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Follow on Google News | White Paper - Why Wood Pellet Heating is Great for Commercial Laundries in New England StatesThe main benefit for commercial laundry operations converting to wood pellet fuel for hot water production is the economics of this low cost fuel. Wood pellets are 40-50% less than the equivalent in propane or heating oil.
By: biomass commodities corp An explanation of why commercial laundry operations in rural sections of New England are ideal for utilizing wood pellets for heating. By: Charlie Agnew, January 23, 2013 Fuel Cost Comparison The main benefit for commercial laundry operations converting to wood pellet fuel for hot water production is the economics of this low cost fuel. Wood pellets are 40-50% less than the equivalent in propane or heating oil. Current relative costs per million Btu of energy output are shown in the chart below: Source: Biomass Commodities Corporation, average prices as seen throughout New England Wood Pellet Cost Wood pellet fuel for bulk consumers has proven highly cost stable over the 5 year period this information has been tracked here in the northeast US. This stability allows building owners to budget for building expenses through a more stable cash flow. Below is a chart showing the relative costs for residential wood pellet fuel versus heating oil: Source: New England Wood Pellet, Bulk Fuel Pricing History vs. NH OEP Residential #2 Oil Price Report Boiler Technology Wood pellet boilers are nowadays readily available, highly automated, easy to maintain, and as reliable as their fossil fuel counterparts. Pellet boilers are highly efficient and offer a high level of controllability. Pellet appliances are installed like any other boiler, require venting through a chimney (metal or ceramic), and an area for fuel storage. Pellets can be stored inside or out, and due to their low moisture levels will not freeze. Pellets must be kept dry as they will otherwise absorb moisture and spoil. The best storage volume for the dollar is done in an outdoor silo. Pellet boilers are sold with pellet handling systems to deliver the fuel from the storage unit to the boiler via flex (shaftless) auger, solid shaft auger, or vacuum. These systems are fully automated and require no operator handling of this material. Maintenance Maintenance of a pellet boiler system is greater than a liquid or gas-fueled system. Depending on sophistication of the equipment, it is typical that the ash bin will need to be removed and burner raked every 1-2 weeks, the boiler shut down and serviced mid-season, and the boiler serviced at the end of season. Since a large portion of the cost of operating a commercial laundry business is in the production of hot water (or steam), wood pellets offer an effective way to save money for these business owners. Integration of a new pellet boiler system simply requires allocating the physical space for this equipment, water and electrical connections, and venting of the exhaust. Equipment Cost Purchasing and installing a wood pellet heating system does carry a higher cost compared with conventional systems. Allocating [or building new] space for the pellet system, plus the cost of the equipment makes the initial cost higher than fossil fuel alternatives. However, as you may already know, the fuel cost savings will quickly pay back this difference, often in less than 5 years. Funding Opportunities The states of MA and NH are offering grant money to seed further growth in the installation and use of wood pellet heating systems. These funds will be awarded to applicants interested in moving forward with the purchase and installation of pellet burning appliances in 2013. If interested, Biomass Commodities Corporation will help first evaluate your project, apply for funding, and install the equipment. Please contact us today for more information on how to get started! Charlie Agnew charlie@biomasscommodities.com Biomass Commodities Corporation 227 Adams Road Williamstown, MA 01267 413-458-5326 PO Box 8803 Portland, ME 04104 207-576-3490 End
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