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Datenbank der Projekte zur ländlichen Entwicklung

Rural entrepreneurship: utilization of forestry wastes


The project developed a biomass pellet production facility using indigenous forestry resources. Local jobs have been created in a region facing land abandonment and demographic challenges.



The Project has been developed on a holding with both forestry and agricultural production. The region faces land abandonment and a decreasing and ageing population due to the forestry sector losing its economic and social importance. Specifically, MELPELLETS, Energias Renováveis, Lda is a micro-enterprise founded in August 2008 by two young graduates, currently living and working outside the region, but expecting to return and settle down in their region of origin.


The overall aims of this project were to add value to local resources and create employment and qualified jobs in the region The specific objective was to produce biomass pellets

Main activities

The main activities undertaken in this project were: - Investment in the operational components of a factory unit - Electrical and civil works - The installation of a solar thermal system for water heating

Results & Benefits

The objectives achieved have been: - Increased revenue of the enterprise (through pellet production and sales) - The creation of 5 new jobs - Use of renewable energy sources Benefits also emerging are: A contribution to sustainable environmental development due to the creation of a resource for using residues (wastes) from other industries as well as forestry wastage Improvement in forestry management methods by means of waste recovery Installation of prevention methods of forest fires

Lessons learnt

The specific lessons learnt relating to this type of forestry industry investment can be summarised as follows: - Evaluate the actual potential of raw material available - If required, ensure at an early stage that is possible to obtain bank credit - Ensure the quality of and certificate the final product - Establish partnerships with companies related to forest/wood industry sector

Project location and other information

Melgaço, North of Portugal



RDP Territory


Total project cost (€)

275 438

EAFRD contribution (€)

132 210

National contribution (€)

33 052

Private contribution (€)

110 175

Project website

Contact name

Paulo Esteves


+351936133101, +351965743244

Languages for contact


At a glance



Final beneficiary type

Non-farm or non-forest entreprises

Budget range

€100 000 - €500 000

Start date:


End Date:


Theme / Measure:

• Rural Quality of Life & Economic Diversification
• Rural economic diversification
• 312. Support for business creation and development


Bioenergy, Biomass, Renewable energy, Innovation, Wood product

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