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Pellet stoves efficient, but becoming scarce

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By MICHAEL COUSINEAU AND SHAWNE WICKHAM
New Hampshire Sunday News

If you've been thinking of buying firewood or a wood-pellet stove to help heat your home this winter, don't procrastinate.

Even if you order now, you could wait months for delivery.

The energy crisis has pushed many in New Hampshire to seek alternative heating sources, and wood-pellet stoves are a popular choice.

"I have tractor-trailers coming in all the time, loaded with stoves, but they're already sold," said Dave Yakuboff, a dealer at All Basics Stove Shop in Merrimack. "I've been doing this 25 years, and I've never seen it like this before."

Some stores are reporting that customers might not receive their stoves until as late as January.

Meanwhile, demand for firewood to feed wood-burning stoves also has shot way up -- even with prices at record levels. Prices are up 50 percent or more, but wood is still a better investment compared to oil, according to Jon Nute, the Hillsborough County forester.

A cord of dry wood ready to burn is selling for $300 or more, but produces the same energy as 200 gallons of heating oil, which would cost more than $900, he said.

Bob Sundstrom said he's booking firewood orders to be delivered 10 to 12 weeks out, partly because the Milford wood dealer is having a difficult time getting enough supply.

Pellet boom

Chris Smith, a salesman at Abundant Life Wood & Gas Stoves in Chichester, said pellet-stove sales this year were projected to increase by a healthy 30 percent. Instead, "there's been an over 400 percent increase," he said. "It's been crazy."

Pellet-stove manufacturers, Smith said, were caught by surprise at the surge in demand, and are now working to increase their production. He's advising customers that if they buy now, they may not get their stoves until January, although he's hoping the suppliers will catch up before then.

Last year, Smith said, his store sold 150 pellet stoves. Already this year, they've sold about 400.

And it's not just folks in New Hampshire looking for heating alternatives. "I got a call from Pennsylvania the other day looking for pellet stoves," he said.

Smith's advice: "Even if (stores) are backlogged, come in early, because it's just going to get further out."

Comparing efficiency

Comparing fuel types, it takes around four tons of wood pellets to heat a 2,000 square-foot home for a year, or less than $1,200 before delivery.

An average home in New Hampshire uses between 800 and 1,000 gallons of home heating oil. So at $4.699 a gallon, a price quoted by one oil dealer last week, a home owner would face an oil bill of $3,800 to $4,700 -- and naturally more for those paying a higher per-gallon price.

Those burning firewood could use four to five cords a year. Using $325 for a cord price, that would mean $1,300 to $1,625, plus delivery in some cases.

People looking to fuel those pellet stoves apparently has also caused what dealers hope is only a temporary shortage of wood pellets.

Keeping up with demand

Charlie Niebling is general manager of New England Wood Pellet LLC in Jaffrey, currently the only pellet manufacturer in New Hampshire. He explained what's behind the shortage.

71308PELLETS_275px (CHERYL SENTER/UNION LEADER)
Pellets used for wood-pellet stoves are shown at Abundant Life Wood & Gas Stoves in Chichester. (CHERYL SENTER/UNION LEADER)

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"The last couple months, there's been just a tremendous increase in demand for pellet fuel, and it came all at once."

In a "normal" year, Niebling said, about one-quarter of pellet customers buy their annual supplies in the spring, when prices tend to be lower. "This year, for whatever reason, everybody decided to purchase their pellets in the spring. And neither we nor any manufacturer can keep up with the tremendous spike in demand over the last several months.

"And certainly the panic over oil prices and how people are going to afford to stay warm this winter is a major driver in what's going on right now."

Niebling likened the situation to "a run on the bank." But, he said, his company and other pellet manufacturers are catching up.

"The market is responding, and there are various proposals for new pellet plants in the region, including one in Berlin," he said. Come fall, there should be abundant supplies in the region."

Hot stoves

A Goffstown pellet supplier, Pelletsales.com, expects to sell five times as many pellets this year as last, according to President and CEO Jon Strimling.

"I think what's driving sales is people are getting their home heating bills," Strimling said. "People are getting concerned about the environment and want to do the right thing, especially if it can save them some money."

Strimling is selling pellets for $269 to $279 a ton now, about $10 more than at this time last year but $60 to $70 more than in March, when prices had dropped. Home delivery will run about $35 a ton.

Raymond Fire Chief Kevin Pratt said that he is receiving "lots of calls" each day from residents who have recently installed new pellet stoves or are thinking about getting their old wood-burning stoves going again.

Pratt said the situation mirrors the economic downturn of about 20 years ago, when residents started looking at ways to save money in the face of a similar poor housing market.

Stores are reporting brisk sales.

At Fireplace Village in Bedford, customers won't receive their stoves until October.

June sales are up close to 500 percent compared to the previous June, and 90 percent of customers are inquiring about the pellet stoves or inserts for their fireplaces, according to store manager Jeff Taylor.

In Nashua, Al Carachio of Pellet King said he sold 100 stoves last month -- 10 times the number for a typical June.

"The demand is just enormous," he said. "I've never seen anything like this at this time of the year," Carachio said.

Correspondent Toby Henry contributed to this report.

YOUR COMMENTS


In response to Jon Strimling's post, I have already longed onto www.PelletSales.com and they do not ship to upstate NY. I am unable to find any dealer in our area that has any wood pellets. We are seniors and our only heat is a pellet stove. We don't know what we are going to do. We were unaware of this shortage until yesterday when I called for prices where we purchased last May. Any help would be appreciated. Thank you,
Mrs. Walker
Livonia, NY 14487
- M Walker, Livonia, NY

the recent comment by Bill Barling is from me Bill Darling; typo in name given above
- Bill Darling, Wingam Ontario Canada

same situation here in Canada; we manufacture stoves/furnaces/boilers that burn grains (corn, wheat, rye ) and wood pellets; debating right now whether to add another shift to keep up with demand; trying to keep lead times under 8 weeks,as we want to sell before the heating season is over; if shift added, will increase capcity by 25% ( 12 furnaces or 20 stoves per day)
- Bill Barling, Wingham Ontario Canada

R In Raymond, & Frank in Manchester
I agree with you 100% check the warranty please that's where it will tell you to contact the dealer you bought it from i have sold a lot of stove's and everyone is the same. The manufacturer wont deal direct for MOST problems with the customer. I personally do not care if you buy a pellet stove or wood stove or a gas but i do know that if you burn oil you will be visiting a hearth store at least for info and prices. PS... it is buyer beware for some models read rating reports and blogs from people who have burned the stoves before then you will know the truth. As for installing Know your local codes or pay someone to do it right. There are many installing companies not just chimney sweeps i give out cards for a few myself with over 10 yrs experience installing hearth products...
Again keep warm this winter
- KAV, Manchester

In response to KAV's comments, don't believe the hype. Many chimney sweeps are licensed (and far cheaper) for stove installation than the stove shops in the area. Also, getting a recommendation from an installer over a seller on a stove that will better suit your needs can also save you a lot of money, as it did for me.
- Frank, Manchester

KAV, they need to check the quality and warranty of the unit, too. Have seen some that weren't put together very well which will cost owners more in the long run.
- R, Raymond

Help, Help! Where is Nanzy Pelosi and Harry Reid to blame Republicans and Big Stove for the shortage. They need to hold hearings on 'stove speculators'! We need a union-sponsored ad for Shaheen blaming everything on John Sununu! Oh, wait. You mean this is how free markets work? Something about supply and demand sometimes are out of balance? Not evil speculators? Oh well, that doesn't make for good political 'theater'...
- Gene Smith, Contoocook, NH

I work for Fireplace Village i can tell you that we do still have stoves on order not committed yet. I will give everyone a warning that who ever you buy the stove from no matter the make try to get it locally, If you have any problems with the unit you do need to go back to the dealer you bought the stove from. If it is from another state you could have problems getting service from anyone local. Just a heads up from someone who has been selling stoves a long time. If you buy online good luck to you finding anyone to touch your stove for any reason hookup or repair. Keep warm this winter
- KAV, Manchester

This article is dead on with what I've been experiencing. I wanted to buy a Hampton pellet stove but everywhere I go I'm told they can't get one to me until December at the earliest. So now I'm looking at other units on the market that are a bit pricier.

I was given a number for a guy in Vermont that sells Ecoteck pellet stoves http://www.ecoteck.us/ and he told me they are delivering units in September.

So maybe that's a new trend as well. Buy cheap and wait till the heating season is almost over, or guy expensive and get it now. I really don't know what I should.
- Charles Watson, Plymouth NH

In addition to working with local sources such as New England Wood Pellet to meet mounting demand, we are also working with producers all over the US and Canada to move pellets to areas where they are needed, such as NH.

Product is available for delivery and can be ordered online at www.PelletSales.com.

Jon Strimling
President
- Jon Strimling, Goffstown NH

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