High Oil Prices Boost Demand for Pellets

 

January 23, 2006

[Boston.com] High oil and natural gas prices have caused a run on wood pellets made from compressed sawdust from furniture makers and sawmills. The pellets, burned for heat, are more popular this winter. But high demand has caused a run on supplies, and a price spike. ''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 the website of New England Wood Pellet, of Jaffrey, N.H. ''We are moving aggressively to increase our manufacturing capacity." The shortage appears to be easing, The Providence Journal reported, but prices remain high. Anthony Martini, of Ocean State Stove and Fuel in Warwick, R.I., said 40-pound bags sold last year for $2 to $2.10; this year, they cost $5 to $6. (AP)