Pellet Plant Proposed in Southern Maine

Status
Not open for further replies.

lessoil

Minister of Fire
May 31, 2008
730
Rumford, Maine
Yes, that is good news!
I hope that this is a sign that we are finally serious about finding an alternative to oil.
Last night the national news had a segment which showed that some U.S. companies are starting to move
their production back to the states because of the rising cost to ship.
This might be the silver lining in the dark cloud that is over us.

Thanks for the info!
 

MainePellethead

Minister of Fire
Dec 9, 2007
904
Southern Maine
lessoil said:
Yes, that is good news!
I hope that this is a sign that we are finally serious about finding an alternative to oil.
Last night the national news had a segment which showed that some U.S. companies are starting to move
their production back to the states because of the rising cost to ship.
This might be the silver lining in the dark cloud that is over us.

Thanks for the info!
I saw a news show as well that told of U.S. Companies moving some production back over here more and more.
 

mlwschultz

New Member
May 1, 2008
104
Southern Maine
Sounds promising! D&J;is who we got our Harman XXV stove from & our pellets. So hopefully this will keep the prices down in this area & continue to increase the available supply. Thanks for the info!
 

j00fek

Feeling the Heat
Jun 9, 2008
472
Auburn, Maine
the more plants the better, i bet by next years heating season we could be looking at lower prices all around maine for pellets
 

sinnian

Minister of Fire
May 28, 2008
894
Limerick, Maine
This could actually be bad for Maine pellet users. LOOK we have a bunch of mills online now and we are at the high end of pellet prices versus other areas of the country ~ why is that?

Perhaps this is due to there being a limited supply of biomass, and as the laws of supply and demand dictate the biomass costs more in Maine. Lee previously commented on loggers getting $40/ton, Eric mentioned the other day he had heard $50 where he is, I heard $70/ton the other day here in Maine. Remember the mills are not the only ones competing for the biomass, farmers, and alternative energy producers are too (Red Shield, though they just filled for bankruptcy). So while there may be MORE pellets available in Maine in the future, it may not necessarily be any less expensive, and may in fact be more money.

~Just some thoughts I had.................
 

webbie

Seasoned Moderator
Nov 17, 2005
12,184
Western Mass.
Remember that is a ton of wet wood - so do the math and a ton of dry wood - debarked - is worth much more.

I agree that supply will not always bring prices down - there are many fixed and variable costs involved, and the folks putting up the plants and supplying the feedstock need to be paid for their efforts and risk. But even of the supply is good and price stable.....not low, but stable - that helps a lot too. Folks here tend to be thinking about this stuff year-round, so they can often flush out a good off-season pellet deal.
 

Sting

Feeling the Heat
Jan 8, 2008
477
Wisconsin
sinnian said:
This could actually be bad for Maine pellet users. LOOK we have a bunch of mills online now and we are at the high end of pellet prices versus other areas of the country ~ why is that?.
Most likely because your close to major shipping and the product being made in your back yard, is sold and shipped to the more lucrative European markets and there "air" delivery systems!
whipping.gif
 

JustWood

Minister of Fire
Aug 14, 2007
3,596
Arrow Bridge,NY
Sting said:
sinnian said:
This could actually be bad for Maine pellet users. LOOK we have a bunch of mills online now and we are at the high end of pellet prices versus other areas of the country ~ why is that?.
Most likely because your close to major shipping and the product being made in your back yard, is sold and shipped to the more lucrative European markets and there "air" delivery systems!
whipping.gif

I read somewhere recently that this is the reason many are being located in Maine. Hopefully they(pellet mills) were smart and also located them close to railroads so they can get raw product shipped in cheaply.
 
Sting said:
sinnian said:
This could actually be bad for Maine pellet users. LOOK we have a bunch of mills online now and we are at the high end of pellet prices versus other areas of the country ~ why is that?.
Most likely because your close to major shipping and the product being made in your back yard, is sold and shipped to the more lucrative European markets and there "air" delivery systems!
whipping.gif
im not aware of any maine plants that are exporting pellets overseas. there were plans to do so, but the local demand has taken care of that.
also.. the current hysteria over pellet availability is fueling the price disparity between the northeast and upper midwest.
and... these plants are just coming online with over 250k tons of capacity operating for less than one year. have you ever tried to start up any kind of manufacturing process? any one familiar with new startups will tell you that it takes at least a year to get most of the bugs worked out. im amazed that they are doing as well as they are with production.
 

MainePellethead

Minister of Fire
Dec 9, 2007
904
Southern Maine
Thats right....I know Corinth was suppose to send some out of the country....but Ken(owner) has breakfast with my inlaws every Sunday and he has said he has no need to send out of the country as the need is great here and sees no problem getting rid of the max. capacity he plans on being at.
 

slls

Minister of Fire
Jun 9, 2008
1,497
central maine Lat 45
IF the price of oil drops, we will be awash with pellets. It is just too easy to turn up the thermostat and leave it there all winter.
 

cimbo190

New Member
Jun 28, 2008
57
southern maine
Webmaster said:
Remember that is a ton of wet wood - so do the math and a ton of dry wood - debarked - is worth much more.

I agree that supply will not always bring prices down - there are many fixed and variable costs involved, and the folks putting up the plants and supplying the feedstock need to be paid for their efforts and risk. But even of the supply is good and price stable.....not low, but stable - that helps a lot too. Folks here tend to be thinking about this stuff year-round, so they can often flush out a good off-season pellet deal.
STABLE is the key word. That is the main reason for my conversion to pellets. At the end of the day, I am buying a certain quanity (by the ton) which can undergo a price swing of 20-30% and only cost me a little more since I am only using 4-5 tons.
 
Status
Not open for further replies.