I've just finished updating the Fuel Comparison Chart at my
alternative heating site and corn is once again the least expensive fuel. Even
at its all time high of $7.60 a bushel at the end of June, it was still less
expensive than all other fuel types.
Since then the price has retreated to $5.42/bushel or $12.10
to produce 1 MM (million) Btu of heat. (The cost to produce 1 MM Btu of heat
from any given fuel is useful as an "apples to apples" method of
comparing fuel prices).
Based on today's prices, $1 of fuel corn provides the same
amount of heat as $2.25 of heating oil.
The price for a ton of wood pellets has risen 10% since the
Summer '08 Update and now averages $299/ton, or $18.69 per 1MM Btu. The reason
behind the increase is a shrinking supply of sawdust (the raw material for wood
pellets) due to the slowdown in new home construction. Also, some manufacturers
of wood pellets report having to send their trucks as far as 400 miles to
retrieve raw material contributing further to rising costs.
Despite the recent increase, wood pellets are still 30% less
expensive to heat with than oil.
A cord of seasoned hardwood for the '08 - '09 heating season
now costs around $295, or $17.90 per 1 Mil Btu. This is a third less than the
cost of fuel oil for an equal amount of heat. If you want to save even more by
seasoning your own hardwood, green wood usually sells for $50 less per cord
than seasoned.
Bear in mind, the 1 MM Btu "apples to apples" cost
comparison does not take into account the fuel efficiency of your heating
appliance. The efficiency of your furnace or stove has a huge impact on what
you actually end up paying to heat your home. For example; an 80% efficient
heater will consume 23% less fuel than one rated at 65%.
Unlike the struggling auto industry, heating appliance
manufacturers have always understood the value of fuel efficiency. Many newer
model pellet stoves, outdoor furnaces and fireplace inserts offer efficiency
ratings well above 80%.
The two pillars of cost effective heating, alternative or
otherwise, will always be burning the least expensive fuel in the most
efficient heater.
You can control fuel costs to some degree by waiting, if
possible, for prices to moderate as is the case with corn. If you heat with
wood pellets the best deals usually occur right after the end of the heating
season. And anyone who heats with wood already knows the cheapest wood is the
wood you cut yourself.
You do, however, have much more control over the efficiency
of your heating appliance by adhering to a regular maintenance schedule. If you
haven't already tuned up your furnace or pellet stove this year for maximum
efficiency, time is running out.
Please note: The prices quoted for corn, wood pellets and
seasoned hardwood in this article were accurate on the day it was written but
will continue to change as market forces dictate. |
