Wood Pellet Prices and the Cost of Fuel

The increased rise in fossil fuel prices was one of the key driving factors of the growth of the wood pellet market at the beginning of the 21st century. In the future the price difference between wood pellet fuel and fossil fuel energy particularly oil and gas will continue to rise due to limited resources, increasing global demand due to global population increase and also green taxes placed on fossil fuels due to the carbon emissions they generate. Currently the energy used to produce wood pellets is sourced from power plants using fossil fuels, therefore the rising price of fossil fuels does impact on the prices of wood pellets. However as more power plants use renewable and sustainable energy sources the prices of wood pellets should be more stable. For example today many coal power plants are burning wood pellets along with coal to reduce carbon emissions. Straw pellets are also being used in many coal power plants as they are much cheaper to produce than wood pellets, and generate a similar energy output. Burning straw pellets can generate issues with regards to ash content, clinker formation and increased corrosion. However these issues are already well known to the plant owners as there are also the characteristics of burning coal. More pellet plants in the future will generate electricity on site with their own renewable generators.

Wholesale Wood Pellets and Online Pellet

As with all goods, better prices can be acquired by purchasing goods in bulk or wholesale. Pellets are no exception, the biggest cost of getting wood pellet fuel to the consumer is the price of transportation. Therefore ordering pellets wholesale the consumer can get a much better deal. However there is then the issue of storage of such a large volume of pellets, as even in plastic bags the pellets should not be stored outside as the bags are breathable so condensate does not form on the inside of the bags, degrading the pellets. The internet has established a new era of wholesale purchasing, and again pellets are part of this new era. Wholesale and bulk wood pellet prices are frequently promoted around the internet, and there are some very good deals to be had. However there are also some risks in the quality of fuel being sold.

The key issues with a lot of the wood pellets sold online is the grade of fuel the pellets are promoted as and their actual quality. This not only effects the value of the fuel, but whether the pellets can actually be used at all. For example the market leader in pellet fuels are premium wood pellets. Premium wood pellets produce the least ash, and are only produced from selective wood residues. In all western countries including Europe and the US, for a pellet to be sold as a premium pellet it must meet strict criteria to protect consumers. Western pellet manufactures must agree to meet these standards to promote the pellets as premium grade, to collect the premium price. However many pellet wholesalers on the internet source the pellets from developing countries, as the raw material and production costs are so much cheaper. There is obviously not as much control on the production conditions and the quality of the fuel pellets, and they are sill sold and promoted as premium pellet fuel. Many pellet stoves and boilers cannot use any fuel pellets other than premium grade pellet fuels.

PelHeat Wood Pellet Production Guide

At PelHeat we have many years of experience in pellet production, and we provide a pellet production consultation service. The PelHeat guide download will show you how to make wood and other fuel pellets.

The Wood Pellet Production Guide © PelHeat Ltd - Wood Pellet Prices