Lower Cost
Our systems can be fueled by a variety of biomass.
If you have an equine center, farm, forest land, or
sawmill, you will likely use horse manure, chicken
droppings, wood chips or saw dust, and your fuel
will be free. Otherwise, you will use wood pellets,
a low ash, high-energy, convenient fuel that can be
easily stored for long periods of time.
Pellet fuel is less than 40% of the energy
equivalent price of oil. Large facilities can
generally acquire pellets in bulk for under
$180/ton.
According to the U.S. Energy Information
Administration, one ton of wood pellets yields
approximately 16,500,000 BTUs while one gallon of
fuel oil contains approximately 138,690 BTUs. Thus,
one ton of pellets produces the same amount of
energy as 119 gallons of No. 2 distillate. As one
gallon of heating oil currently costs about
$3.80/gallon, 119 gallons (which produces the same
amount of energy as one ton of pellets) is over
$450. Thus, at $180/ton for pellets and $3.80/gallon
for heating oil, pellets produce an equivalent
amount of energy at less than 40% of the price of
heating oil. Converting from oil to pellet heating
will result in savings of over 60%. For a facility
which uses 100,000 gallons annually (100,000 gal. at
$3.80/gal equals $380,000), savings will be over
$228,800/year at today's oil price of $3.791
($380,000 for oil - $151,200 for pellets = $228,800
savings).
If oil prices rise 10% per year, the price for
heating oil for the next five years, and the amount
spent by such a facility on 100,000 gallons of
heating fuel will be as follows:
Year Oil Price Total Expenditures
2008/09 $4.18 $418,000
2009/10 $4.60 $460,000
2010/11 $5.06 $506,000
2011/12 $5.56 $556,000
2012/13 $6.12 $612,000
Total $2,801,700
This amount contrasts with a total of $756,300
for five years of pellet fuel (840 tons per year at
$180/ton = 151,200/year x 5 years = $756,300) under
a long term, fixed-price contract for pellets. Thus,
converting to pellet heating yields a savings of
$2,045,400 over a five year period ($2,801,700 oil -
$756,300 pellet = 2,045,400 savings). If prices
continue to climb at 80%, as they have this year,
savings will be many times this amount.
Stable Cost
The price of wood pellets is relatively stable,
and can be secured through a long term contract.
Skanden Energy can offer most clients a five year
contract for local pellets at a fixed price of
$180-200/ton. In the event that pellet prices
increase dramatically in the distant future (a very
unlikely event), most Skanden systems can be
converted to take other forms of biomass, such as
wood chips. Thus, the cost of fueling these systems
is extremely stable.
Supports Rural America
Rather than purchase imported oil and boost the
economies of oil-rich countries, wouldn't you
rather buy fuels produced in rural areas of the
U.S?
With the recent closure of many forestry-related
businesses, including sawmills, pulpmills,
lumber companies, etc., the rural economy of the
U.S. has suffered tremendously and unemployment
has risen to over 15% in some areas. New pellet
mills are starting up in some of these deserted
facilities. As these new mills begin production,
jobs are created. By converting to pellet
heating, you are putting your dollars to good
use in rural America.
Environmentally Friendly
The use of biomass heating helps the environment
in many ways:
Carbon Neutral
All forms of natural biomass are carbon neutral.
For example, with wood, the carbon released
during combustion is the same amount as is
consumed during the lifetime of the tree, and
also the same as would have been released had
the tree fallen and rotted on the forest floor.
Ultra-Low Particulate Emissions
When burned in a Skanden system at approximately
2000 degrees and filtered with multi-cyclones,
particulate emissions are ultra-low.
Renewable
All biomass fuel that we recommend is renewable.
Wood pellets are produce from wood sourced from
sustainable yeild forests and mill waste. Pellet
mills typically run on electricity produced by
biomass power plants, rather than coal. Thus,
unlike ethanol and other biofuels, pellets are
truly "green energy" both in their production
and their combustion.
Forest Friendly
The use of pellet fuel helps prevent forest
fires. Pellets are produced from "off-spec" wood
(tops and branches that are otherwise left to
rot on the forest floor), the most easily
ignitable portion of trees. Pellet production
minimizes forest fire risks and enjoys the
support of the U.S. Forest Service.
Minimizes Environmental Impact of Transportation
Local production minimizes the environmental
impact of transportation.
No Risk
With biomass, there is no risk of accidental
contamination (such as from an oil spill/leak).
Strengthens our National Security
Our national security is threatened by our
dependence on foreign oil. Switching to locally
produced fuel strengthens America.
Proven Trouble-free Heating Systems
Wood pellet heating systems produced in
Scandinavia are used by thousands of schools and
other facilities throughout Europe, They are
extremely easy to maintain and trouble-free.
They require minimum maintenance, such as
refilling the storage silo with pellets,
emptying the ash bucket (ideally in a garden
where it is beneficial for plants), and sweeping
the chimney. The systems carry a 24 month
warranty. Repairs for ordinary wear and tear are
generally easy and infrequent.
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