The Great Pellet Shortage of ‘05?
December 2, 2005 by admin
Filed under Green Living
While I have always appreciated the ideals behind pellet wood stoves, there was something about them that prevented me from ever seriously considering their use in my own situations. As the grip of the coming winter grows stronger, I think I’ve figured out what that trepidation is. Relying on others for your fuel supply.
baloghblog is one of the latest to highlight what appears to be a growing problem across the US and Canada, a significant shortage in the wood pellet supply. From the post at baloghblog, according to the Pellet Fuels Institute, the sale of wood pellet stoves was unprecedented this year, catching the pellet manufacturers off guard and they haven’t been able to keep up with the resulting demand.
One of the television outlets in baloghblog’s neck of the woods, Syracuse, NY, even did a piece on the news which baloghblog has got a link to in his post.
Therein lies the problem. While part of the reasoning behind moving to ‘off-grid’ living is to reduce our dependence upon the dirty oil economy, my own quest for life off the grid is also a pursuit of self sufficiency, and with an appliance like a pellet stove, you’re still stuck relying up on others for the fuel, not to mention the market price fluctuations when the demand does exceed supply.
Definitely something to think about when you’re considering the alternatives.
This is the first mention of a potential pellet shortage that I’ve stumbled across since hearing something on the radio a month or so ago. It makes sense that a boom in pellet stove sales would create a shortage, but I’ve also got another hypothesis. One of the major pellet sources in Atlantic Canada is a wood products and pressure-treating company that got into the wood pellets line as a way of making productive (and lucrative) use of small chips and sawdust — but they were also using some of their wood waste to fire the plant’s secondary boiler. So my thought is that the pellet manufacturers might be using more of their wood waste for their own energy requirements, and thus might have less to spare for sale. Just a thought I had. Heard anything along those lines?
Hi Jen!
No, I haven’t heard anything like that, though it could explain part of the reason.
There was a quote in an article that I read a couple of weeks ago (can’t find the source now) from someone connected to a Pellet Manufacturers Assoc in the US who said that stove sales were up over 700% this year. I’d imagine that would be the bigger factor in the shortages.
After I finished saying WOW! — I found a press release from NY state’s consumer protection board urging people to ration their use of wood pellets, and predicting that the shortage — yes, you’re right, attributable to the increased demand for pellet stoves driven by rising energy costs — will last all winter.
“Compounding the problem, leading pellet manufacturers in Canada are in the midst of long-term contracts with buyers in Europe. Those contracts were signed when the demand for wood pellets was low during the mild winters of 1998 and 1999.
Pellet fuel manufacturers indicate that they have made plans to meet future demand by significantly increasing production. In a recent survey, PFI member companies state the industry plans to ship over 350,000 additional tons next year, a 35% increase. In addition, the industry anticipates new pellet mills being added in 2006 that could generate an additional 120,000 tons of pellet fuel for next winter.”
As always, Kevin, thanks for a thought-provoking blog!
Thanks for digging up that reference, Jen!
Well I have just run into the shortage today in Maryland on pellet fuel. There is only one place left to get pellets out of 8 and they are limiting you to 10 bag maximum. This place also sells pellet and wood stoves and had an article in the newspaper back in September 05 on the increase of people buying pellet stoves to either completely heat their house or to supplement the heat they already have due to the rising cost of oil, natural gas and propane. They were on a 6 month back log then just for pellet stoves. The owner had stated the reason for the shortage on pellets is from so many poople buying them. He told me the manufactures are working 24 hours a day to try to get caught up some on the demand and that hopefully by the end of the year, the demand won’t be so great. We can only hope that 2006 will be better.
Hi Deborah - Thanks for taking the time to let us know what’s happening in your neck of the woods. I think what you’re seeing there is similar to what’s happening all across North America and I hope the supply levels improve soon for folks like yourselves.
I hope so to Kevin. The propane costs for heating a large home is just not affordable. Plus the pellet stove keeps it much warmer. For next winter I’ll do as the man at the store advises, Buy them in the summer when there isn’t a demand and they are cheaper. Stay Warm
I bought and paid for 150 bags of pellets from my local distributor. He said they could hold them until April 06. I can come by and get them whenever I wish(1 bag or 150). I went there today to get a pallet of 50 bags(one ton) and I was told I am limited to 10 bags per week because there is a shortage. I am currently using 10.5 bags per week so imagine what will happen if he drops it to 5 per week…
Oh my Chris, that really sucks. You done paid for them, you should get them. Sorry to say, but the one and only guy that has them here in Eastern Shore, Md has now limited them to 5 at a time. Ace Hardware has them now. Last winter they were 3.90 a bag, now selling for $7 a bag………………. Only thing I can say is get someone else to go get you some too. I know this summer, I will have a shed out back with 3 tons of pellets stored in it for next winter.
i ordered a pellet stove .but changed my mind
i see no sense in it .because we should all know by now that the wood pellet companies will first create a shortage etc. then the price of pellets will soar like everthing else…to bad but greed will in time destroy america
Looks like wood pellets are just following the ways of the greedy gas and oil companies,its a shame they sold these stoves as the great cheap way to heat ones home then hook up lots of customers now they play there game becuse your at there mercy one word greed.when baught my stove years ago pellets were $129 per ton in the summer now look at them well over $200 it will only hurt sales and more folks will steer clear as more shortage over the next few winters sets in and gives wood pellet stoves a futher black eye and bad name
Hi guys,
I would like to reccommend this website:
E.nergi.es - wood pellets biomasses and stoves company directory and product reviews.
It’s a community-driven website and, IMHO, a great idea. Anybody can add a company or a product and review it.
Regards