Wood pellet business spurred by short supply

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January 10, 2009

By DAN HEATH The Press Republican Sun Jan 11, 2009, 05:18 AM EST

PERU -- Pellet it like it is.

Frustrations finding pellets for their wood-pellet stove, especially toward the end of the winter heating season, led Scott and Lois Bouvier to start Northern Adirondack Pellet Corporation, a wood-pellet supply company.

"In the later months of winter, you couldn't find pellets. When you did find them, they were ungodly expensive because of demand," Mr. Bouvier said.

Describing himself as someone who takes action when a problem arises rather than complain about it, he decided to attend the Alternative Heating and Energy Fair organized by the Town of Plattsburgh held in August.

Mrs. Bouvier said they spoke with several wood-pellet manufacturers to see if there was a need for a business focused entirely on wood-pellet sales.

"We came away with more than 200 (potential customer) names from the energy fair alone," she said.

He rented the former J. Hogan Refrigeration building at 10 Train Road in Peru and purchased a propane-powered forklift and a pallet jack to help with loading and unloading wood pellets. The warehouse is convenient for loading and unloading, with a loading dock and an at-grade entrance also.

Their first tractor-trailer load, 24 tons of wood pellets, was sold within two days, Mr. Bouvier said.

The warehouse is packed with pallets that contain 50 40-pound bags of wood pellets. Customers can place an order and make an appointment to pick up wood pellets seven days a week by calling 643-0772.

"We can give prices and availability right over the phone," Mr. Bouvier said.

Customers can load their own or have his help. Mr. Bouvier said he doesn't offer a delivery service yet, but hopes to find someone who might be interested in working for him to provide that service.

Mr. Bouvier said his current price is $290 per ton. He said some places are asking $325 to $350 per ton.

Talks are under way with wood-pellet manufacturers for reduced prices for those who buy next winter's supply in spring or summer. Those prices should be known in a few weeks, Mr. Bouvier said.

As far as they know, Northern Adirondack Pellet is the only business that only sells wood pellets. Many of the others also sell wood stoves or other supplies.

When a store does get a shipment, pellets are often gone within the hour. Few will sell wood pellets by the bag, Mrs. Bouvier said.

Northern Adirondack Pellet is also supplying pellets for sale by the bag at Ukie's on Irish Settlement Road.

Wood pellets are made by compressing sawdust waste created in woodworking processes. That means the wood has already been kiln-dried, which helps it burn better.

Bouvier said he offers pellets from three manufacturers, both hardwood and softwood pellets, which allows customers to try each type to find one they prefer.

Mr. Bouvier said he works at New York State Electric and Gas, so the wood-pellet business is essentially a second job. The goal is to make sure the customer is always happy.

People have called late in the night when they have exhausted their supply and can't find anyplace open.

"I'll come down and help them out," Mr. Bouvier said.

Mr. Bouvier said his daughter, Natalie, helped him build a small office that includes a small heater, television and refrigerator so she can come down while he helps customers.

"She likes coming down here," he said.

Mrs. Bouvier said that as a stay-at-home mom, she's always around during the day to take orders. They have some friends who can help customers load their orders when he's at work.

"I don't do forklifts," she said.

dheath@pressrepublican.com