10 Questions for . . . Jon Strimling, President of WoodPellets.com

In this installment of 10 Questions for . . ., Associate Editor Gian Trotta speaks with Jon Strimling, president of WoodPellets.com about the pellet market. Strimling also addresses some of our readers' concerns about wood pellets and their delivery.

Last year there were reports of pellet shortages. What are the prospects for pellet supplies this winter?
We're clearly in a better position now at the macro level than we were last year, when oil prices shot through the roof in May, June, and July and caused a run on pellet supplies. The industry usually has until November to provide enough fuel for a winter season, but last year many people saw prices going up and thought that they should get their pellets early.

The sudden surge in demand was challenging, and there were times last year when one coast or another would go into back order. But the country has never been short of supply; it was just a case of the product sitting in the wrong place. We were able to keep a flow, but pellets were traveling farther and cost of transport was higher.

A fair bit of additional capacity has also become available. Over past few years 20 new mills have started producing pellets in U.S. and Canada, and new capacity has been added to existing plants. This year, a major boost to raw-material supplies consists of lodgepole pines in Colorado and British Columbia. Because of beetle infestations in recent years, there is an enormous quality of dead standing timber being removed for forest-fire mitigation, and the highest-value use of that resource is pellets.

Will all those factors offset the reduction in pellet raw materials from lumber and wood-flooring production?
Certainly, housing starts are down, and that has reduced capacity of some mills that rely on that stream of dry residual wood. But most of the newer mills can employ "green chips" that enable them to continue to produce premium pellets, and in some cases even superpremium pellets. These clean, debarked chips are cut before wood is dried, for example from the lumber cut from side of logs to square them.

How vulnerable are pellet-producing plants to supply interruptions?
Fortunately, production is dispersed among several areas and companies to reduce chance of shortages. Individual pellet-supply facilities can go down, especially if they are linked to a particular lumber mill. The network of 80 to 100 plants is as a whole pretty robust, so if someone goes down, someone else will pick up that volume.

One of our readers noted that when he began using pellets five years ago, pellets were $110 a ton, now he's paying $265. What is your long-term forecast for pellet prices?
It may be that this consumer got a very unusual deal in 2005 through some sort of a clearance event, because that price is much lower than even typical wholesale pricing was in 2005. If you look at when we started this business in 2006, our retail price was right about what it is now. In 2008, pricing went up about 10 percent.

If you go back five to 10 years ago when crude was cheaper, pellets cost less. Wood and pellets are typically moved by trucks that use diesel fuel, which has gone up since then; so there's no avoiding that pellet prices will rise as oil rises, as diesel fuel is an element of pellets' cost. Normally, when the price of oil doubles, it results in an increase in transportation costs for pellets of about 25 percent.

How do sales of pellet-burning appliances affect your demand forecast?
Last year, sales of pellet-burning appliances were up 180 percent. We won't see sales like that repeat this year—probably not until the next spike in oil pricing. But every heating system sold creates an incremental increase in demand, and people who have systems are continuing to use them, even with oil at lower price levels.

What we're seeing this year is that demand for pellets is coming later. There hasn't been mad rush to go out and buy supply, so we're seeing a later buying season with strong demand. There's not a feeling of panic of everyone this year like last year with the continued growth in the industry. Folks with stoves and inserts are telling friends to go out and buy a pellet-burning stove.

What's the difference between premium and superpremium pellets?
The Pellet Fuel Institute just released a new standard for superpremium pellets and is working out the statistical data around the new methodology. Ash level is a major distinction. Premium has a maximum of 1 percent ash content while superpremium has less than one-half of one percent. That's a big deal to a stove owner because you're cleaning your stove half as often.

Other things tested by the PFI include Btu content, length and diameter of the pellets, and durability. The heating value and ash level are of primary interest to a consumer. The range of variation for the heating value can be 10 percent, but ash level can vary by a factor of three. Moisture level is inversely proportional to heating performance also.

Pellet stoves are a hot topic with consumers

As high energy prices and federal tax incentives continue to spur interest in pellet stoves, the number of online discussions about these appliances seems to be on the rise. Among the topics of interest to potential buyers and seasoned users are which pellets to buy, their proper storage and cleanup, and even possible pellet shortages during peak heating season. The Napoleon NPS40 stove, $2,350, is shown.

You'll be happy to learn that the "supply of pellets stoves and fuel is good," according to Leslie G. Wheeler, director of communications for the Hearth, Patio & Barbecue Association.

The HPBA advises that you keep pellets dry and not handle them more than necessary, since they can breakup into smaller pieces. Also note that wood pellets in 40-pound bags are easier to store, keep dry, and tote to a stove than loose pellets, which require some sort of large bin.

Storage area can definitely be a concern with wood pellets. "You need some space to store the pellets; I have 4 tons in my basement," says John McAloon, a project leader in the Consumer Reports Technical Division. McAloon schleps the 40-pound bags of pellets into his basement by himself, but innovative bulk-delivery systems could become a more-attractive alternative.

As for water damage, "I've had water get into one or two bags stacked near the bottom of the pallet, but it ruined only a small amount of pellets," McAloon adds.

The HPBA suggests that you burn only grades of pellet recommended by the manufacturer of the stove and clean your stove(s) at least once a week regardless of which grade of pellet you burn.

"The stove requires some cleaning, but I haven't had problems with dust, and the pellets do burn pretty efficiently. Each week, after burning 300 to 400 pounds of pellets, I might find just a few clinkers—large ash deposits,"  says McAloon.

Two manufacturers whose pellet stoves were tested four our recent report—Harman Home Heating and England's Stove Works—offer valuable safety and troubleshooting advice on their Web sites.

Share your own tips or insights about using pellet stoves, which fuels to buy, and other subjects by leaving a comment below. Our future coverage will look at these burning topics.—Gian Trotta | e-mail | Twitter | Forums | Facebook

Essential Information: The October 2009 issue of Consumer Reports includes expert advice on ways to slash your energy bills, ratings of compact fluorescent lightbulbs, and coverage of solar water heaters (stories and ratings are available to subscribers). Look for more ways to save in our new Energy Saving & Green Living guide.

Forum Friday: Gas furnaces, pellet stoves, and solar water heaters

As another fall approaches, members are sharing more and more ways to reduce heating bills. Here are some forum postings related to the energy-saving features in our October 2009 issue.

Which gas furnace to buy? With 409 posts, this is the busiest discussion in our Heating and Cooling forum. The posters' real-world experiences with popular brands of gas furnaces like Rheem, Trane, American Standard, Ruud, and York can help you find an cost-effective, efficient and reliable model. We’ve also got buying advice, tips for choosing a contractor, and reliability ratings for top brands. And keep in mind that furnaces with an energy-efficiency rating above 90 qualify for a 30 percent federal tax credit.

Pros, cons, and costs of pellet-stoves. “We know that oil, propane and natural gas prices are going to continue to go up in the future with no end in sight, so maybe burning wood pellets or corn is the way to go,” one poster posited. Our just-published report and ratings on pellet stoves (and overview on all wood-burning stoves) details their acquisition and operating costs; we've also started a pellet-stove discussion where you can weigh in on the subject.

Solar water heater test update. “We have been looking at solar-assisted, gas-fired tankless, and other water heater designs in an attempt to cut down energy usage of all appliances that use heated water," wrote one contributor. We're happy to offer results to date of our testing of popular solar water heaters, which like pellet stoves, now have their own dedicated discussion.

Essential information: Our Energy Saving & Green Living guide has more information on the tactics, technologies, and tax incentives that can help cut your heating, cooling, electricity and water bills.

Q&A: When should I replace a carbon-monoxide alarm?

I've heard that carbon-monoxide alarms fail after seven years. Is that true?

Most carbon-monoxide (CO) alarms are backed by a five- to seven-year warranty, but they typically emit a chirping or signal when they're nearing the end of their useful life. This signal differs from the one that indicates a low battery. If there's a problem with the unit, a model with a digital display will show an error message, and one without a digital display might flash LEDs in a particular pattern.

Remember, the test button on a CO alarm checks only whether the alarm is working, not the sensor. To check the sensor, use a test kit that you can purchase at a local home center.

Essential information: Read our buyer's guide to CO and smoke alarms for more information on these important safety devices, and view a quick interactive to determine which alarms are best for your home. We've also got a report on an intriguing study on the effectiveness of a voice recordings versus more traditional loud tone alarms in awakening children.

European Union's energy-use rule spur American exports of wood pellets

The United States isn't an energy exporter—in fact, this country imported almost 9 million barrels of oil a day in May, according to the latest figures from the Energy Information Administration.

But as European utilities hustle to augment their coal-fired power plants with those that run on renewable fuel, American-made wood pellets have become a hot commodity. European imports of U.S. wood pellets were up 62 percent in the first quarter of 2009 from the same period a year ago, reported The Wall Street Journal. (Read our buyer's guide to wood- and pellet-burning stoves and watch for our report on pellet stoves in the October 2009 issue of Consumer Reports, online and on newsstands in late August.)

Driving the growth is a European Union rule that requires member countries to generate 20 percent of their electricity from renewable resources by 2020. The American Clean Energy and Security Actt, which passed the House last month, would set the same requirement for U.S. utilities. "We won't be shipping pellets overseas [if that happens]," says Steven Walker, development director of Phoenix Renewable Energy, which is about to break ground on a 250,000-ton-a-year pellet plant in Camden, Arkansas. "We'll be shipping them domestically."

Even without a new renewable-energy standard, sales of wood pellets should remain robust in this country. In 2008, 141,211 wood-pellet appliances shipped, up 161 percent from the previous year, according to the Hearth, Patio & Barbecue Association. That consumer demand has brought a lot of interest in and innovation to the industry, including a bulk-delivery system that eliminates the need for homeowners to haul pellets in 40-pound bags from the retailer to their stoves.

A lot of energy is used to get American pellets overseas, but it still doesn't offset the energy-saving benefits that pellets provide compared with burning coal.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Don't get ripped off when you buy firewood

If your supply of firewood is running low as we near the midpoint of winter, make sure it’s the logs that get burned after your next order. All kinds of firewood scams occur every winter, perpetrated by vendors who take advantage of homeowners whose only connection to a “cord” might be the one that supplies power to their appliances and electronic gear.

“Anyone with a pickup truck and a chain saw can call himself a firewood dealer,” warns John E. Meyer Jr., director of the Bureau of Weights and Measures for Oneida County, New York. For advice on buying firewood, read our tip of the day.

International Builders' Show Product Preview: Quadra-Fire Edge 60 Pellet-Burning Fireplace

Looking to stay warm without burning through piles of cash? We've offered lots of coverage, from basic tips to detailed reports on compact fluorescent lightbulbs, programmable thermostats, space heaters, tankless water heaters, and windows. Pellet- and wood-burning stoves have become extremely popular in recent years, and manufacturers have targeted consumers eager to lower their annual heating bills.

Quadra-Fire has introduced the Edge 60 pellet-burning fireplace, which it says can burn wood, grass, corn, or wheat pellets. Its hopper will hold 120 pounds of pellets, enough for about 7 days of operation, according to the manufacturer. It's equipped with a programmable thermostat that's designed to regulate heat output. Likewise, an automatic self-cleaning feature is supposed to relieve you of some maintenance chores. At $6,000 to $7,200 without installation, the Edge 60 is pricey for a supplemental heat source.

Look for our report and wood and pellet stoves next fall.—Celia Kuperszmid Lehrman

Popularity of pellet stoves drives delivery-system innovation

Sales of pellet stoves continue to sizzle. Through the first six months of 2008, shipments were up 135 percent over 2007, according to the Hearth, Patio & Barbecue Association.

As a result, in New England, where a majority of this country's estimated 800,000 operating pellet stoves have been sold, units are reportedly on back order into 2009. (To learn more about this equipment, read our buyer's guide to pellet- and wood-burning stoves.)

The pellets used in pellet stoves are often made from sawdust recovered from lumber mills, furniture factories, and flooring manufacturers. Pellets are also made from corn, wheat, sunflower seeds, and other biomass ingredients.

Whatever their raw material, pellets have traditionally been sold at home centers, supermarkets, and other retailers in 40- to 50-pound packages. When you consider that an average stove might burn through a couple pounds of pellets every hour during the winter months, loading all those bags into your car and unloading them at home can be a lot of work.

That's why more suppliers have started delivering pellets by the pallet directly to consumers. This shift cuts out the middleman and a lot of the lifting, though you still have to empty the pellets into your stove, which creates plastic debris and a good deal of dust.

Jon Strimling, founder of PelletSales.com in Goffstown, New Hampshire, has recognized the inefficiency of that system. "You wouldn't pour a bucket of oil into your furnace each time you wanted to turn it on," he says. "So why should you have to do it with pellets?"

PelletSales.com has developed a bulk-delivery system in which pellets are shunted from a truck to a large hopper on your property, say in the garage or garden shed. Once the necessary transfer equipment is installed between the stove and hopper, you can in theory fill your stove with the flick a switch. Note that you'll still need to empty the ash by hand every week or so, according to the Pellet Fuels Institute. Premium pellets produce about 1 percent of their weight as ash; standard pellets, about 2 to 4 percent ash.

Besides eliminating the pellet-hauling hassle, the delivery system could also generate savings, since 10 to 15 percent of the cost of pellets goes to packaging, according to Strimling. That should help offset the initial cost of the storage bin and transfer equipment, which can run $1,000 to $5,000. No small chunk of change, sure, especially for a piece of equipment that's essentially a large space heater. If you want a pellet stove but don't have the means or the desire to deal with a hundred 40-pound bags each year, Strimling's bulk-delivery program might be the answer.

The program is still at the pilot stage, but Strimling hopes to have it up and running in time for the 2009-2010 heating season.—Daniel DiClerico

Essential information: As part of some new federal legislation that covers a wide range of energy incentives, you are entitled to a $300 tax deduction if you purchase a pellet stove after January 1, 2009.

Buzzword: Zoning

What it means. Don't confuse this week's Buzzword with school or community zoning. Rather, in the context of heating and cooling, zoning refers to dividing a home into two or more areas where you set different temperatures. Historically, zoning was more common in homes with a hot-water boiler system than in those with a forced-air furnace system. But as houses bulked up in recent years (thanks in part to the McMansion movement), the need to zone even forced-air-heating systems increased. Besides having more interior space to heat and cool, big houses are more likely to have living spaces with different exposures. To keep these rooms from getting too hot or too cold on certain days, multiple distribution systems are needed to control the flow of conditioned air.

Zoning is pitched as a way to not only make your home more comfortable but also to save you money by letting you reduce the heating or cooling to seldom-used spaces. Some manufacturers and retailers also tout zoning by suggesting that you can save by running a space heater or pellet- or wood-burning stove in a frequently occupied room and turning down the heat with your thermostat (see video, right) in other parts of the home.

Why the buzz? Residential heating costs for the 2008-2009 season are projected to be higher than for last season, according to the Energy Information Administration and, says the National Oceanic Atmospheric Administration, the lower 48 states will experience 2.4 percent colder temperatures this winter.

Those figures might make zoning a more tempting proposition. And, in fact, zoning has its place in certain situations, including where one room has very different heating requirements from others in a home. "A room with lots of glass or a bedroom built over a garage could both be candidates for zoning," says Buck Taylor, a heating professional and consultant for the U.S. Environmental Protection Agency.

But for retrofit scenarios, the question of whether it pays to implement zoning depends largely on the accessibility of the hot-water pipes (for a hot-water system) or ductwork (for forced-air system). On a forced-air system, if the central air conditioner and furnace share the same distribution system, balancing the airflow correctly can be even trickier and costlier. 

"For homes with a forced-air system, adding zoning is number 11 on the list of things I'd do [to lower energy costs]," says Harvey Sachs, a senior fellow at the American Council for an Energy-Efficient Economy. He suggests you put your money into insulation, windows, and other forms of weatherization. (Read our advice for cutting your heating bill and enhancing the value of your home.) Taylor agrees, even for homes with a boiler: "Every dollar should be spent in the shell of the house, reducing how much heat is required in the first place, before you start trying to solve problems with mechanical systems."

Chandler von Schrader, head of the U.S. Environmental Protection Agency's Home Improvement with Energy Star program, adds ductwork sealing to the steps you should take before zoning your HVAC system. He notes that duct leakage is in the 30 to 35 percent range for many homes. Correcting the problem can lead to significant savings and enhanced comfort. "Unfortunately, sealing ducts is dirty, nasty work, crawling around attic crawl spaces," Schrader says. As a result, it's a lot easier for contractors to simply zone the system. "But that doesn't correct the root cause of the problem," Schrader adds.

As for zone heating with a fireplace, fireplace insert, or wood or pellet stove, that's a smart move only if your home is buttoned up tight and the fireplace is more efficient than your heating system. If your gas fireplace is 70 percent efficient and your furnace is 85 to 90 percent efficient, you're probably better off running the furnace.

Bottom line, zoning is seldom the cure-all that some heating-equipment manufacturers would have you believe. So work with a trained professional to get a comprehensive home-energy audit, including a residential-load calculation, and determine the best approach to improving the energy efficiency of and comfort level in your home. Find a qualified heating pro by reading this story and visiting the Residential Energy Savings Network.—Daniel DiClerico

Essential information: Learn how to save hundreds on your energy costs, and discover the differences between energy savers and every hogs.

Firewood and wood pellets become a hot commodity

As stock indices worldwide declined this fall, prices for firewood and wood pellets climbed. So too is the number of reported incidents of stolen wood in central Maine. In 2008, according to the Kennebec Journal, there have been seven reported thefts of wood, up from two in 2006. The thieves take trees awaiting shipment to mills and cut it into firewood for eventual sale to consumers.

Throughout the Northeast, skyrocketing fuel costs have lit a fire under the firewood business. The demand is sparking severe shortages ahead of the home-heating season, says Sarah Smith, forest-industry specialist at the University of New Hampshire cooperative extension. "If I called up 10 folks in the firewood business and asked them for a cord of dry wood, they'd all laugh," she says.

The firewood shortage started this summer, when soaring oil prices motivated more people to consider heating their homes—€”or supplementing their oil, natural-gas, electric, or propane heat—€”with wood. "The loggers and firewood producers who were predicting and processing wood based on their usual demand couldn't accommodate all these people, many of whom hadn't burned wood in the past," says Smith.

Dwindling supplies have led to higher prices. Customers are paying up to $250 for a cord of green wood, material that hasn't been sufficiently dried for burning. Two years ago, the same cords were going for as little as $100. Those lucky enough to find seasoned dry wood can expect to pay at least $350 for a cord, says Smith.

A similar trend is affecting the cost of wood pellets used in pellet-burning stoves. "Prices are definitely higher," says Leslie Wheeler, director of communications for the Hearth, Patio & Barbecue Association. Although actual costs vary by region, she says the average is $250 to $260 per ton of pellets. An October 1 article in the Bangor News put the average price per ton at $300. Two years ago, the United States Department of Energy listed the average price as $190.

There are ways to try to save on wood and pellets. Buy wood pellets in bulk, for instance. For cordwood, Smith advises checking the local papers and sites like Craigslist for deals. But, remember, the short supply of firewood provides an opportunity for shifty suppliers. To keep yourself from getting burned, follow these tips:

• Request the right wood. Maple, oak, cherry, and other hardwoods burn longer and cleaner than softwoods like pine, aspen, and poplar. Softwoods tend to create more creosote in the chimney; if you don't eliminate the creosote regularly, it can become a fire hazard. The Wood Heat Organization's Web site includes a list of the best-burning species and helpful tips for building and maintaining wood fires. Tip: Don't get ripped off by a scamming chimney sweep.

• Get what you pay for. A full cord measures 128 cubic feet, or a stack roughly 4 feet high x 8 feet long x 4 feet deep. A face cord is 4 feet high x 8 feet long and as deep as the individual logs—typically 16, 20, or 24 inches, depending on the dimensions of the fireplace or stove. Be home when the wood is delivered and have the vendor identify in writing the type of wood you're getting. Wood species can be difficult to identify. Hardwoods tend to be denser than softwoods, so a simple heft test can provide a helpful clue. Also, many softwoods have a telltale piney scent. Well-cured wood is grayish on the end, with radial cracks.

• Have the vendor stack the logs. You'll pay more for the service, but you will be able verify how much wood got delivered before the delivery guy drives away. Be on the lookout for loose stacking, which is a trick crooked vendors use to short-change unsuspecting customers. If you've ordered a face cord, check that the logs have been cut to the specified length. To prevent termites and other insects from invading your home, stack firewood away from the structure, preferably in a sunny, exposed spot; you can use a plastic tarp to keep the top layer dry.

• Obtain a receipt. The bill of sale should include the vendor's contact information, the sale date, the type and quantity of wood, and the purchase price. A reputable vendor won't object to the request.—”Daniel DiClerico

Essential information: Before you light a fire or turn up the thermostat, read these tips for locking in the heat.