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.
Some of you 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 what will happen. While 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. This means the overall market could be low come for wood pellets and demand could be higher than supply.
Our production facilities are working 24/7 to produce as much as we can to make sure we can supply all our existing customers, we will surely not be able to make up the shortfall that might be left by competitors.
If you are on our email subscription list for regular newsletters & offers you may have seen several notes encouraging customers to order as early as possible to avoid any possible surges in demand once the colder weather arrives. It may be just August, but we are already seeing much higher demand than normal.
How to compare energy prices between different fuels
Wood pellet prices have increased, but 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:
|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 [email protected] 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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