Regional Real Time Results

Based on tons of pellets delivered since Feb. 1, 2012 to projects in Maine, New Hampshire, Vermont and New York

gas
$1,592,207
Savings on Fuel

Amount saved by homeowners who switched to wood pellets.

See the math: Savings

We calculate fuel savings by subtracting the cost of wood pellets delivered from the money that would have been spent on fossil fuel for an equivalent amount of heat. To make the comparison, we calculate how many gallons of oil (for example) would have been needed to produce the amount of heat produced by the pellets.

Dollars Saved = (Dollars that would have been spent on fossil fuel) – (Dollars spent on pellets)

We track the tons of pellets delivered to all our program participants and get monthly fuel prices from state energy offices and/or pellet delivery companies. Other elements of the equation include the following:

  • 1 ton of pellets = 119 gallons of oil
  • 1 ton of pellets = 170 gallons of propane
leaf
5,603
Net Carbon
Dioxide Reduction

Tons net carbon dioxide avoided by not burning oil.

See the math: Net carbon reduction

We calculate the net reduction in carbon dioxide that comes from using wood pellets instead of fossil fuel by multiplying the gallons of fossil fuel not burned by the pounds of CO2 produced per gallon of fossil fuel. We discount the result by 15% to because there is a time lapse between when pellets are burned and when new trees grow back to sequester carbon again.

CO2 Avoided = (Fossil fuel not burned) * (CO2/gallon of fossil fuel) * 0.85

Elements of the equation include the following:

  • 1 ton of pellets = 119 gallons of oil
  • 1 ton of pellets = 170 gallons of propane
  • 22.38 lbs/CO2 per gallon of oil
  • 12.7 lbs/CO2 per gallon of propane
money
$4,171,676
Total Impact Value to Local Economy
Total impact of dollars continuing to circulate in local economy.

See the math: Total Economic Impact

We calculate the total economic impact of using wood pellets instead of oil or other fossil fuels by adding the money saved by using pellets instead of fossil fuel to the money spent on wood pellets.

We assume that 90% of the money saved stays in the local/regional economy and that 100% of the money spent on wood pellets stays in the local economy. Economic impact studies use a multiplier to reflect the positive effect of money as it ripples through the economy. We use 1.8 from the IMPLAN system as our multiplier.

Total Impact = (Dollars saved by switching to pellets * 90% of savings stays local) + (100% of money spent on pellets) * (1.8 multiplier)

or

Total Impact = (Savings * 0.90) + (Tons of pellets * Price of pellets) * 1.8

To fill in the variables, we track the tons of pellets delivered to all our program participants and get wood pellet prices from state energy offices or delivery companies.

Typical Results: Oil vs. Wood Pellets*

See the benefits of replacing your oil burner with a wood pellet boiler!

In the Northeast, the average home uses 829 gallons of oil, which equates to about 7 tons of pellets based on thermal (Btu) production. Burning wood pellets instead of oil saves money for the homeowner, keeps money circulating in the Northern Forest economy, and produces less net carbon dioxide. See the comparison below!

Average Fuel Use Per Home

829 Gallons

of Oil

7 Tons

of Wood Pellets

Reduces Oil Use

Cost to Homeowner

$2,238

829 Gallons at $2.71/gallon

$1,743

7 Tons at $249/ton

Lower Cost

Savings

$0

for Homeowner

$495

Homeowner Savings

Save Money

Direct Value to Local Economy

$492

22% spent on oil stay local + $0 saved

$3311

100% spent on pellets stays local + 90% of savings $495 stays local

Keep $$$ circulating locally

Total Economic Impact

Each dollar circulates an average of 1.8 times locally

$886

Direct Value x 1.8

$5960

Direct Value x 1.8

Boost economy

Net Carbon Dioxide Avoided

0 Tons

Carbon dioxide avoided

9.32 Tons

Carbon dioxide avoided

Reduce Pollution
See Sources