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Pellets are quickly losing cost advantage .

Post in 'The Pellet Mill - Pellet and Multifuel Stoves' started by MCPO, May 15, 2008.

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  1. MCPO

    MCPO Minister of Fire

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    western Ma , close to NY state border
    Right now pellets here in Berkshire county (western Ma) are $250-$290 a ton and I was told the price won`t be any lower this summer so I ordered mine to be delivered tomorrow.
    The volume of pellet stove traffic in the showrooms in this area is unusually brisk and unprecedented for this time of year which will undoubtedly result in many sales and more pellet useage adding to the marginal supply that already exists. You can bet pellet prices will increase substantially and according to demand and demand is certain to rise. The energy situation definitely doesn`t look good no matter what you heat with.
    John

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  2. TboneMan

    TboneMan Member

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    I just ordered the 5 ton I need for $199.00/ton plus a flat $15 delivery fee (not per ton, just $15) from a local vendor. This was factory authorized sale offered through New England Pellet's, new Schuyler, NY plant for order received before 5/31.

    I'm happy!
  3. MCPO

    MCPO Minister of Fire

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    That`s pretty good. No deals like that exist around here. I had one quote of $250 per ton and $50 more per ton delivered.
    I ended up buying them from a lumberyard at $267 a ton delivered.
    John
  4. Jags

    Jags Moderate Moderator Staff Member

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    That right there is why I chose a wood burner (and heat without power). Pellets do go up/down with other fuel costs. I can harvest wood with little cost involved, well, once the chainsaw, splitter, and trailer are paid off. %-P

    p.s. the saw, trailer and splitter (home built) have been used long enough that they are actually paying me back, and have for several years now.
  5. mrmichaeljmoore

    mrmichaeljmoore Member

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    Tboneman---

    Care to divulge your source?
    I'd like to check to see if they will deliver to my area.

    thanks.
  6. BubbRubb

    BubbRubb New Member

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    I paid $189/ton for Hamer's Hot Ones (my favorites). A couple of stove shops in my area have Juniata (Energex brand) for $160/ton. This is pick-up, though. At that price, they haven't come close to losing their cost advantage.
  7. TboneMan

    TboneMan Member

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    B&B;Wood Pellets but they are near Syracuse, NY (Chittenango). I think NEWP is trying grab a big chunk of the central NY pellet market since they now have a 100,000 ton/year plant sitting here. This price reflects a $25-$40 discount per ton compared to heating season prices.

    It is a good thing for us.


    Speaking of their new plant. They are having an open house Saturday. I don't think I'll be able to attend, but others might be interested.

    http://www.pelletheat.com/
  8. MCPO

    MCPO Minister of Fire

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    Wood is the cheapest, that`s for sure . I could have had all I wanted for $160 a cord cut ,split, and delivered but I burned wood for 12 years and don`t want to anymore. Great heat and lowest cost but it`s filthy , dangerous , long hard work , and only for the able. Buying it cut split and delivered can reduce 50% or more work but it`s still filthy , dangerous , and too much work for me and my wife .
    The average cost is rising too, it`s near $200 a ton now. In the cities its a lot more.
    The heat is good but uneven and needs much more attention. I liked burning wood but it was no picnic either. The wood gets handled four to five times. Everything has it`s advantages and disadvantages. Pick your poison.
    John
  9. geek

    geek Minister of Fire

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    isn't that the new plant they built and that just started production a couple months ago?
    the plant I'm talking is in West Schuyler, NY and they produce the Warm Front brand......which brand did you get?
  10. MainePellethead

    MainePellethead Minister of Fire

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    Wood was not the cheapest around Maine this past winter unless you bought it way way early or had your own lot but during the season was as high as 300 bucks a cord cut, split and delivered while Pellets stayed at 223 a ton. I'm not worried about pellets skyrocketing....maybe 20 bucks....but its the same every year....buy EARLY....you wait til the season and you'll be whining even more because there high. Summer is an awesome time to buy....June-ish or so. :)
  11. TboneMan

    TboneMan Member

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    sn’t that the new plant they built and that just started production a couple months ago?
    the plant I’m talking is in West Schuyler, NY and they produce the Warm Front brand......which brand did you get?


    Yes, that is the West Schuyler plant. They started production in December (07) as I recall.

    Locally, the pellets are packaged under the NEWP label (tan bag, brown lettering), with West Schuyler listed as the source.

    I bought 2 tons during the winter that were produced there. They were as good or better than others that I tried. It is good to support the local economy.
  12. JoeS

    JoeS Feeling the Heat

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    I just purchased 5 tons of Hamer's Hot Ones for $222/ton. this includes delivery and stacking. Actually this is less than I paid last year per ton when I was picking them up myself!
  13. ugenetoo

    ugenetoo New Member

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    i think pellet prices will drop or at least stay the same here in the northeast. huge capacity at new plants coming on line this year will drive the fob cost down eventually, when the plants get all the bugs worked out. that usually takes a year or so. we have new large scale plants recently starting up or coming on line soon in athens me,schuyler ny, east corinth me,and doubling of capacity at jaffery nh. im sure i have missed some. all in all, i believe that the only increase we will see for the forseeable future will be for trucking.
  14. MainePellethead

    MainePellethead Minister of Fire

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    Cant forget Strong Maine....which will be grinding whole trees as well. Suppose to be taking over where the closed paper mill left off. I think Maine looks very well for pellets in the future :)
  15. Jags

    Jags Moderate Moderator Staff Member

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    Giovanni - I agree that it is far more work, but I consider it my health club (and maybe I should still visit a health club once in a while. :shut: ) I can see myself, one day, looking for an alternative also.
  16. PutnamJct

    PutnamJct Member

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    July 06 4 tons Dry Creek @ $239 - total with delivery $1004.54
    Apr 07 4 tons Barefoot @ $209 - total with delivery $896.33
    Apr 08 4 tons Barefoot @ $229 - total with delivery $955.61

    Local Dealer, bought early each year to avoid scramble.
    No comparison to the rise in oil prices over the same period. July 06 barrel of oil $75, it is now in the $120's.
    Different scenarios for different markets. My price is better then yours, but the Midwest is better then mine.
  17. mrmichaeljmoore

    mrmichaeljmoore Member

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    PutnamJct --

    who's your supplier?

    I like the Dry Creek pellets....I'd be curious to see if they are available this year.....and I'm not too far from you in CT.
    I've never heard of Barefoot....I wonder how'd they would bee in my Whitfield Profile 20 stove?

    thanks.
  18. Flammam

    Flammam Feeling the Heat

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    Just prepaid for 4 tons of NEWP at 205 delivered this will last me the entier winter. Just got the oil tank filled today also 4.36 gal. I would use a full tank every 5 weeks during the winter. 820.00 for pellets house 74-76 degrees vs. 4350.00 for the season for oil house 62 degrees. I think I can haul a few bags of pellets around for the difference in price.
  19. Xena

    Xena Minister of Fire

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    Pellets at 250 a ton look waaaay better than
    the 4.10 a gallon my oil man wants.
    I bought my 3 tons already for $758 delivered.
    Ordered them about 3 weeks ago.
  20. TboneMan

    TboneMan Member

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    My last propane fill was in February and the price was $2.60/gal.

    If that stayed constant (which it can't, oil was only $100/barrel then), given the work involved and the cost savings, I'd feel comfortable buying pellets up to $255-$265/ton range.

    Should propane spike another dollar a gallon (about what it did this year), I'm still ahead if pellets get up $100/ton over what I'm paying this year.

    Not that I'd want to pay these prices, but should it come to it, pellets are likely to beat oil base products for heat.
  21. PutnamJct

    PutnamJct Member

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    Tri-County Coal, Inc.
    113 Old Route 6
    Carmel, NY 10512
    (845) 279-2046

    They carry Dry Creek also. I found the Barefoot to be a lot cleaner, less fines less ash.
  22. MCPO

    MCPO Minister of Fire

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    This is exactly the kind of post that I have written about before. Absolutely misleading.
    How 4 tons of pellets can produce and surpass the BTU`s to equal the BTU`s that 1000 gallons of fuel oil will produce is a mystery to me.
    I suspect your oil heat might all be going up the chimney as your furnace must be defective and maybe you should consider a replacement .
    Possibly you mean to write 62 degrees in each corner of every room in the house with oil as opposed to 74-76 degrees in front of the pellet stove?
    Of course the full tank of oil is to heat your hot water, otherwise why fill the tank ?
    I have to think you might be exxagerating a bit with your above conclusion that 4 ton of pellets will produce the heat of 1000 gals of oil.
    John
  23. Wet1

    Wet1 Minister of Fire

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    ^ Agreed. No way will 4 tons of pellets put out enough heat to warm an entire house to 75* if it takes a 1000 gallons of oil to heat the same area, and only to 62* at that. Definitely something fishy there.

    1000 gal. oil = ~139,000,000 btu
    4 tons pellets = ~68,000,000 btu

    That's less than half the btu's...
  24. Flammam

    Flammam Feeling the Heat

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    Western, Ma.
    Here is what I have personally experienced. Last heated the house with oil 4 years ago used 950 gallons from late Oct. to May. This is for heat and hot water. This winter used 4 tons of pellets kept house at 72-75 at the stove degrees all winter. 70-73 upstairs furthest away from the stove. Used 200 gallons of oil to heat hot water during the same time period. So you could say my oil usage was off by 25% at the most. However the house was approximatly 10 degrees warmer.
    900 gallons
    -200 for hot water
    700 gallons
    5 months
    140 gallons month just for heating(no hot water)
    140x4.36=610.00 month for heat

    4 tons pellets/5mo=1600lb/mo
    820/5=164.00mo

    There have been NO energy improvements in the house in the last 10 years
    New windows and insulation in the attic is coming this year
    Maybe my boiler is suffering, however it is relativly new 10-12 years old.
  25. MCPO

    MCPO Minister of Fire

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    Hey Flamman,
    I live in western Ma too. I`d like to come over to see your house and setup and maybe I could learn something.
    John
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