Sunday, March 16, 2008

Room to Grow!

In 2005 120,000 stoves and fireplace inserts were sold throughout the United States. That number has not grown as many think it could have or should have. As a matter of fact the number actually went down last year. Pellet stoves (as opposed to whole house systems) were new to the European market around 2005. They sold somewhere in the neighborhood of 16,000 stoves that year. Last year in Europe over 360,000 pellet stoves were sold. What a difference! and Why? Government incentive is still the number one reason in my opinion. Gas and oil prices are much less subsidized and Europeans are encouraged to look to other fuel sources. Then there is the Kyoto protocal and green movement, two areas where we are gravely lacking.
Yet there is hope, and time to change. At the Pellet Forum in Wels, Austria last week the US was declared a country with large growth potential in the pellet market. Of course, Americans in the crowd had to endure a little bit of a beating on why we are so far behind, but the end message is, I believe, a positive one.
Pellet use in the US was estimated between one and one and a half million tons of pellets last year. A source in the pellet industry said there is about 90 million ton of unused wood waste available in the US right now. That is one of the strongest assets we could have. As more pellet mills come on line each year our supply grows, and costs, as always, have remained stable relative to other energy's such as oil.
There is a large commercial and industrial sector that is untapped in this country, and the Europeans have noticed. Some Americans as well. Growth in this sector may open up doors to government support and incentive, as well as push the industry into bulk distribution, and whole house systems that are sparsely available, and still manually demanding with the fuel loading.
Wood pellets have actually had an impressive ride when you consider that we are the only fuel with no government incentive or support. Ethanol is subsidized at $.51 a gallon for example. Even wind and solar energy's have rebates, and incentives in place. The PFI seems to be waking up and taking action, FINALLY. They have had a growing relationship with a lobbying firm, and there are now several people in the industry who are focusing on creating, introducing, and getting bills brought to the attention of our congressmen and senator's. While we have not yet successfully had a bill move through to active status we are gaining ground, and attention in Washington.
I am excited for the future of wood pellets. It is a fuel that is local, renewable- at this point still made from waste products otherwise destined for landfills, carbon neutral, and affordable!

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