Affordable Heating with Alternative Fuels

With fuel, heating, and living costs rising, it is more important than ever to find affordable ways to heat homes. Rural Energy Products has taken several methods of heating and compared costs to provide consumers with accurate information regarding fuel prices.

The heat output of fuels is measured in British Thermal Units (BTUs). One BTU is the amount of heat needed to raise the temperature of one pound of water by one degree. The table below compares the relative costs of corn, wood, and wood pellets to traditional fossil fuels. Because different stoves, heaters, and furnaces have varying levels of efficiency in burning fuels, the Effective Cost column is a more accurate comparison of the different fuels and appliances.

In most cases, equipment used to burn corn (and other fuels) is not 100% efficient, so it is important to use burner efficiency in calculations for heat output. When comparing costs for using different fuels, it is easiest to compare cost per unit of energy produced; cost per million Btu is a common way to compare fuel costs. Cost per unit of fuel, energy content per unit of fuel, and burner efficiency all need to be considered in calculating fuel costs.

Example: Calculate the cost per million BTU for 15% moisture shelled corn.

• $6.75 per bushel
• Stove of 85% Efficiency
• Cost per million BTU = $17.70 per million BTU
• [$6.75/bu ÷ (448,000 Btu/bu x 0.85 efficiency)] x 1,000,000

Heating Cost Comparison for Traditional and Alternative Fuels

Type of Fuel	Rate Per Unit	$/Therm (100,000 BTU)	20,000 BTUH For 24 Hours
Corn	$6.75 per Bushel	$1.42	$6.81
Wood	$200.00 per Cord	$.91	$4.36
Coal	$300.00 per Ton	$1.30	$6.26
Natural Gas	$1.46 per Therm	$1.46	$7.01
Pellet	$200.00 per Ton	$1.22	$5.85
Oil	$3.71 per Gal	$2.65	$12.72
LP Gas	$2.25 per Gal	$2.42	$11.61
Electric	$.15 per KW	$4.39	$21.10

*Please remember that market prices will vary, and these cost comparisons may need to be re-calculated based on current community market conditions.