As you are aware the cost of living has increased rapidly in recent months making it more difficult for all of us. We have just seen the Bank of England make the largest increase to interest rates in 27 years.

use of wood pelletsLots of consumers have been asking us “what is going to happen to wood pellet prices this winter?” With so many variables impacting costs, it is impossible to predict. As we do all we can to control our costs, other suppliers in the market who import pellets and previously relied on Russian-origin wood pellets, have been struggling to adjust their supply chains meaning the overall market could be low this heating season for wood pellets and demand could be higher than supply.

Our production facilities are working 24/7 to produce as many locally produced wood pellets as we can to make sure we can supply all our existing customers. If you are on our email subscription list for regular newsletters & offers, you would have received several notes encouraging early ordering to avoid any possible surges in demand once the colder weather arrives.

Take Note – As we are entering the winter months we are seeing very high demand for our locally produced wood pellets. As it is only September, we have never encountered so much demand. we have no option but to place restrictions on our bagged wood pellets. we have restricted orders to 1 pallet of 75x10kg per customer. We are sorry for any inconvenience this may cause but we have placed these restrictions to give us the best chance of meeting all our customer needs and avoid any potential shortages this winter.

How to compare energy prices between different fuels

While Wood pellet prices have increased, they remain a very competitive source of energy compared to fossil fuel alternatives such as heating oil, LPG, Natural Gas, and Electricity which have all seen huge increases in the last 6 months.

Please see the table below (5th August 2022):

Energy Source Unit cost excluding VAT Wood Pellet Equivalent Price per tonne excluding VAT
Oil – Kero 28 second 95 pence per litre £440.57
Natural Gas 11 pence per kWh £528.00
LPG – Propane 72 pence per litre £488.13
Electricity 26.42 pence per kWh £1268.16

Benefits of using Wood Pellets

There are many benefits to using wood pellets to heat your home or business. Please see below the top benefits:

  • A cost-effective fuel – Over the longer term, the price of wood pellets has been more stable than fossil fuel alternatives.
  • Carbon footprint– Wood pellets are classed as carbon neutral by the UK and EU as well as most other governments. At Balcas, we produce our wood pellets using only renewable energy which further improves their environmental credentials.
  • Forests can directly benefit – By using sustainable sources of wood fibre for production, burning pellets releases fewer carbon emissions than if trees were left to decompose in the forest. This allows forest management bodies to enhance the rate of carbon elimination from the environment by replanting more younger trees that absorb CO2 faster than older trees.
  • Wood pellets are 100% natural – There are no chemicals or dangerous extracts included that could be harmful to you or the environment. Our wood pellet fuel is made from sawmill residues using renewable energy we produce onsite.
  • Storing is very easy – Wood pellets that come in bags or bulk should be stored in a dry area indoors or in a special fuel store. Guidelines on the storage of wood pellets can be found on the trade association website as follows: http://pelletcouncil.org.uk/wp-content/uploads/2019/12/EPC-ENplus-Storage-Guidelines.pdf

For any queries surrounding this topic, please check out our frequently asked questions section or give us a call on +44 (0) 28 6641 1001, or email energy@balcas.com. Alternatively, you can contact us at any time via our Contact Form online – a member of our team will always get back to you ASAP.

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Thank You,

Balcas Energy