Thursday, October 12, 2006

Another Reason for Avoiding Wood Pellets This Year

Wood Pellet Prices Soar in the US
due to Poor Supply

US residents want to start turning the heat on in their homes this fall and winter. But it's not so easy as it sounds for US woodpellet stove owners.

Some residents have had their names on waiting lists for the past two months. There are reports which suggest that wood pellet waiting lists are up to 500 names long, with residents calling supply stores only to be told they have no idea when the next shipment was due and to "call back again."

People are very annoyed by the lack of wood pellets fuel and even more so by the inflated price tag this year, up from the delivered price of $199 a tonne two years ago to as high as $330 a tonne this year.

Wood pellet producers failed to anticipate the rising demand, as homeowners shunned traditional heating methods because of inflating oil prices.

Authorities say wood pellet production is actually up, but that supplies have been slow in making their way to distributors, and thus prices have risen considerably.

The average price per tonne is around $263 a tonne which is up $40 from the same time last year. This average is likely to rise as the winter goes on.

SEI need to Wake up to Reality

There is no point in stimulating the wood pellet market with grants unless the supply quantity and price are first secured and assured. This is certainly not the case in Ireland. It is yet another reason for me to stay away from wood pellet heating until things are sorted out.

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