| ently updated the Fuel Cost Comparison Chart at | | | | calculate the effective, or true cost of any |
| and the results were surprising. As of 3/20/06 it | | | | heating fuel for comparison purposes, you must |
| was actually cheaper in Metro Boston to heat with | | | | factor in the fuel’s efficiency. |
| natural gas than with wood pellets! | | | | All fuel efficiencies are expressed in percentages. |
| During these times of fuel price volatility, | | | | For example: coal is 60% efficient, electricity is |
| it’s important to keep a close eye on the | | | | 100% efficient and fuel oil is 80% efficient. In |
| relationship between fuel prices. Any homeowner | | | | order to make the fuel efficiency percentage |
| who uses a wood pellet stove to supplement | | | | useful when you compare one fuel to another, |
| their gas furnace could be losing money and not | | | | you must find the coefficient of these |
| even know it. | | | | percentages by dividing the decimal equivalent |
| If you can use a calculator, you’re only | | | | (60% = .60) by 1. So if you divide .60 by 1 you |
| minutes away from figuring out which fuel is the | | | | get a coefficient of 1.67. |
| cheapest to burn at any given time. | | | | The fuel efficiency rating for natural gas and |
| When you compare fuel heating costs make sure | | | | wood pellets is 85%. If you divide 1 by .85 you |
| it’s apples to apples. The standard | | | | get a coefficient of 1.18. Now plug this into our |
| quantity used for comparing residential fuel costs | | | | quick cost formula to obtain the effective, or true |
| is 1,000,000 BTUs of fuel heat content. | | | | cost, of the fuel you are burning. |
| Cost To Burn Wood Pellets | | | | Wood Pellets: $198 divided by 16 x 1.18 = $14.60 |
| Since a wood pellet stove needs only 125 lbs (1 | | | | Natural Gas: $1.1813 x 10.30 x 1.18 = $14.36 |
| 16 of a ton) of pellets to generate 1,000,000 | | | | By expanding the quick cost formula to include |
| BTUs, divide the cost per ton by 16. At $198 a | | | | the efficiency coefficient, the spread between the |
| ton for wood pellets it costs $12.38 to produce | | | | two fuels has now widened to $0.24. |
| 1,000,000 BTUs. | | | | Assuming fuel prices don’t go crazy, you |
| Cost To Burn Natural Gas | | | | could save as much as $75 during the remainder |
| The price per therm (look at your gas bill) of | | | | of this heating season by switching from wood |
| natural gas in Boston is $1.1813. When you multiply | | | | pellets back to natural gas. |
| it by 10.30 (10.30 cubic feet) it costs $12.17 to | | | | As prices change, feel confident that you have |
| produce 1,000,000 BTUs. | | | | armed yourself with a simple, yet powerful tool |
| It’s easy to see that natural gas heat | | | | to help you quickly determine when one fuel is |
| now costs about $0.21 less per 1,000,000 BTUs | | | | more cost effective to burn than the other. |
| than wood pellets. | | | | Here are the formulas to help you determine the |
| Here are the quick cost comparison formulas for | | | | true cost to produce 1mil BTUs of heat content |
| wood pellets and natural gas: | | | | for six more fuels: |
| Price per ton of wood pellets divided by 16 = | | | | Electricity: Price per kilowatt hour x 293 x 1 = |
| Cost to produce 1,000,000 BTUs. | | | | Corn Pellets: Price per ton divided by 16 x 1.18 = |
| Price per therm of natural gas x 10.30 = Cost to | | | | Fuel Oil: Price per gallon x 7.1 x 1.25 = |
| produce 1,000,000 BTUs. | | | | LP Gas: Price per gallon x 11 x 1.25 = |
| The quick cost formulas are useful only for | | | | Wood: Price per cord x .0607 x 1.67 = |
| comparing natural gas to wood pellets because | | | | Kerosene: Price per gallon x 7.41 x 1. |
| their fuel efficiencies are similar. In order to | | | | |