Understanding the Price of Wood Pellets and Market Trends
The price of wood pellets has become a key concern for many consumers as the cost of living continues to rise. With the Bank of England increasing interest rates, many are looking for affordable heating solutions.
Recently, customers have asked, “What will happen to wood pellet prices this winter?” Due to multiple factors, predicting exact prices is difficult. Many suppliers who previously relied on Russian wood pellets now face supply chain disruptions, leading to potential shortages. This situation may increase demand and put upward pressure on the price of wood pellets.
Balcas Energy’s Commitment to Supply Stability
At Balcas Energy, we are working 24/7 to produce as many locally made wood pellets as possible. We aim to support our existing customers and maintain stable supply levels throughout the winter.
If you are subscribed to our newsletter, you have received reminders to order early. With demand already high in September, we have implemented restrictions on bagged wood pellet orders to ensure fair distribution. Customers can currently order one pallet (75x10kg bags) per order to help prevent shortages.
Comparing Energy Prices: Wood Pellets vs. Fossil Fuels
Despite recent increases, the price of wood pellets remains competitive compared to fossil fuels. Over the past six months, heating oil, LPG, natural gas, and electricity have seen major price hikes.
The table below (data from August 5, 2022) compares energy prices across different fuels:
| Energy Source | Unit Cost (excl. VAT) | Wood Pellet Equivalent Price per Tonne (excl. VAT) |
| Oil – Kero 28 sec | 95p per litre | £440.57 |
| Natural Gas | 11p per kWh | £528.00 |
| LPG – Propane | 72p per litre | £488.13 |
| Electricity | 26.42p per kWh | £1,268.16 |
This comparison highlights that wood pellets remain a cost-effective and reliable alternative to fossil fuels.
Key Benefits of Using Wood Pellets
1. Cost-Effective Heating
The price of wood pellets has historically been more stable than fossil fuels, making them a smart long-term investment.
2. Environmentally Friendly
Wood pellets are carbon neutral, as recognized by the UK, EU, and global authorities. Balcas Energy produces pellets using 100% renewable energy, further reducing emissions.
3. Supporting Sustainable Forestry
Using sustainably sourced wood pellets helps forests grow. Harvesting trees for pellets reduces CO₂ emissions more effectively than letting trees decompose naturally. Young, replanted trees absorb carbon faster, helping fight climate change.
4. 100% Natural Fuel
Balcas Energy’s wood pellets contain no chemicals or harmful additives. We manufacture them from sawmill residues, using renewable energy produced onsite.
5. Easy Storage
Wood pellets come in bagged or bulk formats and should be stored indoors in a dry area or in a dedicated fuel store. For best practices, consult the European Pellet Council’s storage guidelines:
Have Questions? Contact Balcas Energy
For more details on the price of wood pellets or to place an order, visit our FAQs or contact us:
Phone: +44 (0) 28 6641 1001
Email: energy@balcas.com
Contact Form: Click Here
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Balcas Energy – Your Trusted Supplier of Premium Wood Pellets
