Pellet supply and demand...........

steam man Posted By steam man, Sep 25, 2008 at 11:11 AM

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  1. steam man

    steam man
    Minister of Fire 2.
    NULL
    

    Jan 19, 2008
    652
    5
    Loc:
    Northern Maine
    Check this article out-http://www.bangornews.com/detail/51497.html

    Mike
     
  2. Shortstuff

    Shortstuff
    Feeling the Heat 2.
    NULL
    

    Jun 5, 2008
    461
    3
    Loc:
    Southeastern MA
    It seems the further away from the pellet mills the less supply there is and the prices are going even higher. However, I'm not sure I agree with this statement:

    "Even if the price of pellets doubles, energy experts say, it’s still more cost-effective than oil..."

    Steve
     
  3. imacman

    imacman
    Guest 2.
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    Given a cost of $400/ton for pellets @80% efficiency, and oil at $3.50/gal at 80% efficiency, pellets would be approx $1.20 cheaper per Million BTU.

    If oil was higher, obviously the savings would be even greater.

    I figured this using the Pellet Fuel Institute calculator

    www.pelletheat.org/3/residential/compareFuel.cfm
     
  4. MCPO

    MCPO
    Minister of Fire 2.
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    May 1, 2008
    2,302
    144
    Loc:
    western Ma , close to NY state border
    [quote author="
    "Even if the price of pellets doubles, energy experts say, it’s still more cost-effective than oil..."

    [/quote]

    I seriously doubt the above. However if you are willing to live with less heat output which translates to less area heated along with much less even temperatures throughout the house, you *could* save some money. But you would have to accept and live with the reality of space heating as in returning to pre 50`s times vs central heating system.
    It`s really not difficult but being that the past 3 generations have always been exposed to the luxury of abundant heat , this could be mighty uncomfortable for some.
     
  5. slink

    slink
    New Member 2.
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    Sep 21, 2008
    92
    0
    Loc:
    Western NY
    I use a cost calculator put out by PENN STATE. I don't have it here but if I remember it right pellets at $250 per ton equals oil at $4 per gal. The propane was about $1.20 a gallon to equal out. Don't quote me on those numbers I'll try to remember to bring it home tomarrow.
     
  6. imacman

    imacman
    Guest 2.
    NULL
    

    Actually, their calculator ends up the same as the PFI one. $4.00/Gal oil is 2x more expensive than $250/ton pellets
     
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