Brewer welcomes wood pellet co.
A new wood pellet venture establishing itself in Brewer aims to turn the area into one of the industry's hot spots. Construction is under way for the home base of ReVision Heat LLC, a new operation formed through ReVision Energy's wood-fuel heating division that will sell, install and service wood pellet boilers and stoves. And through a joint venture with Corinth Wood Pellets, the company will also offer direct delivery of Maine-made pellets to its customers.
The company hopes to open its office and boiler showroom at 510 Wilson St. within a month with a modest staff of three. But with these small beginnings, ReVision Heat and Corinth Wood Pellets are hoping to capitalize on growing interest in wood pellets and offer something new to the Maine consumer: a "one-stop shop" for everything pellet, says Corinth Wood Pellets President George Soffron.
ReVision Energy, a renewable energy system company with offices in Portland and Liberty, decided to branch off its wood-fuel division about five months ago, says Gary Higginbottom, in charge of market development for ReVision Heat. The company will sell, install and service wood pellet boiler systems and stoves, and deliver pellets straight from the source. A truck filled with the wood fuel will leave Corinth Wood Pellets and drive straight to businesses and residents, delivering wood pellets in the same way that oil is delivered.
"We think it's in the customer's and our best interest to have an entity that can design a complete heating system, install it and service it, and provide the fuel, with the fuel coming right from the manufacturer," Higginbottom says. ReVision Heat will also have an office in Portland.
The company will be the first in Maine to offer the entire gamut of pellet-related services, and the first to offer pellet deliveries right from the manufacturer, says Higginbottom. Direct deliveries mean consumers don't have to buy 40-pound bags of pellets at the store and lug them into their basements, he says. Corinth will contract with Maine Energy Systems in Bethel for the delivery truck, a specialty vehicle designed by entrepreneur and gubernatorial candidate Les Otten's company.
The Bangor area's proximity to Corinth Wood Pellets -- a mere 20 miles -- makes the metro area an ideal primary market, and should keep transportation costs low. "It's a very logical market for us, since the production of the pellets is right in their backyard," says Higginbottom. "A concentrated market makes delivery economical." The area's proximity to forestland has also raised awareness about heating with pellets. "People are very oriented to wood fuel; the market is receptive," he says.
Oil prices in northern Maine tend to run higher than southern Maine, which has driven some demand for pellets. "For the number of people using pellets, the further north you go, the higher it is," says Soffron.
Even so, business has been "up and down" for Corinth Wood Pellets since the facility opened in 2007. The high fuel prices of 2008 put the company's products in high demand, but interest has waned this season. The facility isn't running at full capacity, and its staff has dropped from 45 to 30, says Soffron.
The company has 240 retail accounts, most of which are in Maine, but Soffron sees the future of the industry as direct delivery. He's hoping the new venture will help drive business in what he calls the "mainstream" market -- businesses and consumers used to the convenience of heating with oil. "These people are cost-motivated," he says, adding that pellets are 25% cheaper than heating oil, even at today's prices.
"They're looking for a solution that's easy and convenient," he says. "They want to order the appliance and be able to call a number 24/7 to get help."
The new venture will capitalize on another developing pellet project. Austrian pellet boiler maker OkoFEN Pellet Heating recently announced it's building a boiler manufacturing facility in Bethel at the site of pellet company Maine Energy Systems, and is launching a new company called Maine Eco Pellet Heating LLC. The facility should be up and running by February, producing a boiler system for homes and businesses known as Auto Pellet Systems.
The boiler, which Higginbottom calls "very slick and easy to use," will be ReVision Heat's primary product. The company will also sell a less expensive boiler model, and prices for the two lines will range from $10,000 to $20,000. ReVision also plans to sell three models of wood pellet stoves that will range from $1,800 to $4,000.
OkoFEN's founder, Herbert Ortner, will be at Eastern Maine Community College on Jan. 19 to talk about his technology, why pellet heating has flourished in Austria and how Maine can make that happen. Higginbottom hopes the presentation, sponsored by Maine Energy Systems and ReVision Heat, will help spread the word about the new company and the benefits of pellets."Seventy-five percent of the money spent on fuel oil goes out of Maine, but with pellets, most of that stays in Maine," he says. "It has a huge impact on the local economy."
For more information on Ornter's presentation, contact Lee Landry at ReVision Heat at 989-8500 or lee@revisionheat.com.
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