Widespread Adoption of Pellet Central Heating in
the Northeast: Overcoming the Challenges
Advanced Energy Conference, Buffalo NYOctober 13, 2011
Charlie NieblingGeneral Manager, New England Wood Pellet LLC, Jaffrey NH
Jaffrey, NH and BESCapacity 85,000 tons
Schuyler, NYCapacity 85,000 tons Deposit, NY
Capacity 85,000 tons
Facilities
Wood Pellets Grass Pellets
Wood or grass briquettes Wood chips
Refined and Densified Biomass Fuels
Pellet Central Heating: Widespread in Europe
…..not that far off in northeast U.S.
1. Res/Comm/Ind Delivery of Pellets in Bulk
- Much like oil or propane
- Convenient - you don’t need to be there
4. Easy Installation/Service
- Simple venting
- Simple, once-a-year maintenance includes ash removal
3. Fully Automated Central Heating System
- Boilers and furnaces support existing distribution system
- Automated feed system
- Self-ignition and self-cleaning
- Safety that is superior to propane or gas or heating oil
2. Sufficient Storage
- 1-3 deliveries a year
- Attractive and/or unobtrusive
New boiler technology beginning
to expand central heating
options; bulk delivery makes it
possible
HARMAN BOILER;
Domestic U.S (PA)
OKOFEN Boiler
Austrian; licensed for
manufacture in PA
ACT BIOENERGY; Austrian
boiler licensed for
manufacture in NY
NE Wood Pellet truck making commercial delivery
Heating the Northeast with
Renewable Biomass: A Bold Vision for 2025
� An American Revolution
in thermal renewable
energy, to start in the
Northeast
� 25% of all thermal energy
in Northeast from
renewable energy by 2025
� 75% of renewable
thermal energy from
sustainably-sourced forest
and agricultural biomass by
2025 (balance from solar
thermal and geothermal)
www.nebioheat.org/vision
2010Biomass = 4.16%
of thermal energy
2025Biomass = 18.50%
of thermal energy
New York Case Study
• 33% of households heat with oil
= 2.26 million households
• At 40-year replacement rate = 56K boilers/year are being replaced
• 5% biomass replacement rate/year = 2,800 boilers/year
• Approximate fuel need = 10 T/yr in central heating of average home
• = 28,000 T/yr growth in demand
• NY can sustainably support new capacity of
300-400K+ TPY
Obstacles and Challenges
• Fuel Manufacturing Capacity
• Currently 800K TPY
• Need 7,000K TPY
• Represents $1 BILLION in CAPEX if all pellets
• Forest and Ag fuel supply infrastructure
• Little R&D in support of advanced manufacturing
NE Wood Pellet Schuyler NY Plant
Obstacles and Challenges
• Bulk Distribution Infrastructure
• Currently <10 bulk pellet trucks operating in Northeast
• Need advanced pneumatics for maximum flexibility = $200K+ for European-styled truck
• Need satellite storage and network of bulk redistributors
• Tremendous opportunity for heating oil and propane industry
Maine Energy Systems Pneumatic Pellet Delivery
Obstacles and Challenges
• High Capital Cost of System is Barrier
• Advanced residential systems (30kW) = $20-25K with bulk storage
• Advanced commercial/institutional (200 kW) = $100-150K with bulk storage
• BUT….simple payback very favorable – 4-7 years based on current oil/propane pricing
• Need gov’t support for demo projects
Froling Turbomat 200 kW Pellet Boiler (Austrian)
Obstacles and Challenges
• Lack of Awareness –Education and Promotion
• Homeowners & businesses do not know option exists
• Limited capacity in industry to invest in promotion/marketing
• Little support from government
• Time for a pellet check-off program to fund industry-wide marketing?
Joint industry ad in NH Union Leader, Sept 2011
Obstacles and Challenges
• Volatility of Oil/Propane Pricing and Competition from Natural Gas
• Wild swings in oil/propane pricing make long-term planning and risk investment difficult
• Expansion of natural gas distribution for heating a big unknown
• Pellets must compete effectively with these fuels
• The good news for pellets –all are projected to increase in price in future (EIA) while pellets have track record of stable pricing
Cost competitive bulk distribution vs. natural gas availability
Obstacles and Challenges
• Lack of policy support for thermal RE generally, and biomass thermal specifically
• Federal/state focus on liquid fuels, electricity
• USDOE ignores thermal
• Creates market inequities within biomass
• Demand side incentives, infrastructure grants needed
• But….steady progress is being made! e.g. NYSERDA, NH, VT, MA
Working to Overcome the Challenges
• Biomass Thermal Energy Council – www.biomassthermal.org
• Northeast Biomass Thermal Working Group –www.nebioheat.org
• Pellet Fuels Institute –www.pelletheat.org
• NY Biomass Energy Alliance –www.newyorkbiomass.org
• Cooperating agencies like NYSERDA, USDA Forest Service
