More raw material for pellets being exported!

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Says there exporting chips, I though the mills only wanted saw dust for pellets. I only know of one mill that hammers the chips to dust. That would be the Michigan pellets.

jay
 
One of the new pellet mills down here in Georgia told me that they are sending ALL of their production to Europe. Can't remember which one it was. We have pine trees everywhere and can't get pellets from this guy because he can make more money shipping them to Europe? Go figure.
 
Most of the EU has made oil not an option for heating, they intentionally tax oil so it will be more expensive than pellets. Otherwise they just plain ban it from use for heating. Therefore unlike the US where oil is an option, pellets will always be in demand for heating in Europe. Shipping raw chips is usually a loser as they take up a lot of volume and weight in water. Shipping pellets makes a lot more sense. The pellet mill in Berlin NH that is being built this summer is planning to ship the majority of their pellets to Europe.

Of course with the impending "carbon tax" on oil, prices in the US will be driven up substantially, so the offset between pellets and oil will probably swing so that pellets are better in the long run. California has just passed low carbon fuel standards which is going to drive the price of crude up especially crude from tar sands which is a major source of US crude these days. Not logn before other states follow.
 
peakbagger said:
Most of the EU has made oil not an option for heating, they intentionally tax oil so it will be more expensive than pellets. Otherwise they just plain ban it from use for heating. Therefore unlike the US where oil is an option, pellets will always be in demand for heating in Europe. Shipping raw chips is usually a loser as they take up a lot of volume and weight in water. Shipping pellets makes a lot more sense. The pellet mill in Berlin NH that is being built this summer is planning to ship the majority of their pellets to Europe.

Of course with the impending "carbon tax" on oil, prices in the US will be driven up substantially, so the offset between pellets and oil will probably swing so that pellets are better in the long run. California has just passed low carbon fuel standards which is going to drive the price of crude up especially crude from tar sands which is a major source of US crude these days. Not logn before other states follow.

Yup! Welcome to the AMERICAN UNION. A nice way to drive more manufacturing and jobs out of the US. Cap & trade :-(
 
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