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Fuel cost analysis

Cheap Pellets, Expensive Heat? Check the Cost That Matters

The lowest price per tonne is not necessarily the lowest heating cost. Compare delivered price, as-received net calorific value and boiler efficiency on the same basis. A cheap fuel that provides less useful heat can require more tonnes—and more spending—for the same job.

By WoodPelletCN · · Purchasing contact: Jasmine Li

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Close-up photograph of unmarked wood pellets
Pellet appearance does not establish calorific value, moisture or ash. Use identified batch data for a purchasing comparison.

The three inputs behind a comparable fuel price

Start with the price delivered to the same receiving point, not a mix of factory and delivered quotations. Then identify net calorific value (NCV) on an as-received basis. Finally, use an efficiency estimate supported by your equipment and operating conditions. A laboratory fuel test does not establish boiler efficiency.

Fuel cost per useful MWh = delivered €/tonne ÷ [as-received NCV in MWh/tonne × efficiency as a decimal].

For NCV in MJ/kg, divide by 3.6 to obtain MWh/tonne. Apply efficiency once. Do not subtract moisture again from an as-received NCV. Read our NCV and GCV guide before comparing results with a different reporting basis.

A cheaper tonne can produce a higher bill

Illustrative arithmetic only. These invented inputs explain the method. They are not current European prices, WoodPelletCN specifications, quotations or customer results.

Input / resultExample AExample B
Delivered fuel price€240/t€220/t
As-received NCV4.8 MWh/t4.2 MWh/t
Assumed useful-heat efficiency85%80%
Useful heat per tonne4.08 MWh3.36 MWh
Fuel cost per useful MWh€58.82€65.48
Fuel required for 100 MWh useful heat24.51 t29.76 t
Fuel spend for 100 MWh useful heat€5,882.35€6,547.62

Example B costs €20 less per tonne but approximately €665 more for the same 100 MWh of useful heat. Results use unrounded inputs; displayed values are rounded. The assumed efficiency difference is for illustration, not a claim about any supplied pellet.

What this calculation leaves out

Fuel expenditure is only part of operating cost. Add differences in electricity use, servicing, ash handling, storage, finance and equipment investment when assessing a project. Keep recoverable taxes consistent between quotations. A fuel-only comparison is not a complete payback calculation.

For gas quoted in €/MWh of fuel input, divide that tariff by the corresponding efficiency to estimate fuel cost per useful MWh. Ensure gas energy and efficiency share an NCV or GCV basis. Do not put €/MWh values into a calculator field labelled currency per tonne.

Turn the example into your own decision

  1. Use the latest delivered offer and note its expiry date.
  2. Match the test report to the proposed fuel and sample.
  3. Ask the equipment team for the relevant efficiency range.
  4. Repeat the calculation at lower and higher efficiency assumptions.
  5. Review the complete operating-cost difference before choosing.

Use our two-fuel calculator for per-tonne inputs. For a WoodPelletCN proposal, share destination, expected demand and required specifications so the quotation has a comparable scope.

Buyer questions

Is the cheapest wood pellet price always the best offer?

No. The delivered price, as-received energy content and actual useful-heat efficiency determine fuel cost per unit of heat. Other operating costs also affect the decision.

Are these WoodPelletCN prices or product specifications?

No. Both columns are hypothetical teaching examples. A purchase needs a current quotation and agreed fuel evidence.

Can lower fuel expenditure be called energy savings?

Not automatically. Buying heat at a lower cost is different from reducing the energy required. Measure useful demand and system performance separately.

Sources and scope

Sources checked on 5 November 2026. This is WoodPelletCN purchasing commentary, not a quotation, equipment approval or guaranteed saving.

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