Wood Pellet Sales Remain Red Hot

New Hampshire is one of the most oil-dependent states in the country, making it a prime breeding ground for businesses offering affordable, renewable energy sources. So it's little surprise that the state is home to wood pellet heat companies that have been experiencing dramatic growth in recent years.

While a small pellet-heat industry existed as far back as the 1930s, according to the U.S. Department of Agriculture, North American wood pellet production increased by more than 450 percent between 2003
and 2009.

Both woodpellets.com in Goffstown and New England Wood Pellet in Jaffrey have been reaping the rewards for demand for alternative fuel. Woodpellets.com was founded in 2006 to sell and distribute wood pellets, mostly to homeowners heating with wood pellet stoves. Business has increased 20 times since its founding and woodpellets.com  now employs more than 35 people and delivers wood pellets across the Northeast from Maryland to Maine.

President and CEO Jon Strimling worked in the pellet fuel industry before founding the business. His company can deliver pellets in 40-pound bags, on pallets or as loose bulk pellets to customers with a silo or other bulk storage option. We've grown every year and we continue to attract more customers to our business, Strimling says. Consumers typically displace 70 to 90 percent of oil or propane use, he says of switching to wood pellets. One attraction, Strimling says, is that pellet stoves have near complete combustion. They do need to  be vented, though a sidewall is fine and they require little cleaning, as ash content is about 0.3 percent.

While selling pellets has been good business for woodpellets.com, New England Wood Pellets has done well manufacturing them. The company recently opened a $14.5 million manufacturing plant in Deposit, New York. That is in addition to plants in Jaffrey and in Schuyler, New York. General Manager Charlie Niebling says the company had been growing 30 percent year over year, and though 2010 was flat, things have started to rebound this year. Niebling says most of their product goes to homeowners, though there is a growing interest in central heating systems fueled by wood pellets. New Hampshire, he says, is trying to encourage that with a 30 percent rebate on wood pellet boilers and furnaces up to $6,000. We're pretty optimistic if oil and propane prices keep trending the way they are, we will continue slow but steady fuel switching from fossil fuels to alternatives like wood pellets, he says.

For more information visit newenglandwoodpellet.com and woodpellets.com.