only the pelletizing stage

If you already have crushing and drying equipment but are missing just a pelletizer, you can simply purchase one unit, connect it, and start using it right away.

CANADA WOOD PELLET MARKET OVERVIEW

Exports Are Growing

Canadian pellets are primarily sold to Europe and Japan. In the first half of 2025, Canada accounted for 11% of EU imports, while exports to Japan have increased 18-fold over the past decade. Exports to South Korea are also rising, with supply to that country growing by 32% in 2025. Global wood chip pellet trade is projected to exceed 25 million metric tons in 2025, and Canada’s share of this market is substantial.

Changes in Raw Material Supply

Eighty-five percent of Canada’s pellet feedstock comes from sawmill byproducts, but in recent years, some sawmills in British Columbia have shut down, tightening the supply of sawdust. Some pellet mills have been forced to close due to a lack of raw materials. This underscores an important lesson: one cannot rely solely on a single source of raw materials; alternative options are essential. RICHI’s equipment can process a variety of raw materials. When sawdust is in short supply, bark, wood chips, and even logging residues left in the forest can be used, providing strong resilience against risks.

Policy Support

The federal government has allocated 1.25 billion Canadian dollars to the forestry sector for 2025, and biomass projects are eligible for investment tax credits. Ontario invests 20 million annually to support wood utilization, while Nova Scotia requires public buildings to prioritize the use of wood-based biomass materials. For pellet mills, the policy environment is favorable.

WHAT RICHI CAN OFFER

RICHI has been manufacturing biomass equipment for over 30 years, with experience in both individual units and complete production lines. In Canada, we have successfully implemented projects ranging from small workshops to large-scale plants.

Customized Solutions

Every client’s raw materials, site conditions, and budget are unique. For limited space, we design compact layouts; for tight budgets, we implement projects in phases; and where existing equipment is available, we make every effort to incorporate it.

No Half-hearted fter-sales service

We dispatch personnel to install and commission the equipment upon delivery, and provide on-site training if operators are unfamiliar with the process. If a machine malfunctions and cannot be resolved remotely, we send technicians to the site.

Quality is guaranteed

Key components are made of alloy steel for superior wear resistance. Our equipment holds BV, ISO 9001, CE, and SGS certifications.

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FREQUENTLY ASKED QUESTION

Temperatures in Canada can drop to several dozen degrees below zero in winter. Can the machines withstand these conditions?

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Yes. The design accounts for cold climates, with insulation measures in place for critical components, ensuring the machine operates normally even at sub-zero temperatures. The drying system can effectively remove moisture even under low-temperature conditions.

I want to produce pellets for export to Europe. Can the equipment meet ENplus standards?

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Yes, it can. Pellet quality depends on raw material processing and the pelletizing process. RICHI’s equipment is equipped with conditioning, drying, and cooling systems, allowing moisture content, ash content, and hardness to be controlled within the ENplus requirements. Several customers in Canada have already successfully exported pellets to Europe using our equipment.

Is it possible to purchase just a pellet mill without buying the entire production line?

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Yes. Many customers already have their own crushers and dryers and only need a pelletizer. You can simply purchase one, connect it, and start using it; we’ll handle the installation and commissioning.

Can bark be used to make pellets? Will it wear out the machine too quickly?

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Yes, it can. Bark is abrasive, but RICHI’s pelletizer ring dies and press rollers are made of wear-resistant alloy steel and have been reinforced specifically for this type of material. The project in British Columbia mentioned earlier processes bark, and the equipment is still in good condition today.

Can the ring die be replaced? What pellet sizes can it produce?

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Yes, the ring die can be replaced, and the pellet diameter can be adjusted freely between 4–12 mm. The European market typically uses 6–8 mm, and the Japanese market is roughly within this range as well; we can adjust it according to customer requirements.