Future potential of wood pellets production

Wood pelleting today is a niche market with the resultant advantages and disadvantages.
First and always will be the financial factors working in the marketplace. Cost per
purchased unit energy does impact this marketplace and the heating values listed in
Section "A" of 18.6 to 19.8 MJ/kg ( 8000 to 8500 Btu/lb ) must be considered in view of
North American selling price today for pellets at $ 90 to $115/ton.-( March ,April 2000
figures ). Obviously this does not compare favorably with a fuel like coal on a cost only
basis, thus there other factors impacting the market which enable this industry to sell the
tonnage reported.
Those heating their homes with electricity see the picture from a different cost standpoint
and are a major consumer of this fuel, and propane with the recent cost increases also
leaves market potential.