The final factor, which will affect wood pellet prices over time, is based on pellet burner capabilities and demand for premium wood pellets. Premium wood pellets are a very low maintenance, low ash fuel. As most residential customer are looking for such a fuel as a direct replacement for oil or gas, most manufactures of wood pellet stoves and boilers deign the units with the ability to burn premium pellets and no more. Hence if you try to burn higher ash content pellets or pellets with corrosion and clinker issues, the stove will not operate in an acceptable manor.
Currently as there are sufficient resources to produce premium wood pellets this is not an issues. However as the wood pellet market continues to grow, at its current rate and if pellet stove manufactures keep producing stoves, which can only burn premium wood pellets, this will ultimately lead to price increases. The reason is simple, most pellet customers have purchased a stove, which can only use premium wood pellet so they are trapped into paying for them, not matter what the price. Currently this situation is not an issue for the premium wood pellet producers because it guarantees them the ability to dictate fuel prices, similar to how the oil companies do currently.
The most important point to take from this is when purchasing a pellet stove or boiler research a unit that is as fuel flexible as your budget will allow. This could be regard to maximum pellet ash content, corrosion resistance, ability to deal with clinker and a large ashbin or ash removal system. Even if you currently only intend to burn premium wood pellets, purchasing a burner that can burn different types of pellets will mean you will have a choice to burn other types of pellets when the price of premium pellets increases.
The PelHeat Mobile Pelletizer can process resources including wood into fuel pellets. If you would be interested in registering your interest in the PelHeat Mobile Pelletizer and receiving updates on our progress and informed when the pelletizer is on sale please send us an email to:
Contact @ PelHeat . Com
For more information please visit:
www.PelHeat.com
Thank you for your interest
