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Wood Pellets??


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Starting to receive some enquiries from customers having pellet boilers installed. Made a few phone calls but even buying by the truck load does not bring the price down too much compared to what joe public can get delivered to his front door via the internet.

 

Does anybody supply pellets and if so who do you buy from. I think at best I would be lucky to make £30 a ton and thats before I have delivered them:confused1:

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I started selling Verdo pellets earlier this season; have a few customers but nothing great. Customers very focussed on price, they seem to rather buy cheap not so good pellets than buy better quality. I have to admit I only make around £50 before transport costs are deducted and that is buying in bulk. Not sure if it is worth it. To be honest I think the wood pellet market will grow hugely when domestic RHI kicks off next June (if gov does not change mind...). But I think you really need a small lorry with a blower and a setup to store all the pellets properly as I think that is the way it will go. Setting that up would be seriously expensive. Anyway far too busy selling firewood at the moment to worry about pellets!

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Depends what form. I get by pallet load (960kg) 96 bags 10kg bags, rrp £280, I sell £250. In this form for small pellet boiler users cheapest around £240 ish. Loose pellets no idea but can imagine it will be much cheaper

 

£240 for 960kg is £250 for the full tonne. And pellets are made from wood that's around 15% m/c as I understand it. My logs at 15% m/c and £110/m3 weight 1/3 of a tonne/m3.

 

So £330 for them as logs, or £250 if I turn them into pellets.

 

Clearly the difference comes when using offcuts, brash, waste, sawdust, undesirable woods, etc. But one would have to be a big operation to do that. Maybe I'll look at it when I finally mechanise and can catch the sawdust from a processor in a clean form!

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