Markets - Residential

WOODSTONE's wholesale market distribution is driven by residential demand for wood pellets. Approximately 800,000 American households use wood pellets as their primary or secondary heat source. Nearly half of all pellet-burning appliances are purchased in the Midwest or Northeastern regions of the US. Woodstone will have production facilities in both regions.

The key market drivers for the residential wood pellet market are:

Economics

An average home in Massachusetts, which uses 72 MBtu's for space heating, will consume 519 gallons of fuel oil (138,000 Btu's/gallon) for space heating on an annual basis. In 2007, with prices at more than $3 per gallon, the average home spent $1,550.

At current market prices of approximately $240 per ton, an efficient pellet appliance would achieve the same number of Btu's for $945. Each pound of pellets contains 8,500 Btu's and pellet appliances are 7% more efficient than fuel oil appliances.

 

 

 

 

 

 

 

 

 

Global Warming

This same household will emit over 11,400 lbs (22 lbs of CO2 per gallon) of carbon dioxide annually, just from heating their home with fuel oil. Wood Pellets are considered carbon neutral (the same amount of carbon dioxide emitted when burning pellets is consumed while a tree grows in the forest) therefore; the average household will enjoy a considerably smaller carbon footprint by heating their home with wood pellets.

Energy Independence

Consumers have also started to realize that, as a society, we must seek out alternative heat and energy sources that do not rely on foreign nations. Wood pellets are produced domestically and derived from an abundant source of local raw material. Additionally, the wood pellet industry supports the local logging and transportation industries, creating jobs and revitalizing once lucrative businesses.

Calculate your own savings by visiting the Pellet Fuel Institute Web site.

Calculate your carbon footprint at the Web site for An Inconvenient Truth.