High demand strains supply of wood pellets

PROVIDENCE, R.I. –Those high heating oil and natural gas prices have caused a run on another kind of energy source: wood pellets.

The pellets are made from compressed sawdust gathered from various sources, such as furniture makers and sawmills, and are used in specialized stoves for heating. They’ve become more popular this winter largely because of high prices for traditional heating sources.
But the high demand for the pellets has caused a run on supply this winter — and a spike in prices. Stores in New England reported running out of the materials.

“We regret that due to the surge in popularity of our fuels that we have not been able to keep up with demand in recent months,” says a note on the Web site of New England Wood Pellet, a Jaffrey, N.H., company that makes wood pellets and supplies them to dealers. “We are moving aggressively to increase our manufacturing capacity.”

Boston Globe