Geneva Marketing

Interesting data on space heating

2011-10-28T15:24:00.002-04:00

The Energy Information Agency always has interesting stats about energy usage. Wood pellets have traditionally helped those who are tied to heating oil in the Northeast and propane in the Midwest. A secondary heat source like a wood pellet stove takes a lot of pressure off a household's furnace.

What shocks me most about this infographic is the percentage of households using electricity for heating in the Midwest. Electricity costs have decreased substantially since natural gas prices pulled way back a couple of years ago, but it's still an eye opener.

Thermostat turns "cool"

2011-10-25T09:32:00.002-04:00

Nest Labs is coming out with a new thermostat that promises to make managing your house's temperature, "cool." Their founder comes from Apple and is credited with leading the team that brought us the iPod. The next best thing to alternative fuels, namely wood pellets, is conserving heat. This devise will help you manage your homes temperature based on your behavior, habits and preferences for comfort. A really smart idea!

Orders are up, so is oil

2011-10-25T08:37:00.002-04:00

The pellet market is continuing its surge this heating season. Orders in the Northeast and Midwest are strong! Michigan Wood Pellet Fuel has a long waiting list, our lead time for new orders is 8+ weeks. Geneva Wood Fuels in Maine is still accepting new dealers and production increases weekly, but every week is completely sold out and we have no inventory.

We are witnessing a surge in crude oil prices this week, back close to $95/barrel. This will only compound the growing issue of trying economically heating your home if you are tied to heating oil or propane. Look to pellets for relief!

Boston Globe telling it straight

2011-10-13T06:03:00.002-04:00

"Heating oil bills expected to soar" The message doesn't get any more direct than that. Pellets will help to provide relief to thousands who have decided to make the switch.

Oil, gas or something else - WBZ Boston

2011-10-11T08:59:00.003-04:00

Got oil? Switching to natural gas is a great option for some people, but can be cost prohibitive depending on where you live and whether or not its already in your neighborhood. The best current alternative is installing a pellet stove. The local CBS affiliate here in Boston did a piece on the 11 o'clock news last night on this very topic. Interesting read, the video is available too.

WoodPellets.com on NECN

2011-09-14T12:12:00.002-04:00

"Pellets at $240 are the same as paying $2.00 for heating oil." Reason enough to pay attention to this spot on New England Cable News featuring one of our loyal customers, American Biomass, aka woodpellets.com. Congrats to the whole team at woodpellets.com for getting the word out there on the many benefits of burning wood pellets instead of heating oil to stay warm.

Three reasons to cheer higher oil prices

2011-09-09T10:24:00.001-04:00

Number 2 is the best, reducing our dependence on foreign oil

I think we knew this already...

2011-09-07T12:32:00.002-04:00

Heating oil prices will reach record highs this season. The press will run with this one for a while. Pellet consumers will beat the high costs of heating oil by burning pellets to keep warm this winter. Pass this on to your friends and family who need to install a pellet stove.

Jackson Labs, commercial pellets

2011-08-25T10:14:00.002-04:00

Jackson Labs of Bar Harbor Maine burns wood pellets in a new $4mill. state-of-the-art plant to create energy. Geneva Wood Fuels has entered into a five year contract to supply Jackson Labs with wood pellets. As highlighted in the article, this project supports a lot of Maine jobs while greatly reducing Jackson Labs' dependence on foreign oil. This is a poster child project for the development of commercial applications for wood pellets here in the US.

Corn, no end to high prices

2011-08-24T16:44:00.002-04:00

The corn market continues its tear. Last month corn continued its climb toward a wholesale price of $6.46/bushel, setting new records. This will drive owners of multi-fuel stoves to wood pellets in droves this season. We saw this in 2008 and it looks like it will repeat itself this season. Our dealers throughout the Midwest, where corn is a more popular alternative fuel, are encouraging their consumers to get their orders in for pellets as soon as possible. Pellets will be a hot commodity this season, pun intended.

Military embracing cleantech

2011-08-18T15:39:00.002-04:00

Great revelations this week regarding the military's embrace of clean technology, in particular biofuels. Shouldn't the government's use of renewable energy for space heating be on the table for discussion? Think of the millions of square feet the government operates and must heat during the winter. Our government would save millions where they are exposed to heating oil and reduce their carbon footprint exponentially if they converted to wood pellets.

Bachmann is dreaming

2011-08-18T15:32:00.003-04:00

Michelle Bachmann is a rather interesting candidate for President. She tends to make comments that catch a lot of attention. This latest one regarding the price of gas if she's elected is her latest. If we see $2 gas when she's President that basically means we'll be back in a recession, some say we are already back in one and gas is still $3.50.

The petroleum markets are much bigger than the President.

It's not a 2008 tumble

2011-08-08T09:27:00.002-04:00

The heating oil industry is telling us that it won't be another 2008 tumble in oil prices for very good reasons. We have all seen oil prices drastically come off of highs we saw earlier this summer. However, most analysts believe we won't see another "2008 like" decline down to the mid-30's.

Check out the article on the link above.

"Get Ready for $150 Oil"

2011-07-05T11:36:00.002-04:00

The title says it all. Really interesting read from the Barons about the next couple years of oil pricing.

That didn't take long...

2011-06-29T12:17:00.003-04:00

Oil heads back to $95/barrel after giving up $5 last week on the announcement of the release of 60 million barrels of strategic reserve oil world wide. Looks like it was truly too little too late for Obama to head off a lot of GOP mud-slinging all summer.

A hybrid power plant, interesting thinking

2011-06-27T08:42:00.002-04:00

No mention of biomass thermal or electric, but this is an interesting piece on how GE is thinking about hybrid power. Clink link above for CNN video.

What's the Saudis' next move on oil?

2011-06-24T14:21:00.004-04:00

The most interesting piece of yesterday's announcement by the IEA to release 60 million barrels of oil from the strategic reserve has yet to be realized. Notice only a $4 drop in oil over the last 24 hours, traders are eagerly wondering what OPEC (or the Saudis) will do in response. If they cut production, look for prices to rise, hence squashing any hopes of the Obama administration from getting the much needed political boost from this move. If production quotas stay unchanged, look for prices to relax but then head right back to where they are now as the summer driving season kicks in. Either way, the consumer will be looking to pellets to save on home heating this season. We've never been through a full heating season with oil prices at or above $90/barrel, consumers will be hit hard trying to heat their homes if they don't embrace alternative heating fuels.

Jackson Labs

2011-06-22T11:36:00.001-04:00

Geneva Wood Fuels of Strong, ME is going to supply a lot of the wood pellets used to fuel the new biomass boiler at Jackson Labs. Click the link above for more information.

I couldn't agree more!

2011-06-22T11:18:00.002-04:00

I made a huge mistake over the last couple years and did not get my flue cleaned out. My stove shut down towards the end of the season because the air was cut off. Not only did it keep me from running my stove, it was probably a serious hazard. A clean stove is a happy stove!

Make that $8/bushel!!

2011-06-09T16:17:00.002-04:00

It turns out corn won't even be a factor this season! Wood pellets will be that much cheaper than trying to heat with corn.

Click link above. "Corn jumped to the highest price in almost three years after the U.S. Department of Agriculture forecast tighter supplies, as adverse weather hurt crops."

Market Pricing on Heating Fuels - Pellets WIN

2011-06-09T15:52:00.002-04:00

I always find it interesting to keep track of the cost in $/MBtu for different heating fuels. Given the climb over the last several months back to $100/barrel of crude, fossil fuels including heating oil and propane are going to be very expensive compared to wood pellets. The other primary alternative in the Midwest, corn, remains high and we see no let up in sight.

Wood Pellets will represent a major savings this season!

US Falling Behind on business of "Green"

2011-06-08T21:15:00.002-04:00

Interesting, yet hardly surprising, piece from The New York Times on how the US is falling behind on the business of green. Other nations, mostly in Europe, are benefiting from subsidies and incentives to make buildings and homes more efficient and leverage alternative fuels. The US will not catch up or take a leadership position unless a unified Congress agrees on a meaningful new energy economy.

OPEC Leaves Production Quotas Unchanged!

2011-06-08T09:50:00.004-04:00

This is surprising news that the member nations of OPEC (where 40% of the world's oil comes) decided to not increase production quotas. An increase in production would have surely caused petroleum products to decrease in price. This will impact the summer vacation schedule, perhaps pull us deeper towards a double dip recession and make heating oil more expensive for next season. The wood pellet market will surely be impacted as well. The Spring pre-buy was very successful for everyone and this latest news will only make the continued sale of wood pellets and stoves that much more brisk.

Inbound Marketing Trends

2011-06-07T16:35:00.002-04:00

Companies are increasingly turning to in-bound marketing to attract customers. Click on the link above to find an interesting info-graphic on these recent trends.

In-bound marketing is proving to be less expensive, more effective and easier to measure. Geneva recently attracted two new customers who found us on facebook. The wood pellet industry is catching up to these trends. Tell us if you've had any recent customer "wins" because of your inbound marketing efforts, blogs, facebook, twitter, etc...

What drives the pellet market?

2011-06-07T12:34:00.002-04:00

The forces that drive the wood pellet market are political, economic, technical and social.

The biggest factor for consumers who rely on pellets for home heating is economic. The more it costs to heat your home with fossil fuels, the more pellets are sold to keep warm.

Given the recent unrest in the mid-east, political forces also play role since many Americans wish to distance themselves from foreign fuels.

The technology for secondary space heating is mature, there are any number of high quality pellet stoves to chose from. The more exciting technical developments relate to central heating solutions in the home and commercial heating applications for municipalities and businesses.

The social factor is gaining momentum as many Americans are gravitating to products and solutions which reduce their carbon footprint.

Off-Season Demand

2011-05-18T15:05:00.002-04:00

When asked: When are you going to buy your wood pellets this season:

- Spring 2011

- Summer 2011

- When its cold

92% of respondents tell us they will be buying some time this spring or summer, rather than waiting until they turn on their stoves this fall. Might be a good idea to reserve your pellet supply while they are plentiful.

Propane Market - Informative Brochure

2011-04-07T09:28:00.000-04:00

The US Energy Information Administration published an informative brochure in 2007 regarding the US propane market. The biggest take away is that the single largest catalyst to higher propane prices is the price of crude oil. According to the Michigan Department of Energy Labor and Economic Growth the last recorded average price of propane for this season was $2.39/gallon on March 14th. That same day, crude oil prices were around $100/barrel, 10% lower than today, a mere three weeks later. We should expect higher prices still for propane next season.

If you are tied to propane for heating your home, consider buying a pellet stove to keep your costs down next season.

Pellets at the grocery store?

2011-02-28T17:04:00.004-05:00

At least three times a year someone asks me if I would like to sell wood pellets to a grocery chain. Each time I think how great it would be if pellets became a convenience item like smart logs. Then it always comes down to logistics and care. Logistics, how are the individual pallets going to get in front of store? Care, who is going to ensure that the bags remain in good condition. Well it turns out the first question is solvable, but the second might need some extra thinking. Check out the photo I took outside a grocery store near my office today.

Keep it clean

2011-01-11T13:46:00.003-05:00

The best way to keep your pellet stove running well is to keep it clean. There are periodic preventative maintenance things you can do on your own during the season, but I would suggest having it professionally cleaned at least once a season. The eHow article above provides some basic direction, you may want to refer to your owners manual as well.

Happy pelleting!

It's worse than 2008!

2011-01-11T13:01:00.002-05:00

Our friends at woodpellets.com made a press release today. It speaks the truth about the high energy prices we are experiencing right now. When oil was $147/barrel in the summer of 2008, it was also 80 degrees and no one was buying heating oil or propane. By the time the cold months came around that season the prices had come down. THIS year is in fact the most expensive on record, according to the Energy Information Administration, for heating oil with an average price of $3.34/gallon. Wood pellets provide significant savings over fossil fuels.

I am glad someone finally made this public with the facts. Thank you.

Corn to Pellets, another (messy) reason to switch

2011-01-03T11:39:00.002-05:00

We have a seen a big spike in corn prices this season, which was the best reason to burn wood pellets vs. corn this year. Another reason to move to pellets is the maintenance. I just got off the phone with one of our dealers who told me stories of how hard it is to maintain a multi-fuel stove that has been burning only corn. The starch and sugars natural to corn build up faster and are much harder to remove than the residue left behind when burning pellets.

Corn is more expensive, less efficient and harder to maintain. Strike three, pellets win.

Energy Prices Rising

2011-01-03T09:27:00.003-05:00

It seems impossible to avoid these days, one article or news report after another talking about higher energy prices for everyone in 2011. Growing global demand for oil and other fuels are driving the increase. Everything from food prices to gas at the pump will be effected. Heating oil and propane will also see upward movement, we may see $3.50/gallon before the heating season is over. If you are a wood pellet consumer you will be in the right position to keep heating costs manageable in 2011.

We're heading back to $100

2010-11-09T15:40:00.002-05:00

The Wall St Journal reported yesterday that due to low inventories of diesel fuel in China (only 16 days compared to 36 days of inventory 6 months ago,) we should see a sustained rise in the price of oil. The Chinese will build up their reserves of diesel, putting upward pressure on the price of crude oil. Morgan Stanley is predicting a rise back to the $100/barrel level not seen since 2008. $100 crude oil means very expensive heating oil and propane, it's trading in the mid to high $80's today, up 6.7% just last week. We could be heading back toward another very bullish market for wood pellets over the next 12 months.

Wood Pellets vs. Corn

2010-11-01T09:41:00.002-04:00

So what's the deal with corn this year? Prices are higher compared to last year, typically about $215/ton. How does this compare with wood pellets?

The following is a comparison, based on dollars spent per British Thermal Unit (BTU), of wood pellets vs. corn.

At a pre-season price of $189 (found in Southwest MI) per ton of wood pellets, it costs the consumer $13.57 per million Btu. How did I arrive at this calculation? Assuming wood pellets produce ~8,000 Btu per lb and the typical pellet stove is 87% efficient, then your net output is 6,960 Btu per lb. The total output per ton is therefore 13,920,000 Btu per ton of wood pellets.

$189/13,920,000 Btu * 1,000,000 = $13.57 per MBtu

At $215/ton of corn, it costs the consumer $17.60 per million Btu. Assuming that one ton of corn produces 14,000,000 Btu and a corn stove are 87% efficient, therefore the net output per ton is 12,180,000 Btu. (corn produces 7,000 Btu/lb. assuming 15% moisture, which is typical.)

$215/12,180,000 Btu * 1,000,000 = $17.60 per MBtu

$13.57 per million Btu for wood pellets vs. $17.60 per million Btu for corn represents a 23% discount on wood pellets vs. corn.

Pellets vs. Propane

2010-10-24T20:26:00.003-04:00

I originally posted a similar entry in my blog in May 2009 and it has been the most popular topic since then, representing 35% of the hits I have received on this blog. I decided to update it because since May of 2009 wood pellets have decreased in price while propane has only increased in price on a steady basis.

The purpose of this posting is to offer a comparison, based on dollars spent per British Thermal Unit (BTU), of wood pellets vs. propane.

At a pre-season price of $189 (found in Southwest MI) per ton of wood pellets, it costs the consumer $13.57 per million Btu. How did I arrive at this calculation? Assuming wood pellets produce ~8,000 Btu per lb and the typical pellet stove is 87% efficient, then your net output is 6,960 Btu per lb. The total output per ton is therefore 13,920,000 Btu per ton of wood pellets.
$189/13,920,000 Btu * 1,000,000 = $13.57 per MBtu.

At $1.89/gallon of propane (recent pre buy price I was quoted by a dealer in Southwest Michigan,) it costs the consumer $22.49 per million Btu. Assuming that one gallon of propane produces 91,330 Btu and assumes that propane furnaces are 92% efficient, therefore the net output per gallon is 84,023 Btu per gallon.

$1.89/84,023 Btu * 1,000,000 = $22.49.50 per MBtu

$13.57 per million Btu for wood pellets vs. $22.49 per million Btu for propane represents a 40% discount on wood pellets vs. propane.

With crude nearly reaching $83 per barrel last week, one can only predict one direction for the price of propane and every other fossil fuel, up! Also, you can feel better about using wood pellets because they are carbon neutral and keep your money here in the states!

Let me know what you think! - jmoran@wspellets.com

Higher Costs for Home Heating

2010-10-23T20:30:00.004-04:00

Since crude oil has rebounded over the last year, higher costs for heating oil and natural gas this winter should come as no surprise. Seems like a perfect year to feel good about your pellet stove or a great opportunity to go out and buy one. The Boston Globe published this article (click the link above) this morning. Remember, you can still take advantage of a 30% savings, up to $1,500, for the purchase of a wood pellet stove until the end of this year.

Home Energy Audit

2010-10-18T12:22:00.002-04:00

Here in Massachusetts there is an organization called MassSave which is an initiative sponsored by Massachusetts’ gas and electric utilities and energy efficiency service providers to provide home owners and business owners with free energy audits. I recently contacted MassSave to request a complimentary audit. A representative from Conservation Services Group, an energy audit subcontractor, subsequently visited my home. It was an extremely useful exercise that provided me with several ideas on how to conserve electrical and thermal energy in my home. He also replaced several light bulbs, free of charge, which was calculated to save me nearly $300 annually. The utilities in Massachusetts also provide rebate programs for the installation of insulation and other conservation ideas. The auditor was amazed to see how little natural gas I use, until he realized I was a wood pellet consumer.

An energy audit is a great way to find out how to conserve energy, regardless of how you create it.

High Corn Prices

2010-10-16T09:36:00.002-04:00

High corn prices will drive greater demand for wood pellets this season. The dry summer gave us a lower yield for corn. The USDA reports that, “Corn production is forecast 496m bushels lower as a 258,000-acre increase in harvested area is more than offset by a 6.7-bushel-per-acre reduction in yield.”

With lower pellet prices compared to last season, we should see a repeat of two years ago when thousands of households moved away from burning corn to heat their homes, to burning premium grade wood pellets.

First Lite

2010-10-11T10:09:00.003-04:00

The temps dipped down a few times over the last week or so, we cranked up the pellet stove to take the chill off. Our Harman is running great after a fresh cleaning by my friends at Commonwealth Fireplace of Norwood, MA. Looking forward to year four of pelleting.

This is a new one

2010-09-13T08:39:00.003-04:00

I have been in the wood pellet business for three years and if I had a dollar for every person who asked me if you could burn pellets in a regular wood stove, I would be a rich man. Well it turns out a contributor to eHow.com has posted some instructions on how to do just this. I can't endorse it, but it certainly sounds interesting and could be a boost for our industry if it can work safely. Click on link above.

Wood Bioenergy Magazine Article

2010-08-06T10:23:00.002-04:00

Michigan Wood Pellet Fuel was recently featured in an industry periodical called Wood BioEnergy Magazine. We thank Jennifer and her team for a great article!

www.woodbioenergymagazine.com

Let's talk quality

2010-08-06T10:05:00.005-04:00

Pellet consumers are concerned about a few things when they buy their fuel: how much heat do they produce, how much ash is left over and how much dust is in the bag. These quality metrics are followed closely by the industry and the Pellet Fuel Institute sets the standards for grading fuel. A premium grade pellet has less then 1% ash and less than .05% fines and while the PFI does not set a Btu/lb standard, a high grade pellet should give off ~8,000 Btu/lb.

Michigan Wood Pellet Fuel continually tests its pellets at the plant. We also send them to an accredited third party testing facility to independently audit our work. Our pellets meet or exceed the standards set forth by the PFI as being premium grade.

Write me back with any questions, concerns or feedback. If you want to receive one of our independent test results, send us an email at info@mipellets.com.

Man is it hot out!

2010-07-22T17:30:00.004-04:00

This summer has been hot, blazing hot. If memory serves me correctly, unusually hot summers are typically followed by unseasonably cold winters. Last year propane and heating oil were way down, coupled with a mild start to the winter. This brought the pellet market back down to earth following the 2008 season. This year, pellet prices are lower, propane and heating oil are higher and I am predicting a COLD winter. Best to stock up now before everyone needs their pellets at the same time when the first frost hits in a few months. It's hard to think about frost when it's over 90 degrees outside, but it's best to plan ahead when it comes to keeping your family warm and comfortable.

April 22 is Earth Day

2010-04-22T07:46:00.003-04:00

One of the core issues that the Earth Day Action Center lobbies for is climate change. Carbon dioxide is the second most abundant greenhouse gas in our atmosphere and is considered to be the biggest culprit to climate change.

If you burn pellets, everyday is Earth Day at your house. The average consumer burns 3.5 tons of wood pellets per heating season. If you are replacing fuel oil, you are saving the earth from absorbing approximately another 9,500 lbs of CO2. If you are replacing propane you are saving the earth from absorbing about 7,500 lbs of CO2 per year.

Heating Oil and Propane are back up

2010-04-21T09:10:00.004-04:00

The US Department of Energy closely tracks the retail cost of all petroleum products, including Propane and Heating Oil. With crude oil prices back up, I thought it might be interesting to graphically display what prices have done since we saw record high prices back in 2008.

The following graph displays the average price of propane since the beginning of 2008 in the state of Michigan.

This next graph displays the average price of heating oil since the beginning of 2008 in New England.

Although we are glad to not see crude oil at $137 per barrel, it has climbed considerably since the global economy has begun to turn around, showing support well above $80 per barrel. As a result, it will be considerably more expensive to heat your home next season than it was this past season if heating oil or propane is your primary heating fuel.

Pellets are readily available throughout the country and prices are attractive.

On the fence?

2010-01-11T08:51:00.003-05:00

The time to buy a pellet stove is now. Here is why.

I get a lot of questions from various people about the wood pellet market, especially when oil prices are on the rise, as they are right now. There are a lot of people who chose not to invest in a pellet stove this past year because oil prices fell off the map when we entered the financial crisis and subsequent recession. Now that our economy is showing signs of strength the commodity markets are rallying, including the price of crude oil. When crude oil rises, the cost to heat your home, regardless of your fuel type, also goes up.

There are two schools of thought concerning what will happen to the price of oil as we continue to exit this recession:

1.) The US interest rate can not get any lower, therefore to stave off possible inflation the US will begin to raise interest rates at some point soon. Since the price of oil is backed in US dollars, as the dollar becomes more expensive (because we raise rates) the price of oil will subsequently stabilize or go down.

2.) Even when the US raises its interest rates, the price of oil will not relax. Why? The recession we are exiting was global in nature and many developed nations are seeing better signs of recover earlier than the US. "China, Australia, Germany and Japan are all growing again." (wsj.com 1/7/10) When an economy strengthens, its demand for oil increases. It just so happens that the largest economies across the globe are strengthening at the same time.

I subscribe to the second one!

So what does this have to do with buying a pellet stove? $3.00/gallon of heating oil is right around the corner, so is $2.50/gallon for propane. At those levels, here is a quick comparison of pellets vs. heating oil and propane in terms of $/MBtu:

$2.50/gallon of propane translates to $29.70/MBtu
$3.00/gallon of heating oil translates to $21.60/MBtu
$250/ton of pellets translates to $17.90/MBtu

Therefore, it is VERY reasonable to assume that pellets will be, on average, 20% cheaper than heating oil and 40% cheaper than propane!

Net net, go buy a pellet stove. If you already own one, feel good about it, now go tell your friends and family to buy one too.

It's COLD!

2010-01-11T08:42:00.003-05:00

I guess it's pretty useless to state the obvious, but no one can hide from the current temperatures. Orange juice will be very expensive next year.

I had a 5 bag of pellets weekend at my house. Many of you will think that isn't that much considering the temperatures, but I only have a 40,000 Btu pellet stove insert. I typically use one bag per day at most, but this weekend it was almost two per day.

Share your own story by posting a reply.

Logistics Just Got Better!

2009-12-01T07:50:00.005-05:00

Michigan Wood Pellet Fuel can now offer 100 ton train cars of wood pellets. Previously, we were only able to provide 95 tons per car. Now that we have a new load pattern for one ton units, we can stuff 100 units into a 60' high cube rail car. We stack the units three high in the car, where before we stacked 1.4 ton units two high. Many of our customers would rather stock the one ton units and many consumers find it easier to buy one ton units. Let us know if can provide you a quote to your destination. These photos were taken after the car traveled 850+ miles, not one torn bag!

Sign up for email updates

2009-11-23T15:37:00.002-05:00

In the lower left hand corner of the Contact Us page on our website you can sign up to receive our upcoming email updates. You can chose to receive information relevant to consumers or a dealers. Please sign up today!

WZZM Spot

2009-10-30T09:26:00.002-04:00

Our good friend Jon Mills from WZZM Channel 13 in Grand Rapids returned to Michigan Wood Pellet Fuel for a follow-up story on the success we have enjoyed over the last year. Click on the link above to read his story and view the news clip. Thanks Jon, see you next year.

Upcoming Project

2009-10-29T13:27:00.004-04:00

Michigan Wood Pellet Fuel is conducting a project next week which will allow us to increase production by as much as 15 - 20%. This should get us very close to producing up to the plant's production capacity. We are shutting down for a few days but we have built up inventory in anticipation of the project so shipments will continue to roll.

Oil is climbing again

2009-10-21T12:40:00.003-04:00

Crude oil is climbing back to levels considered very high by historical standards. Check out 321energy.com to get the latest quote on crude. As we all know fuel oil, propane and eventually natural gas will follow this upward trend in price.

Production is cranking

2009-08-05T15:30:00.003-04:00

Michigan Wood Pellet Fuel has more than doubled its production over last year. We are adding dealers throughout Michigan and in several other states across the region. Please find the closest dealer to you by clicking on the title of this posting.

IRS issues guidance on biomass stove tax credit

2009-06-15T15:59:00.002-04:00

On Monday, June 1, the Internal Revenue Service issued its guidance for the consumer tax credit for the purchase and installation of efficient biomass-burning stoves. This tax credit is for 30% (up to $1,500) of the cost of a biomass-burning stove that is at least 75% efficient.

Flickr Account

2009-06-15T15:56:00.004-04:00

I opened up an account on Flickr to post photos to.

Wood yard project

2009-05-18T15:46:00.008-04:00

Over the last couple of days, Michigan Wood Pellet Fuel has been shut down so we could expand the capacity of the wood yard. The wood yard is where we store all of our wood chips and processed wood chips before they are pelletized. Expanding the wood yard will allow us to accept more chips during the week and allow for better wood sorting. This should allow us to increase production marginally. The project involved pouring a new slab of thick cement and moving our primary hammer mill across the property.

We hope to execute another project later in the summer which will greatly increase production. Stay tuned.

Pellets vs. Propane

2009-05-12T14:35:00.013-04:00

Over the last several weeks I have heard from many of our wood pellet dealers that consumers are holding off on taking advantage of early buy offers for pellets due to the fact that propane continues to drop in price. It is true; propane has come down significantly over the last several months, compared to the high prices we witnessed last year.

The purpose of this posting is to offer a comparison, based on dollars spent per British Thermal Unit (BTU), of wood pellets vs. propane.

At a pre-season price of $225 per ton of wood pellets (I have seen them cheaper recently,) it costs the consumer $16.80 per million Btu. How did I arrive at this calculation? Assuming wood pellets produce ~8,000 Btu per lb and the typical pellet stove is 87% efficient, then your net output is 6,960 Btu per lb. The total output per ton is therefore 13,920,000 Btu per ton of wood pellets.

$225/13,920,000 Btu * 1,000,000 = $16.10 per MBtu

At $1.64/gallon of propane (recent pre buy price I was quoted by a dealer in Southwest Michigan,) it costs the consumer $19.50 per million Btu. Assuming that one gallon of propane produces 91,330 Btu and assumes that propane furnaces are 92% efficient, therefore the net output per gallon is 84,023 Btu per gallon.

$1.64/84,023 Btu * 1,000,000 = $19.50 per MBtu

$16.80 per million Btu for wood pellets vs. $19.50 per million Btu for propane represents a 17%+ discount on wood pellets vs. propane.

With crude nearly reaching $60 per barrel today, one can only predict one direction for the price of propane and every other fossil fuel, up! Also, you can feel better about using wood pellets because they are carbon neutral and keep your money here in the states!

Let me know what you think! - jmoran@wspellets.com

This particular posting was written to our audience of dealers and consumers located within a 200 mile radius of our pant in Holland, MI.

Pellet Stove Demand in '08

2009-04-06T13:53:00.002-04:00

I recently had the opportunity to attend the Hearth Patio & BBQ Association Expo in Reno, NV. I learned that 2008 was a banner year for pellet appliances, shipments increased by 161% over 2007 shipments. This should result in close to 500,000 tons of new demand for wood pellets.

Get your orders in soon.

New Season

2009-04-03T09:37:00.002-04:00

The 2009/2010 season is upon us, believe it or not. Pellets are already arriving at many of our dealers. No one wants to feel the crunch that we felt last summer, so consumers and therefore dealers, are already securing their fuel.

We have added several new dealers throughout the region. Please visit www.michiganwoodpellets.com and click on the dealer locator button along the navigation bar.

This summer we hope to further increase production. We have the opportunity to increase production by 20%. Stay tuned.

Big News

2009-02-19T09:28:00.003-05:00

As part of the recently signed federal government stimulus package, our industry has scored a huge win! A consumer tax credit, of up to $1,500, will be provided for the purchase of a 75% efficient biomass burning stove in 2009 and 2010. Click on the link above to learn more about what it means. A big thank you should go out to the Pellet Fuel Institute and our industry leaders who helped make this happen.

Winding down

2009-02-16T10:22:00.002-05:00

The '08/'09 heating season is beginning to wind down, but demand is still quite strong. We will be heading into the off-season with a list of over 70 wholesale customers and hundreds of consumers who burn Michigan Wood Pellet Fuel throughout the Midwest and Northeast. The '09/'10 heating season looks very bright as we plan to further increase capacity, up to the plant's 50,000 ton capacity.

Thank you for a great season!

Safety First

2008-12-04T06:40:00.002-05:00

Our son is 16 months old and is into everything, as all little guys are. At the beginning of this heating season we installed the KidCo Hearth Gate. Cullen has long arms for his age, so we also installed some plexi glass so he can't reach through. The gate installed quickly and can be removed easily when spring comes.

Daves ESL BioFuel

2008-11-17T17:40:00.002-05:00

This is a really interesting site/blog (of sorts) concerning the world's energy (oil) supply. Dave does a great job of breaking things down so the average person (like me) can understand the situation we are all in. Oil has fallen dramatically as a result of our poor economy, but if you begin to understand that the world's oil supply has peaked you will feel a lot better about your pellet stove.

Progress!

2008-11-04T16:32:00.002-05:00

I am pleased to announce that Michigan Wood Pellet Fuel is setting production and sales records on a weekly basis. We are doing our best to get as much fuel into the marketplace as soon as possible. We have not oversold out production. We have not missed a scheduled delivery to any of our dealers. If your dealer tells you that they have a truck scheduled for delivery in two weeks, please feel confident that the truck will arrive!

Fuel Availability

2008-10-07T11:47:00.003-04:00

I have recently heard lots of stories, throughout the region surrounding our pellet plant, concerning the lack of pellet fuel available to consumers. Please know that we are doing our best to get as much pellet fuel into the marketplace as possible. This week we began running 24 hours per day, Monday - Friday, then 18 hours on Saturday. We are also going to schedule a capital improvement project for Mid December, this should increase production even further.

We have made strong commitments to our current roster of retail customers and we continue to add new dealers, almost on a weekly basis. Our customers will continue to receive pellet fuel throughout the heating season, all the way into late March.

If you have exhausted EVERY possible avenue and still can not find pellet fuel and you live in Michigan, email me and I will do my best to get your local dealer an extra truck load to satisfy your needs. Send me an email at jmoran@wspellets.com

Thank you.

Justin

Michigan Wood Pellet Fuel on TV

2008-09-26T11:57:00.003-04:00

Thank you to Jon Mills from WZZM Channel 13 of Grand Rapids. Jon did a great news spot on Michigan Wood Pellet Fuel and a local stove shop. Click on the title of this posting to view the TV spot.

Good Press

2008-09-08T15:28:00.005-04:00

A big thank you goes out to The Grand Rapids Press for writing a great article about the wood pellet industry and how Michigan Wood Pellet Fuel is helping to fulfill the increased demand here in the 2008/2009 heating season.

Click on the title of this posting to read the article

The US Energy Market

2008-07-29T13:52:00.000-04:00

I just found a great RSS feed that I think everyone should at least have a look at. It is published by the DOE's Energy Information Administration. Copy and paste the URL below into a browser.

feed://tonto.eia.doe.gov/energy_in_brief/eibinfo.cfm

Demand has spiked!

2008-07-16T10:51:00.001-04:00

Crude oil is hovering around $135 a barrel.

Pellet stove sales are very strong.

Corn prices are at an all time high.

Natural Gas and Propane prices are high.

These are just some of the reasons why we have experienced a huge spike in demand for wood pellets. We are increasing production and will soon be running a three shift system in order to meet the increased demand.

Let me know if you are having trouble locating our product in your community. I will do my best to sign up a dealer to serve you.

Wood Pellets vs. Natural Gas

2008-05-05T11:21:00.001-04:00

In September of 2006 my wife and I purchased a three bedroom, 1750 sq ft, home in Massachusetts. The house was built in 1932 and we are only its third owners. It came with the original windows and storm windows that needed lots of repair. Some were in poor working order and others were very drafty. We decided to replace each window over the last 18 months. The winter of 2006/2007 was quite mild but we still used plenty of natural gas for our primary heating system, a furnace that was installed about 30 years ago. In September of 2007 we decided to buy a pellet stove insert for our fireplace. We purchased a Harman Accentra Fireplace Insert.

The following table represents the number of therms we consumed in 2006/2007 vs. 2007/2008. I suspect we would have used at least 20% more therms in 2007/2008, considering the length and severity of the winter. 1,520 vs. 334, quite a difference!

My carbon footprint was reduced by 13,876 lbs of CO2! (assumes a 11.7 lbs of CO2 per therm of natural gas)

It is hard to calculate my overall cost savings because it is impossible to know how many therms of natural gas I would have needed. However, I only spent $1,100 on wood pellets this year. I suspect my savings was around $1,500, perhaps more!

Quality

2008-03-31T17:38:00.000-04:00

We are committed to making only premium grade pellets at Michigan Wood Pellet Fuel. We have raised our acceptance standards of raw material and now only accept the finest hardwood chips the market will deliver. Our pellets are tested by the one of the most respected independent wood pellet testing labs in the country, please contact me for a certified analysis.

Justin Moran

jmoran@wspellets.com