Today, poultry farmers are feeling a severe squeeze on their profit margins. The cost of propane has never been higher, the challenges of raising a healthy crop are not simple, and the market price is not rising fast enough to keep pace with increased feed costs. In addition there are still the maintenance headaches that confront the poultry farmer daily and make his life a challenge.
A major cost component in poultry farm operations today is the cost to heat a poultry house. What is needed is a practical, cost effective, and reliable alternative to propane fuel which will reduce costs in the grower's business operation. This would allow farmers to take back control over a major cost component of their operation. To be acceptable it must be:
- Technically Viable
- Economically Feasible
- Environmentally Acceptable
- User Friendly
These four points were identified in an in depth report that was recently presented at the Poultry Partners Inc. 4th Annual Meeting. Among the many speakers at this year's meeting was Mr. Jim Wimberly, president of Biomass Systems of Fayetteville. His in- depth report (commissioned by Winrock International) clearly indicates that a wood pellet fueled device offers the most cost effective and dependable alternative to propane fueled heating systems.
It comes as no surprise to any active poultry farmer that the cost of propane has increased dramatically over the past few years. Propane once cost $0.65/gal. and it is now approaching $2.50/gal.
The challenge of heating your poultry house now has a solution; the GREEN HEAT system. A GREEN HEAT system will:
- Reduce your heating expense
- Dramatically improve the health of your flocks resulting in higher productivity
- Increase revenue
- Add years of life to your facility and operating equipment.
The solution is really quite simple and yet it is based on many years of proven performance in the residential market. Heating with Wood Pellets is not a new technology, but it has come into its own in the past few years with the continuing rise in heating fuel costs.
Explore our concept now, you will find the benefits numerous and more importantly the cost of the solution offers the opportunity for a very fast positive change to your farm's financial performance.
The following example is based on a single, curtain style poultry house with dimensions of 40 ft. width by 400 ft. length, fitted with a GREEN HEAT model 40.
- Present propane consumption per year
- 6500 gal/year
- Average propane cost
- $2.24 per gallon
- Amount of propane consumption now replaced by wood pellets
- 85%
- Energy content of wood pellets (as manufactured by OHP*)
- 8500 Btu/lb
- Cost of wood pellets
- $150.00 per ton
- Cost of GREEN HEAT model 40
- $30,000.00
- Service life of system
- 10 years
- System down payment rate20% of capex
- Financing interest rate
- 7% APR
Summary of Economics
| Target propane displacement | |
| Historic propane consumption | 6500 gallons / year |
| Propane replaced by wood pellet fuel | 5525 gallons / year |
| Starting cost of propane | $2.24 per gallon |
| Value of replaced propane | $12,376 per year |
| Fuel consumption over life of system | |
| Total wood pellet fuel consumption | 420 tons |
| Total propane saved | 55,250 gallons |
| System economics over service life | |
| Capital cost | $30,000.00 |
| Maintenance and electricity | $5,795.00 |
| Financing | $4,520.00 |
| Subtotal | $40,315.00 |
| Wood pellet fuel | $68,983.00 |
| Total | $109,298.00 |
| Propane savings | $135,514.00 |
| Net income to Grower | $26,216.00 |
| Simple payback, years | 4.3 |
The green heat system has been designed to function properly and provide years of dependable performance when Ozark Hardwood Products wood pellets are the fuel.
