The price hikes and supply crunches that have clobbered fuel supplies and raised prices throughout the world are starting to affect the one fuel we can call our own: Wood pellets.
“There is quite a bit available right now but with the ongoing situation, there might be a rude awakening. … We’re preparing for the fact that we might not have all our brands available this winter,” said Lee Hughston, manager of Osborne Agway in Concord.
The supply situation is dicey enough that the national Pellet Fuels Institute is cautioning users who depend on them to stock up soon. Hughston said Osborne Agway is giving the same message: “We encourage our regulars to do it early.”
And even though there is no shortage yet, the possibility of one combined with pressure from high diesel prices and labor shortages is showing up in higher prices.
“We used to have quarterly issues on pricing. Now the mill is calling essentially the first of each month … with $10 or more a ton or $20 a ton,” Hughston said.
He pointed to local hardwood pellets, a staple of the New Hampshire market. “Right now it is $330 a ton, almost $50 higher than this time last year.” And more increases are likely.
More pressure comes from increased demand. The sharp spike in the cost of heating oil, used by about 40% of New Hampshire homes, propane and electricity has raised interest in adopting at least supplemental heat from a pellet stove.
“A lot of people are new, coming into it to get away from ‘Our electric bill has basically doubled in cost, oil has gone up.’ People are looking for alternatives,” said Kyle McGarr, assistant manager at Stove Barn on Loudon Road. “Last year, a lot of gas fireplaces were being sold; this year it has jumped from that to wood and pellet stoves.”
The existence of a 26% federal tax credit for sufficiently good wood or pellet heating systems is also an incentive. The New Hampshire Department of Energy’s Sustainable Energy Division also provides a rebate payment of 40% of the price of high-efficiency bulk-fed wood-pellet boilers and furnaces, capped at $10,000 for homes.
But there’s a problem for these newbies: Many stove manufacturers are back-ordered, often by months. If you try to buy one now, one store manager cautioned, you may not get an installation until well into winter.
Supply constraints
Most pellets in New England are made either out of low-grade wood left over from logging operations or from sawdust and other wood byproducts from mills and manufacturing. Cutting down mature forests to create biomass for heating and power production, an issue that is causing an uproar in Europe, is not usually done here.
Local sources of raw material for pellets are under pressure, however. High diesel prices led many loggers to cut back on operations this summer, reducing the supply of wood from forests, while the rise in interest rates is affecting home building, the source of a lot of wood residue for pellet mills. And that’s not all.
“The bigger issue, quite frankly, is labor,” said Brett Jordan, CEO of Lignetics. The Colorado firm has pellet mills throughout the country including the New England Wood Pellet mill in Jaffrey that the company bought in 2018.
“We can’t take plants to 24/7 because we don’t have enough headcount. We’re hiring everybody we can hire but it’s not enough,” he said.
A more unlikely problem is the one that has roiled fossil fuel markets: The Russian invasion of Ukraine. The war has reduced supplies from Russia and Belarus even as the Russian cutback on natural gas and oil has made biomass heat and power more desirable. The result is that European nations want to buy a lot more wood pellets from the U.S.
“We get phone calls every day from people looking to export pellets to Europe,” said Jordan. “I would be shocked if we didn’t see a lot of players in our industry dedicating at least part of their capacity to export.”
With its hardwood forests New England doesn’t typically export much in the way of pellets. Southern states, where huge pine estates are grown specifically to become fuel, is the nation’s leader. But New England states still could see a trickle-down effect in supplies if exports surge.
Cheaper heat
Pellets have revolutionized wood heat in the past decade because refueling can be controlled by a thermostat via augers feeding more pellets to the fire as needed. Wood pellet boilers have become a routine way to heat commercial buildings and wood pellet stoves are a common secondary source of heat in homes, much cleaner and easier than traditional wood stoves.
Even so, pellets or similar processed wood such as sawdust bricks are not a huge part of New Hampshire’s energy scene. The state says about 6% of homes use wood as a primary heat source, and much of that is traditional wood stoves. While messy and labor intensive, traditional wood stoves have a major advantage over pellet stoves: They don’t need electricity to operate so they can heat a house during power outages.
As for cost, current volatility in prices makes predictions difficult but pellets have been slightly cheaper on a per-unit basis than heating oil in recent years, according to an analysis by Eric Kingley of Innovative Natural Resource Solutions LLC. Using data from the federal Energy Information Agency and historical data on wood pellet prices from the New York State Energy Resource and Development Agency, he calculated that pellets have been as much as one-third cheaper than heating oil this year and as of August were about 15% cheaper.
In terms of heat produced as measured in British Thermal Units, a ton of wood pellets is equal to about 120 gallons of No. 2 heating oil or about 180 gallons of propane, according to federal estimates. At current prices the pellets are much cheaper than the oil – less than $400 vs. about $550 – but oil prices seem to have stabilized while pellets are still increasing so it’s hard to say how big the difference will be this winter.Web body
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I’ve been running two pellet stoves for only one season and have some comments based on hard-learned experience:
1. some home insurance companies don’t know the difference between safer pellet stoves and less safe wood stoves and required side clearances (that differ) and might attempt to cancel your home insurance based on incorrect knowledge.
2. inspection and cleaning for pellet stoves is different, requires different expertise, and is harder to schedule because there are fewer capable people who do this.
3. the cost of maintenance (cleaning and inspection) can easily make up the difference between more expensive heating oil and pellets, especially if you run more than 1 stove.
4. the pellets come in 3 grades, the cheaper grades result in more ash to clean out
5. pellet stoves require electricity to run fans, a power outage with a running stove can easily burn out sensors, requiring replacement sensor. Running with a bad sensor is not a good idea (but you’ll only do this once).
6. carrying 40lb bags, outside to inside, and down flights of stairs gets to be a drag real fast
We experienced the insurance debacle when we tried to get insurance elsewhere. I believe we stayed put due to the new insurance wanted a fireproof backing on the wall by our pellet stove.
Research the HVAC code (national and state or province) concerning pellet stoves…..then look at the UL information plate on the back of your stove. Provide both to your insurance company (current or new), and measurements of your clearances. Sometimes all they need is some education to see that they are wrongfully denying coverage or demanding a modification.
pellet stove maintenance and inspection is incredibly simple.Your owners manual should take you through it.I built a chute made of plywood lined with plastic sheeting,and can unload and restack a ton in about 30 minutes.GOOD EXCERSIZE!
For 8 years I have heated with wood pellets.. this year I’m going back to wood heat the price is crazy and up 50.00 more a ton with the cleaning and upkeep it’s not cheaper good by pellet stove. Back to LP and wood heat
We have a pellet stove that doesn’t require electricity to run. It’s based on convection. The US Stove company makes it.
There are non-electric pellet stoves.
And, as far as insurance is concerned, the key is for the installation to be done with a state HVAC permit and inspection. As long as the stove install meets Code, your insurance can’t deny coverage.
I’ve never encountered a pellet stove that feeds pellets without electricity…
There are a couple, but the problem is that require a chimney just like a wood stove.
Good exercise, still alot cheaper than oil, burning pellets is great, no chopping or stacking wood, done it been there,. Own a Revelli stove ,it’s excellent, it’s small an heats 5 rooms, an it looks great,. God Bless
It’s not that pellet stoves safer it’s that people these days not smart enough to know how to run a wood stove right.
Been burning pellets for 12 years have 2 stoves and burn between 6 to 7 tons a years. Yes it is a lot of work to carry bags and clean your stoves and chimney out, but so isn’t burning wood a lot of work. Have burned both wood and oil and will never go back. Oh and by the way I am 73 years old so if I can do it so can you!
Thank you to the 73 year old for setting us straight! -I’m a woman age 56, and I have had to unload a pallet of pellets from the bottom of our 1/4mile dirt driveway up into the garage attached to the house by myself a few months back and I always have to lug bags around. We were gifted with a pallet Jack and my husband made a few little wooden 4wheelers to load bags of pallets to push over towards the stove where I keep them in stacks of 10 for my disabled husband.
20 kg bags,,much easier to handle,,are they avaiabe
Much easier to handle than a 40- pound bag, lol? But it weighs four pounds *more*.
I pour 40lb bags into 5 gal buckets that are much easier to carry upstairs.
Wiseway pellet stove is gravity fed. No power needed.
20kg is roughly equal to 44 pounds…..the standard for bagged pellets is 40 pound bags, thus making 50 bags equal to one ton (2000 pounds).
Isn’t the credit now 30% for 2022?
This “residential clean energy credit” extends and enhances an existing tax break. Costs incurred from the beginning of 2022 to the end of 2032 would qualify for a 30% tax credit. The credit would fall to 26% in 2033 and 22% in 2034.
https://www.cnbc.com/2022/08/13/how-to-qualify-for-inflation-reduction-act-climate-tax-breaks-rebates.html
I hear a 4 story Victorian with three pellet stoves and 1 wood stove. The pellet stoves run on as little as 100 watts after start up. I do recommend cleaning your stove after every 2 or three bags of pellets. Do yourself a favor and invest in a fireplace vacuum cleaner. It makes the job simple and quick. Cleaning the 2 ft stove pipes is simple and any chimney cleaner should be able to do it.
The one thing we can call our own? Purchasing fuel?
A leaf blowers vacuum makes cleaning the entire system a one minute job. Been burning pellets for 10 years and love it. I heat my entire house on three tons or about $750 per year. I bought a used stove on ebay ten years ago and replaced it today with another $350 ebay stove. I don’t worry about moving the bags around, it keeps me fit and feeling great. If a person is the type to pay people to do things lije cleaning their stove and chimney they should definitely use oil or gas. Pellet stoves aren’t for those kinds of people.
Cleaning after 2 or 3 bags??? I can run a ton and a half through my pellet furnace without cleaning. The stove you have must be some serious junk
A good stove and good pellets means less cleaning.
Robert,
I operate two pellet stoves as well up here iin Vermont… Vermont… the NEK One being a Harmon 53i insert and the other is a non electric GW1949. This will be our 6th winter with this setup. The GW runs 24/7 except for cleanings and the Harmon kicks on only if the GW can not maintain depending on outside temperature. There is alot more to my story…but can’t text it all. My point is there is a non electric pellet stove that is a hybrid of wood stove operation and pellet stove operation. We love our GW.
Non-electric pellet stove? That’s a new one to me – thanks.
Yes google it,they are gravity fed and require 0 electricity,they are kinda bulky and pricey but it’s a life saver.
Otherwise known as the Wiseway stove.
https://www.usstove.com/stoves/pellet-stoves/wise-way-2000-sq-ft-non-electric-pellet-stove/
Yeah…..they are used quite a lot in my area as a secondary heat source for off grid homes, or when grid service is cut off.
They operate via gravity feed, and heat sensitive dielectric fans similar to the woodstove fans many folks use.
Are there any companies able to take on a new client interested in purchasing wood pellets in bulk?
Try High Mountain Processing in Walden, Colorado! Clint Georg is the person you need to contact there!
A YouTuber measured the amount of electricity where pellet stoves consume 25 cents an hour. That’s $2 for 8 hours. Cheap.
My Harman has been kicking ass Here in mid mich. 4 ,4years. Other than cleaning,maintenance, I love it. I do have a fireplace, but not practical, wasting energy.my dad had it 4 years before I got it ,when he moved to Florida ,I was sold when I saw it at his house the first time I saw it!!!,and when I got it Wow!
Someone is guessing = I ran mine last year every night for 10-12 hrs for 5 months and my electric bill hardly changed,and I watch my bills very closely.
Our local electric utility ran the numbers and it’s far less than what you suggest from the YouTube dude.
My biggest gripe is with the pellet manufacturers themselves. They’re the newcomers to the hearth products industry and they are strictly focused on their own success and profitability. Absolutely horrible across the board. They are completely indifferent about the success of their dealer network. In the hearth industry for 33 years, saw the invention of the first pellet stove and rode the wave. Their days are numbered.
$2-3 for electricity per day, plus $2-8 in pellet fuel per day (unit and settings dependent). $300/mo or less for heat in cold climates isn’t too bad. I have a woodstove in the main house, and a pellet stove in the attached guest house……total heated square footage is 3132…..and because of the insulation and draft reduction work I’ve done, the house stays a nice even 72° all winter with minimal heat.
And I am running pellet burner, attached to my Bosch wood boiler, burning sunflower husk pellets. This is in Bulgaria, Europe. The prices here went up 3 times, comparing to last year…
Hello people i had to comment and respond with Edge Enterprise in Greensburg Pa area i have been servicing pellet stoves for 20 years and most people im dealing with are having difficulty finding someone to service there stoves and i noticed that the price of pellets havent gone up very much so far locally $300/ton compared to last year $260/ton
pellets have pretty much lost their price advantage. I have heated with a quadrature stove for 15 years. and have gone back to my gas furnace. originally we paid $120 a ton and burned approx 1 ton a month. now prices are close to $300 a ton and my furnace is much cheaper to run
Do your own maintenance. I take my stove apart every month and give it a thorough cleaning. Don’t know why you’d hire someone to do that.
Get a hand truck, put the bags on it and roll them into your living area.
In Serbia at the beginning of last year, a pallet cost about $220, the dollar exchange rate was then about 96 rsd for $1, now a pallet costs $320 and transportation is $40, that is $360 dollars per pallet or 1050Kg and the dollar exchange rate is 119 rsd for $1. Pellet sellers can’t charge their price because the government limits them to a certain price that is still too high, so they come up with hidden shipping costs to get their way. The salaries are the same, and the average salary is raised by the salaries of MPs! Everything has become more expensive on average by 30%.
Here in Denmark a ton of wood pellets are up in around $780 – almost $500 more than same time last year.
Electric bills have tripled since the start of the year. Heating bills have quadrupled some places. Food prices are exploded.
Not to be a little annoyance, but a $50 increase so far is nothing to cry about.
How many kWh of electricity usage does one average per hour?
I have pellet stove , wood stove, propane direct vent heaters , and electric baseboards. Run whatever is cheaper at the time l. Lol
I used to use a Harmon pellet, before it the original pellet stove that was invented long ago. The Harmon has a device which drove me crazy so I went back to wood. Seems there is a cooling unit in it to prevent the heat from fully reaching the room. How dumb is that? My wood stove easily puts out twice the heat. So far I am good, I live on a mountain with thousands of hardwoods.
it’s quite good time to invest in the pellet making plant, we get many inquiry from customers from Europe Spain, France, Germany ,and we guess the market will be bigger and bigger .You can contact us for pellet making, we are pellet making machine factory in China .www.tcpel.com
60 years old. We switched to 20 pound bags. Our house is always 70-74. Friends who heat with oil are spending more and setting thermostats at 65°