Estimates of Wood Energy 

Demand for Residential Use 

in Alaska: an Update

Jean M. Daniels and Michael Paruszkiewicz 

United States Department of Agriculture

Forest 

Service

Pacific Northwest 

Research Station

General Technical Report

PNW-GTR-928

April

2016 DEPAR TMENT OF AGRICULT URE
Authors

Jean M. Daniels is a research forester, U.S. Department of Agriculture, Forest 

Service, Pacific Northwest Research Station, 620 SW Main St., Portland, OR 

97205; Michael Paruszkiewicz is an economist, Portland State University, 

Northwest Economic Research Center, PO Box 751, Portland, OR 97207-0751.

Cover: Photographs by David L. Nicholls.

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Abstract

Daniels, Jean M.; Paruszkiewicz, Michael D. 2016. Estimates of wood energy 

demand for residential use in Alaska: an update. Gen. Tech. Rep. PNWGTR-928. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific 

Northwest Research Station. 32 p.

Efforts to amend the Tongass National Forest Land Management Plan have necessitated the development of several management scenarios to assist with planning 

efforts. One scenario focuses on increasing the utilization of sawmill residues 

and low-grade material as feedstock for expanding biomass energy markets. The 

development of a biomass industry is viewed as a solution for a variety of problems 

in Alaska, from high heating fuel costs to a persistent lack of markets for mill and 

logging residue and low-grade logs since the last Alaska pulp mill closed in 1997. 

To support scenario development and ongoing statewide energy assessments, we 

used the methods from an earlier study to estimate the volume of wood required to 

meet potential residential demand for wood energy products in the state. Specifically, results show that converting from heating oil to wood-based energy products 

in Alaska could generate demand for up to 367,000 cords of green wood or 590,000 

tons of wood pellets. These estimates of the potential size and demand of local biomass markets are critically important for industry feasibility assessments, as well as 

attracting capital to develop an industry around biomass. The impact of combustion 

efficiency and consumer access to retail stove systems on residential conversion are 

discussed.

Keywords: Wood energy, Alaska, fuel cost, energy demand, distillate fuel 

use, heating oil, bioenergy.
Contents

1 Introduction

3 Objectives

3 Methods

5 Trends in Energy Consumption in Alaska

13 Cost Comparisons for Alternative Energy Sources

17 The Impact of Combustion Efficiency

18 Potential Demand for Wood for Residential Heating in Alaska

19 Other Costs of Conversion to Wood Energy Systems

21 Conclusion

22 Further Discussion and Research

23 Acknowledgments

24 Literature Cited

26 Appendix
1

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Introduction

The Tongass Timber Reform Act (TTRA, 1990) states that the Secretary of 

Agriculture will “...seek to provide a supply of timber from the Tongass National 

Forest which (1) meets the annual market demand for timber from such forest and 

(2) meets the market demand for timber from such forest for each planning cycle.” 

Since 1990, analyses to estimate this market demand to support planning on the 

Tongass have been performed by the Pacific Northwest Research Station. Typically, the analysis involves developing projections of alterative future scenarios 

that could affect demand for timber from the forest. One such scenario is based 

on expanding biomass energy markets. To that end, we used the methods from an 

earlier report (Brackley et al. 2010) to estimate the volume of wood required to 

meet existing and potential new demand for wood energy products in Alaska. This 

information will serve as an update to the previous report, and also will inform a 

biomass energy scenario for the Tongass timber demand study, based on a stated 

Forest Service goal of replacing 30 percent of heating oil use in southeast Alaska 

with wood-based energy over time (Deering 2014). Note that we make no assumptions about the feasibility or desirability of this management action compared to 

other planning options. 

The topic of bioenergy receives a lot of attention in Alaska; biomass industry 

development is viewed as a solution for a multitude of problems. Wood energy 

could provide opportunities for developing markets for low-grade and utility logs, 

as well as logging and mill residues that have been left in the woods since the pulp 

mills closed in the 1990s. Creating an integrated forest industry that can utilize 

both low- and high-grade material could make forestry operations more profitable 

by generating and diversifying additional revenue streams. Similarly, an integrated 

industry results in better utilization of mill residues, which lowers per-unit operating costs (Brackley et al. 2006). Alexander et al. (2010) identified energy costs 

and the disparity of access to affordable and reliable energy as a major barrier to 

developing an integrated forest products industry in Alaska. Wood energy also 

helps the state meet its own renewable energy goal of generating 50 percent of 

the state’s electricity from renewable sources by 2025 (Renewable Energy Alaska 

Project 2015).

Wood-based energy is viewed as a viable alternative to the high costs of heating 

oil and electricity in some parts of the state. Alaska has some of the highest electricity and heating oil prices in the Nation. This is not surprising because Alaska is 

large, and many of its communities are remote, sparsely populated, and located far 

from road systems. These factors lead to high transportation costs for heating fuel 

and electricity. Nevertheless, Alaska produces a higher percentage of its electricity 

The biomass industry 

development is viewed 

as a solution for a 

multitude of problems.
2

GENERAL TECHNICAL REPORT PNW-GTR-928

from petroleum than almost any other state because many remote rural communities use diesel fuel to generate electricity (ISER 2014). A large proportion of homes 

across rural Alaska use an oil furnace, stove, or boiler as their primary heating 

system. In addition, heating costs are highly variable across the state. Although 

this report focuses on residential consumption, these factors likewise apply to the 

commercial and industrial sectors. 

This analysis, as in the previous study, focuses on demand for fuel for residential space heating. Although about one third of homes in the entire state were heated 

by fuel oil in 2011, this figure is even higher in the southeast portion of the state 

(AEA 2011). Electric heating was a distant second in southeast Alaska at 16 percent, 

but this was still greater than the 10-percent figure for the state as a whole. Only 

4 percent of homes in southeast Alaska used natural gas or propane. Combined, 

86 percent of homes in southeast Alaska use either fuel oil or electricity as their 

primary fuel source. The cost of heating oil is particularly volatile and depends on 

many factors unique to Alaska. A report by the Institute of Social and Economic 

Research at the University of Alaska Anchorage studied the price of delivered fuel 

oil to ten Alaska communities, including communities in southeast Alaska, and 

found that prices in some areas were more than 100 percent higher than elsewhere 

in the state (Saylor et al. 2008). 

Space heating is also an issue, owing to concerns that widespread adoption of 

electric space heating will increase the load on hydroelectric facilities to an unsustainable level. About 50 hydroelectric power plants supply Alaskan communities 

with electricity, providing about one-fifth of the state’s total electricity generation. 

The majority of the state’s developed and proposed sites for hydroelectric facilities 

are located near communities in the south-central, Alaska Peninsula, and southeast 

areas of the state. Communities supplied with hydropower include Cordova, Glennallen, Haines, Juneau, Ketchikan, Kodiak, Petersburg, Sitka, Skagway, Wrangell, 

and Valdez. In communities in which hydroelectric power is available, conversion 

from heating oil to electricity for space heating has been common in recent years, 

spurred by the lower relative cost of hydroelectric power. The increasing load on 

hydroelectric facilities has led to proposals to increase hydroelectric generation 

capacity and storage through expanding existing facilities and new construction. 

However, environmental concerns and high capital costs are substantial barriers. 

An economic analysis performed by the University of Alaska presented capital cost 

estimates and benefit/cost ratios for expanding hydroelectric power for 30 Alaskan 

communities. The report found that the high capital cost of hydropower (both 

absolute and especially on a per-kilowatt basis for smaller projects) was the chief 

Combined, 86 percent 

of homes in southeast 

Alaska use either 

fuel oil or electricity 

as their primary 

fuel source.
3

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

impediment to economic feasibility, although results were modestly sensitive to 

assumptions about rising heating fuel prices (Crimp et al. 2008). 

Given the key issues of price, availability, and sustainability of energy 

resources in Alaska, as well as the pressures they create at the household level, 

reliable estimates of potential renewable resource demand are particularly timely. 

The remainder of this report describes the objectives, methods, and results of our 

estimation. 

Objectives

The goal of this analysis, as in Brackley et al. (2010), is to develop estimates of 

potential demand for wood energy products in Alaska. Our motives and focus are 

somewhat different, as this analysis will also be used to support forest plan amendment on the Tongass National Forest. Like Brackley’s study, data constraints led us 

to focus on residential demand, although anecdotal evidence and local media coverage suggest that wood energy adoption by commercial businesses has increased 

(Grass 2012, Nicholls 2009). We relied primarily on the methodology described in 

the Brackley study to update estimates for:

• Sources of energy consumed by sector of the Alaska economy.

• Number and proportion of occupied residential units using all heating fuel 

types. 

• Residential heating oil use in Alaska. 

• Estimated volume of firewood consumed by the residential sector annually 

in Alaska.

• Average heating costs of occupied residential housing units by heating fuel 

type. 

• Cost comparison per British thermal unit (Btu) of alternative sources of 

energy used in Alaska to find situations in which wood energy is an economically viable replacement for fossil fuels.

• Volume of wood or pellets required to replace fossil fuels used in the residential sector.

• Potential economic motivation for, and benefits of, conversion from fuel-oil 

space heating to wood-energy space heating. 

Methods

This analysis is based on the most recent data published by the U.S. Census Bureau 

(USDC BC) and U.S. Energy Information Administration (USDE EIA) for the State 

of Alaska. The Census Bureau’s American Community Survey for 2012 provides 

statistics on number of households and the type of energy consumed by census 

tract. Census tracts in Alaska are shown in figure 1, along with the proportion of 
4

GENERAL TECHNICAL REPORT PNW-GTR-928

land in Alaska in federal ownership. The EIA’s State Energy Data System maintains 

an annual series of fuel consumption, prices, and expenditure estimates based on 

surveys of energy suppliers and various energy type-specific reports. 

We present both additions to and deviations from the previous analysis, building on the work of Brackley et al. (2010) in several ways. The 2012 census data, 

combined with annual reported EIA data, allowed us to update statistics for energy 

use in Alaska that can be compared with the previous study. As in Brackley’s 2010 

study, we focused on the potential for Alaskan homeowners to replace distillate 

fuel use with wood energy products. Because the Tongass Land Management 

Plan amendment effort requires information pertaining specifically to southeast 

Alaska, we expanded several tables to include census area-level data adjusted for 

differences in climate across the state. We also expanded the analysis of fuel price 

equivalency to compare wood energy products to distillate fuels, natural gas, and 

electricity. 

Our methodology diverges from Brackley et al. (2010) at two key points. First, 

we added explicit equipment efficiency assumptions for distillate-heated homes 

when calculating fuel energy equivalence. Second, we omitted the adjustments of 

Figure 1—Census tracts and federal land ownership in Alaska.

e

n

r 

0 130 260 520 Miles

Kodiak 

Island

Lake and Peninsula Lake and Peninsula

Dillingham

Bethel

Kusilvak

Kodiak Island

Hoonah

-Angoon

Hoonah-

 Angoon Kenai 

Peninsula

Prince of Wales–

Hyder

Wrangell

Sitka

Juneau

Haines

Yakutat Anchorage

Valdez-

 Cordova

Matanuska-

 Susitna

MatanuskaSoutheast 

 Fairbanks

Fairbanks 

 North Star

Denali

Nome

Northwest Arctic

Yukon-Kayakuk Yukon-Koyakuk

North Slope

Aleutians West

Aleutians East

Skagway

Petersburg

Ketchican

 Gateway

Ketchikan

Bristol Bay

Alaska census tracts and 

federal land ownership

Federal land

Nonfederal land

N
5

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

census information for unoccupied, multi-unit, and mobile dwellings because a 

repeatable method of adjustment for space heating of unoccupied units, the size and 

efficiency of mobile homes, and the heating needs of apartments were not available 

in the literature. Brackley et al. (2010) added half of the unoccupied homes using 

distillate heat to the census counts used in consumption estimates, removed units in 

multiple-occupancy buildings, and subtracted half of the mobile homes for each area. 

Much of the background methodology used herein is discussed in depth in the 

Brackley et al. (2010) report and will only be referenced here. This includes standard conversion factors, energy measurements and units, moisture content calculations, and a review of data sources. We relied heavily on Briggs (1994) for physical 

volume and energy calculations and for conversion factors, the EIA’s State Energy 

Data System for Alaskan energy consumption, and the U.S. Census Bureau’s 

American Community Survey for household units and heating trends across the 

state (USDE EIA 2015d, USDC BC 2008–2012).

Trends in Energy Consumption in Alaska

Figure 2 shows heating oil prices across Alaska in August 2014 (AEDG 2014). 

Setting aside the heavily subsidized prices of far northern regions, households in 

the Northwest Arctic Borough faced the highest price in August—essentially twice 

the price in the Anchorage area. Importantly, the disparity in fuel oil prices in many 

areas of the state provides the economic incentive to switch to a cheaper energy 

source. Significantly wider price variation is apparent at the community level, but is 

not included here. 

Figure 3 shows residential fuel use in Alaska by fuel type for 2004 and 2012 

from Alaska Energy Authority data. In 7 years, the proportion of heating fuels 

consumed by Alaska residents has changed little. Natural gas still dominates; its 

consumption has risen by almost 10 percent. Electricity use has increased by less 

than 1 percent; otherwise, consumption of all other fuel types declined. Statewide, 

wood used for energy in the residential sector actually fell by 2.5 percent. 

Table 1 shows an updated profile for energy consumed in Alaska for each 

economic sector and fuel type. Btu values are derived from reported physical units 

of consumption and conversion factors for each fuel type. This updated consumption profile contains several notable developments since the Brackley et al. (2010) 

publication. Statewide total energy consumption fell by roughly 20 percent between 

2004 and 2012 (799 versus 637 trillion Btu, respectively). The reduction was mostly 

led by declines in the commercial and industrial sectors. In terms of absolute values, distillates were the only fuels of which consumption actually increased; since 

2004 distillate fuel use rose from 9 to 13 percent. The residential sector accounted 

The disparity in fuel oil 

prices in many areas 

of the state provides 

the economic incentive 

to switch to a cheaper 

energy source.
6

GENERAL TECHNICAL REPORT PNW-GTR-928

Figure 3—Comparison of 2004 and 2012 residential energy use.

Figure 2—Heating oil prices by Alaska Census Tract, 2014.

6.20

1.59

6.77

7.63

4.25

6.10

4.50

3.87

6.31

6.54

6.67

4.41

4.41

3.94

5.68

4.88

4.43

5.02

4.56

4.28

4.17

4.32

3.83

4.21

4.23

5.95

5.96

0 120 240 480 Miles

6.20

1.59

6.77

7.63

4.25

6.10

4.50

3.87

6.31

6.54

6.67

4.41

4.41

3.94

5.68

4.88

4.43

5.02

4.56

4.28

4.17

4.32

3.83

4.21

4.23

5.95

5.96

0 120 240 480 Miles

6.20

1.59

6.77

7.63

4.25

6.10

4.50

3.87

6.31

6.54

6.67

4.41

4.41

3.94

5.68

4.88

4.43

5.02

4.56

4.28

4.17

4.32

3.83

4.21

4.23

5.95

5.96

s

N

Distillates and LPG 25.97% 

Natural gas

46.64% 

2004

Coal 1.98%

Other 0.41%

Natural gas

54.99% 

2012

Electricity

17.96% Electricity

18.74% 

Wood 4.54%

Other 0.36%

Coal 0%

Wood 7.03%

Distillates and LPG 21.37% 
7

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

for 7 percent of all fuel consumed. Although the residential sector increased their 

share of total consumption by almost 3.5 percent, distillate use declined by almost 

4 percent to 1.3 trillion Btus. As in Brackley et al. (2010), we calculated the power 

generated from fossil fuels and assigned those Btus to the residential, commercial, 

and industrial sectors in proportion to their total electricity consumption.

We defined distillate fuels as the combination of fuel oil, kerosene, and liquefied petroleum gas. Table 2 shows the number of occupied housing units by fuel 

type for each Alaska borough or Census Bureau tract. As noted above, home 

heating is largely characterized by distillate fuel consumption in much of the state, 

accounting for more than half of home heating in 24 of 29 census areas. Electric 

and natural gas heating likewise represent a large share of occupied homes in many 

Table 1—Sources of energy consumed by various sectors of the Alaska economy, 2012

Alaska

Source distribution Residential Commercial Industrial Transport Electric Total

Percent - - - - - - - - - - - - - - - - - - - - - - - Trillion Btu - - - - - - - - - - - - - - - - - - - - - - - -

Asphalt/road oila

 Aviation 0.13 — — — 0.8 — 0.8

 Biomass 0.36 1.9 0.3 0.1 — — 2.3

 Coal 2.43 0 9.4 0.1 0 6 15.5

 Distillate fuel 13.34 8.1 10.1 19.2 44.4 3.3 85.1

 Ethanol 0 — — — — — 0

 Hydroelectric 2.05 4.45 5.91 2.74 — — 13.1

 Jet fuel 18.53 — — — 118.2 — 118.2

 Kerosene 0.03 0.1 0.1 — — — 0.2

 LP gas 0.20 0.5 0.7 0.1 — 1.3

 Lubricants 0.06 — — — 0.4 — 0.4

 Motor gas 5.42 0.7 1 32.9 — 34.6

 Natural gas 52.84 20.5 16.9 253.8 3.5 42.3 337

 Otherb 0.05 0.1 0.1 0 — 0.1 0.3

 Other petroleum 4.25 — — 27.1 — 0 27.1

 Residual fuel 0.30 — 0 0 0.4 1.5 1.9

Subtotal 100.00 38.5 48 305.9 200.6 66.3 637.8

Fossil-fuel-based 2.85 3.79 1.76 8.4

 electricity consumedc

Total energy consumption 41.35 51.79 307.66

Electricity sold to sectord 7.3 9.7 4.5 21.5

LP = liquefied petroleum.

a

 Part of other petroleum.

b

 Wind, geothermal, etc.

c

 Calculated by first subtracting hydropower from the total electricity sold to sectors, then distributing the residual fossil electricity among the 

residential, commercial, and industrial sectors according to their portion of total electricity sales.

d

 Energy Information Administration data.

We defined distillate 

fuels as the 

combination of fuel 

oil, kerosene, and 

liquefied petroleum 

gas.
8

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 2—Number and proportion of occupied residential units in Alaska using all heating fuel types by 

Census Bureau tract, 2012. (continued)

Region

Borough or 

census areaa Distillate fuelsb Natural gas Wood Electricity Otherc

Total 

occupied 

units

Number Percent Number Percent Number Percent Number Percent Number Percent Number

Aleutians 

and Arctic

Aleutians 

East

367 93.15 6 1.52 10 2.54 10 2.54 1 0.25 394

Aleutians 

West

892 90.01 4 0.40 20 2.02 46 4.64 29 2.93 991

Kusilvak 1,334 78.29 27 1.58 312 18.31 26 1.53 5 0.29 1,704

Nome 2,552 92.06 29 1.05 115 4.15 57 2.06 19 0.69 2,772

North Slope 688 34.56 1,234 61.98 0 0 64 3.21 5 0.25 1,991

Northwest 

Arctic

1,625 88.80 35 1.91 108 5.90 54 2.95 8 0.44 1,830

YukonKoyukuk1,024 49.68 22 1.07 982 47.65 13 0.63 20 0.97 2,061

Total and 

percentage

8,482 72.23 1,357 11.56 1,547 13.17 270 2.30 87 0.74 11,743

Greater 

Anchorage

Anchorage 2,964 2.81 87,145 82.59 690 0.65 14,004 13.27 714 0.68 105,517

Kenai 

Peninsula

7,819 35.60 10,350 47.12 2,313 10.53 1,289 5.87 193 0.88 21,964

MatanuskaSusitna5,102 16.50 21,428 69.29 2,230 7.21 1,882 6.09 281 0.91 30,923

ValdezCordova2,751 74.23 98 2.64 763 20.59 64 1.73 30 0.81 3,706

Total and 

percentage

18,636 11.50 119,021 73.42 5,996 3.70 17,239 10.63 1,218 0.75 162,110

Greater 

Fairbanks

Denali 420 58.58 15 2.09 172 23.99 9 1.26 101 14.09 717

Fairbanks 

North Star

28,064 78.52 1,850 5.18 2,352 6.58 2,279 6.38 1,195 3.34 35,740

Southeast 

Fairbanks

1,297 54.04 55 2.29 858 35.75 161 6.71 29 1.21 2,400

Total and 

percentage

29,781 76.64 1,920 4.94 3,382 8.70 2,449 6.30 1,325 3.41 38,857

Southeast Haines 687 60.32 46 4.04 381 33.45 25 2.19 0 0 1,139

Juneau 8,761 71.09 225 1.83 501 4.07 2,688 21.81 148 1.20 12,323

Ketchikan 

Gateway

3,663 68.25 96 1.79 389 7.25 1,152 21.46 67 1.25 5,367

Prince of 

Wales-Hyder

1,253 54.69 15 0.65 776 33.87 238 10.39 9 0.39 2,291

Sitka 2,280 62.93 37 1.02 209 5.77 1,058 29.20 39 1.08 3,623

Skagway 336 24.10 17 1.22 30 2.15 8 0.57 1,003 71.95 1,394

HoonahAngoon673 67.37 31 3.10 282 28.23 4 0.40 9 0.90 999

Wrangell 444 38.28 24 2.07 287 24.74 392 33.79 13 1.12 1,160

Petersburg 917 54.88 77 4.61 273 16.34 401 24.00 3 0.18 1,671

Yakutat 218 84.17 10 3.86 20 7.72 10 3.86 1 0.39 259

Total and 

percentage

19,232 63.63 578 1.91 3,148 10.41 5,976 19.77 1,292 4.27 30,226
9

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

areas. Note that the share of homes heated with either wood or electricity in regions 

with access to inexpensive hydroelectric power and fuelwood are characterized by 

higher proportional use of each. Wood and electrical heating are commonly used in 

several areas in southeast Alaska.

Table 3 shows estimates of average residential distillate fuel use per occupied 

housing unit by Census Bureau tract. Despite the differences in the housing unit 

count between this analysis and Brackley et al. (2010), these per household and 

regional estimates are similar to the previous study. Following Brackley et al. 

(2010), the estimates of average Btu per home were calculated by applying the state 

average—adjusted to account for variation in regional temperatures—to the total 

number of homes using distillates in each area. The state average was first calculated by dividing the total consumption of distillate fuels (heating oil; kerosene; and 

bottle, tank, or liquefied petroleum gas) from the EIA (2012) by the total number of 

occupied Alaska homes using those fuels as their primary source of heat. The state 

average was then adjusted for heating degree days, using 65 °F basis, in each census 

area. This degree day adjustment accounts for regional differences in energy costs 

owing to the extreme temperature variation experienced across the state (Alaska 

Climate Research Center 2014). 

Table 3 illustrates the need to adjust regional fuel consumption for climate. 

First, consider the energy needs of the state’s coldest areas. According to the 

census, 688 occupied housing units in the North Slope used distillate fuels as their 

primary heat source in 2012. Simply multiplying the state average fuel consumption 

per home to these units (roughly 99 million Btu) would likely underestimate total 

distillate consumption in this particularly cold area because it assumes that the 

Table 2—Number and proportion of occupied residential units in Alaska using all heating fuel types by 

Census Bureau tract, 2012. (continued)

Region

Borough or 

census areaa Distillate fuelsb Natural gas Wood Electricity Otherc

Total 

occupied 

units

Number Percent Number Percent Number Percent Number Percent Number Percent Number

Southwest Bethel 3,727 86.53 8 0.19 464 10.77 100 2.32 8 0.19 4,307

Bristol Bay 365 97.33 0 0 5 1.33 0 0 5 1.33 375

Dillingham 1,144 85.76 29 2.17 134 10.04 18 1.35 9 0.67 1,334

Kodiak Island 3,644 81.56 159 3.56 198 4.43 390 8.73 77 1.72 4,468

Lake and 

Peninsula

464 81.40 9 1.58 80 14.04 13 2.28 4 0.70 570

Total and 

percent

9,344 84.53 205 1.85 881 7.97 521 4.71 103 0.93 11,054

State total and percentage 85,475 33.65 123,081 48.46 14,954 5.89 26,455 10.42 4,025 1.58 253,990 a Airport or other degree day location.

b

 Fuel oil; kerosene; and liquefied petroleum gas.

c

 Coal, wind, or geothermal.

This degree day 

adjustment accounts 

for regional differences 

in energy costs 

owing to the extreme 

temperature variation 

experienced across the 

state.
10

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 3—Residential distillate fuel use in Alaska by Census Bureau Tracts, 2012 

Region Borough or census areaa Housing units Heating degree daysb Btu per home

Aleutians and Arctic Aleutians East 367 9,557 88,684,434.91

Aleutians West 892 8,781 81,483,522.33

Kusilvak 1,334 13,965 129,588,587.79

Nome 2,552 13,703 127,157,351.84

North Slope 688 19,399 180,013,534.88

Northwest Arctic 1,625 15,385 142,765,515.44

Yukon-Koyukuk 1,024 14,227 132,019,823.74

Total and average 8,482 125,958,967.28

Greater Anchorage Anchorage 2,964 10,194 94,595,493.30

Kenai Peninsula 7,819 10,508 97,509,264.63

Matanuska-Susitna 5,102 10,301 95,588,402.64

Valdez-Cordova 2,751 9,973 92,544,717.94

Total and average 18,636 95,059,469.63

Greater Fairbanks Denali 420 12,867 119,399,667.68

Fairbanks North Star 28,064 13,666 126,814,009.36

Southeast Fairbanks 1,297 13,157 122,090,730.37

Total and average 29,781 122,768,135.80

Southeast Haines 687 8,730 81,010,266.48

Juneau 8,761 8,351 77,493,325.93

Ketchikan Gateway 3,663 7,262 67,387,921.56

Prince of Wales-Hyder 1,253 6,883 63,870,981.01

Sitka 2,280 7,191 66,729,075.17

Skagway 336 8,423 78,161,451.84

Hoonah-Angoon 673 7,980 74,050,621.60

Wrangell 444 7,458 69,206,708.75

Petersburg 917 7,954 73,809,353.91

Yakutat 218 9,018 83,682,770.12

Total and average 19,232 73,540,247.64

Southwest Bethel 3,727 12,518 116,161,112.92

Bristol Bay 365 10,880 100,961,248.49

Dillingham 1,144 11,216 104,079,169.40

Kodiak Island 3,644 8,794 81,604,156.18

Lake and Peninsula 464 10,537 97,778,370.90

Total and average 9,344 100,116,811.58

State total and average 85,475 10,651 98,835,916.93

a

 Airport or other degree day location.

b

 Source: Alaska Climate Research Center (2014).
11

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

heating needs of homes in cold areas are equal to those of homes in more temperate 

areas. This can be seen most clearly by comparing the sparsely populated Aleutians 

and Arctic (AA) region with southeast Alaska, which has a relatively denser population and milder climate. Without adjusting for climate differences, southeast Alaska 

(with more than twice the distillate-using homes as the AA region) would appear to 

consume more than twice the heating fuel each year than its colder northern counterpart; accounting for climate differences reveals essentially the opposite relationship. In fact, 75 percent of households in the Fairbanks region are heated primarily 

with distillates. Still, total usage in that region was less than the AA region, despite 

the nearly 20,000 fewer homes using distillates for primary heat. 

Table 4 contains estimates of firewood volume consumed annually in Alaska 

based on occupied household Btu values derived from the USDE EIA (2015d), the 

U.S. Census Bureau (2008–2012), Nicholls et al. (2010), and conversion factors 

found in Briggs (1994). In 2012, Alaskan households consumed roughly 89,000 

cords of firewood and nearly 15,000 homes were primarily heated with wood fuel. 

The regional values in table 4 were calculated by adjusting the statewide consumption of 89,000 cords using the process described earlier for estimating distillate 

consumption. First, statewide average per-home consumption was calculated by 

dividing total statewide consumption by the Census Bureau’s count of households 

Table 4—Estimated volume of firewood consumed by the residential sector annually in Alaska 

by region

Region 

Number of homes 

using wood as 

primary heat 

source

Primary heat, 

firewood purchaseda,b

Number of homes 

using wood as 

secondary heat sourcec

Potential additional 

secondary heat, 

firewood estimatedd

Cords Tons Cords Tons

Aleutians and Arctic 1,547 11,564 28,909 2,020 4,040 10,100

Greater Anchorage 5,996 33,824 84,561 30,921 61,842 154,605

Greater Fairbanks 3,382 24,640 61,599 9,704 19,408 48,520

Southeast 3,148 13,738 34,346 5,876 11,752 29,380

Southwest 881 5,234 13,086 2,207 4,414 11,035

 Total 14,954 89,000 222,500 50,729 101,458 253,645

a

 Calculated from climate-adjusted state average per-home consumption (USDC BC 2014, USDE EIA 2014).

b

 Assumes 2.5 tons per cord. 

c

 Estimated from Robb (2007) survey data.

d

 Assumed consumption of two cords per household per year.
12

GENERAL TECHNICAL REPORT PNW-GTR-928

using wood as a primary heat source. We then adjusted this average by degree days 

to account for regional climate variation before applying it to the number of woodheated homes in each region.1

 Weight equivalents assume 2.5 tons of material per 

cord, which tends to overstate the weight of a softwood cord (Brackley 2006). Note 

that our methodology assigns all 89,000 cords of wood reported in the EIA data to 

households using wood as their primary heating source. 

The Census Bureau’s home heating data does not include homes using wood as 

a secondary heat source. A survey conducted by the Fairbanks Economic Development Council in 2007 estimated the number of homes in Alaska using wood for 

secondary heating (Robb 2007). The survey of households in the southeast, southcentral, and Fairbanks regions of the state found that 22 percent, 20 percent, and 

27 percent, respectively, reported using wood as a secondary heating fuel. Because 

the survey was conducted in three of the five regions examined here, we applied 

the southeast region’s 22-percent secondary use to the southwest region, and the 

Fairbanks region’s 27 percent to the Aleutians and Arctic regions in lieu of survey 

data to estimate the number of households using wood as a secondary heat source. 

Like Brackley et al. (2010), we attempted to estimate wood usage by assuming that 

secondary use amounted to burning two cords of firewood per year. As evident in 

table 4, this conservative approach yielded volume estimates for secondary heating 

that were greater than the statewide total wood consumption reported by the EIA. 

Even assuming one cord per year, the volume of potentially unaccounted wood is 

substantial. 

These results suggest some limitations with EIA data. Wood consumption data 

are limited because they include only fuel wood that is purchased. In forested areas, 

firewood gathering is commonplace, but the volume of wood consumed in this 

manner is not recorded in EIA statistics. Another limitation is that data are lacking 

on the wood consumption patterns of households heated primarily by natural gas or 

fuel oil but supplemented by a fireplace or wood stove. Thus, the reported volume 

of firewood consumption, 89,000 cords, very likely understates the volume of wood 

actually consumed for heat in Alaskan households. 

1 Mathematically, this allocation process produces regional totals that sum to a state total 

slightly lower than the original statewide total. This small residual (approximately 2,700 cords) 

was distributed to each region proportionally to its estimated share of statewide consumption. 
13

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Table 5—Average annual heating costs of occupied residential housing units by Alaska 

census region and heating fuel type.

Region

Average energy 

requirements Fuel type

Units per 

yeara Unit

Price 

per unit Annual cost

Btu U.S. dollars

Aleutians and 

Arctic

125,958,967.28 Distillateb 917 Gallons 4.05 3,723.35

LP gas 1,490 Gallons 3.25 4,844.38

Natural gas 123.25 mcf 8.55 1,054.28

Wood 6.30 Cord 338.80 2,133.74

Electricity 36,916.46 kWh 0.18 6,601.51

Greater 

Anchorage

95,059,469.63 Distillate 693 Gallons 4.05 2,809.96

LP gas 1,125 Gallons 3.25 3,655.99

Natural gas 93.01 mcf 8.55 795.65

Wood 4.75 Cord 338.80 1,610.31

Electricity 27,860.34 kWh 0.18 4,982.07

Greater 

Fairbanks

122,768,135.80 Distillate 895 Gallons 4.05 3,629.03

LP gas 1,452 Gallons 3.25 4,721.66

Natural gas 120.13 mcf 8.55 1,027.57

Wood 6.14 Cord 338.80 2,079.69

Electricity 35,981.28 kWh 0.18 6,434.28

Southeast 73,540,247.64 Distillate 536 Gallons 4.05 2,173.85

LP gas 870 Gallons 3.25 2,828.36

Natural gas 71.96 mcf 8.55 615.53

Wood 3.68 Cord 338.80 1,245.77

Electricity 21,553.41 kWh 0.18 3,854.24

Southwest 100,116,811.58 Distillate 730 Gallons 4.05 2,959.45

LP gas 1,184 Gallons 3.25 3,850.49

Natural gas 97.96 mcf 8.55 837.98

Wood 5.01 Cord 338.80 1,695.98

Electricity 29,342.56 kWh 0.18 5,247.12

Btus = British thermal units; LP = liquefied petroleum; mcf = thousand cubic feet; kWh = kilowatt-hours.

a Calculated using Energy Information Administration (EIA) conversion values published for 2012.

b Average of fuel oil and kerosene price from the EIA.

Cost Comparisons for Alternative Energy Sources

To consider adopting wood energy products, a consumer must be able to compare 

the costs of alternative forms of energy used to produce a unit of heat. Table 5 

illustrates the average cost to heat an occupied housing unit in Alaska by fuel type 

and region. We began with the average amount of energy (in Btus) required by 

distillate-heated homes from table 3 above. Using 2012 energy conversion factors 

from the EIA, we calculated the equivalent number of physical units (such as barrels or cords) of each alternative fuel necessary to match that requirement (USDE 
14

GENERAL TECHNICAL REPORT PNW-GTR-928

EIA 2014). Fuel prices were available only at the state level; the average statewide 

price per fuel type was thus multiplied by the units of each fuel type to arrive at the 

annual heating cost. 

Table 5 shows that variation across fuel usage and costs is considerable. 

Although natural gas is consistently the least expensive alternative in regions with 

access to it, wood-based heating is considerably cheaper than heating with distillate 

fuels; liquefied petroleum gas; or electricity in every region. Regional variation in 

costs is evident as well. Heating cost estimates for all fuels are generally higher 

for the coldest parts of the state. In the colder climate of the Aleutians and Arctic 

region, for example, the potential savings exceeds $1,600 per year. In southeast 

Alaska, a home using fuel oil could save $928 annually by switching to wood heat. 

Next, we examined the relative costs of home heating by comparing the cost 

of energy recoverable from wood against three alternative fuels over a range of 

potential prices. Distillates, natural gas, and electricity were compared to cordwood and wood pellets.2

 For cordwood, we assumed that a cord would be burned 

in a unit with 60-percent combustion efficiency.3 For pellets, we assumed they had 

6.5-percent moisture content and 80-percent combustion efficiency. Figures 4, 5, 

and 6 show the cost comparisons between wood and heating oil, wood and natural 

gas, and wood and electricity, each converted into units typically purchased by 

consumers. Each figure shows a range of heating fuel prices and the equivalent 

price of a cord of wood and ton of wood pellets. Supporting tables 8 through 13 

in the appendix display the price equivalent of cordwood and pellets across a 

range of prices of heating oil, natural gas, and electricity under two combustion 

efficiency assumptions.

For illustration, consider an Alaska household choosing between heating oil and 

a wood energy alternative. Table 6 reproduces regional heating oil prices published 

in the most recent Alaska Fuel Price Report (ADCCED 2015). The average price 

for a homeowner in the southeast region was $4.46 per gallon as of January 2015. 

Suppose a homeowner would like to compare the price of heating oil to that of 

cordwood and wood pellets. Graphically, the heating oil price appears in figure 4 as 

a vertical “break-even” line beyond which it is more economical to remain with fuel 

oil. Thus, a cost-minimizing consumer in southeast Alaska facing a price of $4.46 

per gallon is better off choosing a wood fuel at a price below the break-even line at 

2 The costs of these fuels are not compared to each other in table 6 (for instance, comparisons were made between natural gas and wood and electricity and wood, but not between 

natural gas and electricity). A rough comparison can be made with the estimates in table 5.

3 The recoverable heating value of a cord of wood is constant across a range of moisture 

contents, unlike values for weight measurements. As a cord dries, it gains gross heating 

value but loses weight. Recoverable heat is a function of both inputs. 

Variation across fuel 

usage and costs is 

considerable. 
15

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Southeast

Alaska

price

($4.46)

Interior

Alaska

price

($5.80)

Price of distillate fuel (U.S. dollars per gallon)

2.002.503.003.504.004.505.005.506.006.507.007.508.008.509.009.50

10.00

10.50

1,200

1,000

800

600

400

200

0

Equivalent price (U.S. dollars)

Wood pellets

Green cordwood

Figure 4—Equivalent prices for distillate fuels and wood energy products, January 2015. 

Figure 5—Equivalent prices for natural gas and wood fuels price equivalency, November 2014.

Average

Alaska

price

($9.22/tcf)

Price of natural gas (U.S. dollars per thousand cubic feet)

6.006.507.007.508.008.509.009.50

10.0010.50

11.00

11.50

12.00

12.5013.0013.5014.00

14.50

250

200

150

100

50

0

Equivalent price (U.S. dollars)

Wood pellets

Green cordwood
16

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 6—Alaska regional heating oil prices in dollars per gallon, January 2015

Gulf 

Coast Interior Northern Northwest Southeast Southwest Western

High 6.96 11.00 3.00 7.22 5.67 8.21 7.40

Low 3.11 3.05 1.40 4.90 3.68 3.68 5.36

Average 4.55 5.80 1.89 6.35 4.46 5.67 6.57

Figure 6—Equivalent prices for electricity and wood energy products, November 2014.

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Equivalent price (U.S. dollars)

Average

Alaska

price

($0.195/kwh)

Price of electricity (U.S. dollars per kilowatt-hour)

0.060.100.140.180.220.260.300.340.38

Wood pellets

Green cordwood

that price, which table 8 (see app.) shows to be $458 for a cord of firewood and $485 

for a ton of pellets. Another household in Alaska’s interior region would save money 

with either cordwood or pellets at a price below about $585 per cord and $620 per 

ton, respectively. 

Natural gas prices for the residential sector are available only at the state level. 

The most recent reported price of natural gas delivered to residential consumers 

in Alaska was $9.22 per thousand cubic feet (tcf) in November 2014 (USDE EIA 

2015a). Figure 5 suggests that homes using natural gas as a primary heat source 

have a significant price advantage over wood fuels. The break-even prices for 

cordwood at $120 per cord and $127 per ton of pellets (again assuming 60-and 

80-percent combustion efficiency, respectively) are roughly one-third and one-half 

Figure 5 suggests that 

homes using natural 

gas as a primary 

heat source have 

a significant price 

advantage over 

wood fuels.
17

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

their actual current prices. For natural gas to be as costly as wood energy, the price 

would have to rise to about $20 per tcf. EIA data going back to 1990 show that the 

highest residential natural gas price ever recorded in Alaska was $12.00 per tcf. 

Residential electricity prices are also available only at the state level. The state 

average price of electricity was 19.5 cents per kilowatt hour (kwh) in November 

2014.4 making wood fuels a cheaper choice for many Alaskan homes (USDE EIA 

2015b). Figure 6 shows that, at a price of $0.195 per kwh, a home heated primarily 

with electricity would face a break-even price of $760 per cord and $807 per ton 

of pellets. This state average electricity price does not account for the significant 

disparity in electricity prices between communities with and without access to 

inexpensive hydropower. For homes facing the state’s highest electricity prices, the 

potential savings from switching to wood fuels can be substantial; for those homes 

purchasing hydro-generated power, electric heat may be the cheaper form of energy. 

The Impact of Combustion Efficiency

Combustion efficiency is a measurement of how well the fuel being burned is being 

utilized in the combustion process. The combustion efficiency assumptions in 

figures 4, 5, and 6 greatly affect the estimated break-even price at which cost-minimizing consumers would be prompted to switch fuels, as well as to choose between 

cordwood and pellet systems. For our calculations, we used liberal efficiency values 

for an oil-burning heating unit (85 percent) and conservative efficiency values for 

cordwood or pellet-burning units (60 and 80 percent, respectively). This combination sets the break-even line much higher than would be faced by many homes, 

particularly those with newer wood systems. For illustration, figure 7 shows how 

the relationship between heating oil, cordwood, and pellet prices is affected by the 

assumed combustion efficiency of a cordwood system. Recall the southeast Alaska 

home facing an average heating oil price of $4.46 per gallon discussed above. If 

the homeowner was faced with a choice to install a new wood stove that operated 

at 80-percent efficiency or a unit operating at 60-percent efficiency, the threshold 

for switching from fuel oil would jump from $458 to $610 per cord (well above 

typical prices). In addition, a densified wood pellet system operating at 80-percent 

efficiency would generate greater savings than a cordwood system operating at 

60-percent efficiency. So if the purchase price for a ton of wood pellets is $270, fuel 

oil must cost less than $2.50 per gallon to remain competitive. As of January 2015, 

only the southeast and heavily subsidized northern region had a heating oil price 

less than $4.50 per gallon. 

4 This is a statewide average, which includes those areas affected by Alaska’s power cost 

equalization program.

Combustion efficiency 

is a measurement of 

how well the fuel being 

burned is being utilized 

in the combustion 

process.
18

GENERAL TECHNICAL REPORT PNW-GTR-928

As in the Brackley et al. (2010) study, the price comparisons in this section and 

in the appendix tables have identified households using primarily heating oil as 

those with the greatest incentive to switch to wood fuels. If a household can freely 

switch between heating systems, the cost savings is substantial in many parts of the 

state. Next, we estimated the total volume of cordwood and wood pellets needed to 

replace the energy used by distillate-heated homes. 

Potential Demand for Wood for Residential Heating 

in Alaska

Estimating the volume of wood necessary to heat homes currently heated with 

distillates began with the number of households using distillate fuels from table 3 

above. Continuing the previous assumptions that distillate fuel heating equipment 

is 85-percent efficient, cordwood heating equipment is 60-percent efficient, and 

pellet heating equipment is 80-percent efficient, we calculated the total number of 

therms that would need to be replaced with wood energy in each census area. The 

maximum amount of wood-derived energy required to heat these households was 

calculated by multiplying the average energy (in therms) required to heat a typical 

home in each census area by the number of homes assumed to make the conversion. 

Conversion factors were applied to calculate the equivalent weight and volume of 

Figure 7—Comparison of equivalent prices for distillate fuels and wood energy products for 60- and 80-percent combustion 

efficiency in cordwood systems. 

1,600

1,400

1,200

1,000

800

600

400

200

0

E

quivalent price (U.S. d

ollars)

Price of distillate fuel (U.S. dollars per gallon)

Southeast

Alaska

price

($4.46) 

2.002.503.003.504.004.505.005.502.002.503.003.504.004.505.005.506.006.50

Wood pellets

Green cordwood, 60-percent efficiency

Green cordwood, 50-percent efficiency

Green cordwood, 80-percent efficiency

The price comparisons 

have identified 

households using 

primarily heating oil as 

those with the greatest 

incentive to switch to 

wood fuels.
19

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

5 Based on the average heating value of common Alaskan tree species. See Brackley et al. 

(2010) for details.

cordwood and pellets necessary to replace the therms of energy provided from 

distillates. The results presented in table 7 represent the maximum potential new 

demand for either cordwood or wood pellets given a total residential conversion 

from distillate fuels. In other words, table 7 shows the number of cords of green 

wood or tons of pellets demanded if every distillate-heated home in Alaska made 

the switch. Statewide, we estimated this maximum to be just over 919,000 tons 

(367,000 cords) of green wood.5 The estimated maximum additional demand for 

wood pellets (dried to 6.5-percent moisture content and burned at 80-percent efficiency) was approximately 590,000 tons. We estimated demand for cordwood and 

pellets separately, but in reality, a portion will likely be captured by each product.

Other Costs of Conversion to Wood Energy Systems

One assumption driving much of this analysis is that Alaskan consumers are able to 

freely switch between heating systems in response to relative changes in fuel costs. 

However, the cost of conversion may be prohibitive for some. In addition to the purchase of equipment such as a wood or pellet stove, homeowners must consider the 

cost and installation of venting systems, decommissioning existing fuel oil tanks, 

and the storage space needed to accommodate a season’s worth of firewood or pellets. Most pellet stoves require some electricity to operate, which may be limiting to 

residents of Alaska’s remote areas. In addition, actually purchasing a new wood or 

pellet stove could be problematic, as destinations in Alaska are sometimes ineligible 

for shipping.

To gain a sense of barriers to switching to wood heating systems, we performed 

a spot check of three major home improvement retailers with a presence in Alaska 

for both the on-site stock of wood and pellet stoves available for purchase as well 

as shipping available to Alaskan residences. An Internet search of retailers Costco, 

Home Depot, and Lowe’s for price, performance, and availability of wood and 

pellet stoves was conducted in February 2015. Costco has two stores in Anchorage 

and one in Juneau. Only three stoves are listed on the Costco website (two wood 

stoves and one pellet stove). The average price and coverage area of these units are 

$1,282 and 2,300 ft2, respectively. At Home Depot, the price of a wood-burning 

stove ranged from $239 to $1,399 to heat 600 to 3,000 ft2. Pellet stove prices ranged 

from $999 to $1,999 for 1,500 to 2,200 ft2 of area heated. Three stores were located 

in Anchorage, with additional locations in Fairbanks, Juneau, the Kenai Peninsula, 

and Wasilla. Lowe’s has five stores in Alaska: three in Anchorage and one each 

in Fairbanks and Wasilla. Prices for pellet stoves ranged from $1,104 to $1,970 for 

One assumption 

driving much of this 

analysis is that Alaskan 

consumers are able to 

freely switch between 

heating systems in 

response to relative 

changes in fuel costs.
20

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 7—Annual volume of cordwood or pellets required to replace distillate fuel used in the 

residential sector in Alaska by census area

Region Borough/census area

Number of 

occupied units using 

distillate fuels

Total energy 

needed for 

conversiona Cordwoodb,c Wood pelletsd

Therms Tons Cords Tons

Aleutians and Arctic Aleutians East 367 276,651 3,330 2,305 2,137

Aleutians West 892 617,808 7,437 5,148 4,773

Kusilvak 1,334 1,469,405 17,689 12,245 11,351

Nome 2,552 2,758,297 33,205 22,986 21,308

North Slope 688 1,052,719 12,673 8,773 8,132

Northwest Arctic 1,625 1,971,949 23,739 16,433 15,233

Yukon-Koyukuk 1,024 1,149,101 13,833 9,576 8,877

Total 8,482 9,295,930 111,906 77,466 71,812

Greater Anchorage Anchorage 2,964 2,383,239 28,690 19,860 18,411

Kenai Peninsula 7,819 6,480,612 78,015 54,005 50,063

Matanuska-Susitna 5,102 4,145,382 49,903 34,545 32,023

Valdez-Cordova 2,751 2,164,019 26,051 18,033 16,717

Total 18,636 15,173,253 182,659 126,444 117,214

Greater Fairbanks Denali 420 426,257 5,131 3,552 3,293

Fairbanks North Star 28,064 30,250,721 364,165 252,089 233,689

Southeast Fairbanks 1,297 1,345,989 16,203 11,217 10,398

Total 29,781 32,022,967 385,499 266,858 247,379

Southeast Haines Borough 687 473,059 5,695 3,942 3,654

Juneau 8,761 5,770,812 69,470 48,090 44,580

Ketchikan Gateway 3,663 2,098,157 25,258 17,485 16,208

Prince of Wales-Hyder 1,253 680,258 8,189 5,669 5,255

Sitka 2,280 1,293,209 15,568 10,777 9,990

Skagway 336 223,229 2,687 1,860 1,724

Hoonah-Angoon 673 423,607 5,099 3,530 3,272

Wrangell 444 261,186 3,144 2,177 2,018

Petersburg 917 575,307 6,926 4,794 4,444

Yakutat 218 155,064 1,867 1,292 1,198

Total 19,232 11,953,888 143,903 99,616 92,344

Southwest Bethel 3,727 3,679,926 44,300 30,666 28,428

Bristol Bay 365 313,232 3,771 2,610 2,420

Dillingham 1,144 1,012,066 12,183 8,434 7,818

Kodiak Island 3,644 2,527,607 30,428 21,063 19,526

Lake and Peninsula 464 385,638 4,642 3,214 2,979

 Total 9,344 7,918,469 95,324 65,987 61,171

 Total 85,475 76,364,507 919,292 636,371 589,920

a

 Adjusted for climate and assuming 85-percent distillate heating equipment efficiency.

b

 Assumes 20 percent moisture content, and 60-percent heating equipment efficiency.

c

 Assumes a gross heating value of 20,000,000 Btu per cord (Energy Information Administration), and 60-percent wood heating 

equipment efficiency.

d

 Assumes 6.5-percent moisture content and 80- percent wood pellet heating equipment efficiency.
21

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

1,500 to 2,200 ft2 of heating area. Wood stove prices at Lowe’s ranged from $395 to 

$1,641 for 600 to 3,000 ft2 of coverage, respectively. We were unable to find information to validate the square feet of coverage claimed by the vendors.

Most stoves listed on store websites were not available for purchase locally, 

nor were they eligible for shipping to Alaska. No stoves were available in stock at 

Costco, but all online purchases were eligible for shipping to Alaska residences for 

an additional charge of $277.70. Of the 28 wood stoves listed on the Home Depot 

website, three could be purchased at the store and only five additional models could 

be shipped to Alaska. Only two of 17 Home Depot pellet stoves were available to 

buy locally and only two others were eligible for shipment to Alaska. Six of eight 

advertised wood stoves at Lowe’s were available locally but none could be shipped 

to Alaska. All six of the pellet stoves listed in the store website were available at the 

store, but again none was eligible for shipping.

We also checked the price of wood pellets and the combustion efficiency ratings 

of pellet and wood stoves. None of the Alaska Costco warehouses had pellets in 

stock when we called, but the customer service representative said that pellets were 

stocked at intermittent intervals during the winter. Forty-pound bags of pellets were 

available in stock at Home Depot for $5.88 and $5.98 at Lowe’s. Information on 

the combustion efficiency of stoves was rare; only two of the 62 total models found 

during the Web search provided stove efficiency ratings. Several small models were 

listed as “mobile home approved,” supporting our decision to include mobile homes 

in our count of residential households.

Conclusion

The results described above suggest that the maximum potential annual demand 

for renewable wood energy products to replace distillate fuels for heating in the 

residential sector of Alaska is about 367,000 cords of green wood or about 590,000 

tons of wood pellets. This result varies depending on stove efficiency assumptions, 

but nevertheless illustrates that widespread conversion to biomass heating could 

generate substantial demand for woody material in Alaska. Our estimates are lower 

than were found in the previous report; the difference is primarily attributable to an 

assumption regarding the efficiency of heating oil systems. Rather than assume that 

the amount of distillate-derived energy to be replaced was the amount purchased by 

households, which implicitly assumes that their systems were 100-percent efficient, 

we realistically assumed that the amount of heat to replace is the amount actually 

felt by households, thus accounting for equipment efficiency losses on both sides of 

the conversion.

Most stoves listed 

on store websites 

were not available for 

purchase locally, nor 

were they eligible for 

shipping to Alaska. 
22

GENERAL TECHNICAL REPORT PNW-GTR-928

Our principal motivation for updating estimates of potential wood demand in 

Alaska has been to inform analyses for the Tongass National Forest plan amendment process. Our conclusions broadly confirm that the potential for large-scale 

conversion exists under a specific set of economic conditions. In addition to planning needs, this study could inform the multifaceted discussion surrounding bioenergy in both the unique region of southeast Alaska and forested areas elsewhere. 

Interest in reliable and locally available energy sources may presently be mitigated 

by temporarily falling fossil-fuel prices, and economically remote communities 

may presently be experiencing some relief owing to this recent global downturn, 

but neither situation is likely to be permanent. Assuming that attention to longer 

term trends in energy independence and the implications for forest management 

will prevail amidst these short-term fluctuations, the discussion of bioenergy will 

continue to foster wide-ranging interest that we hope our findings here will support.

Further Discussion and Research

The Forest Service aims to support efforts to substitute 30 percent of distillate fuel 

consumption in southeast Alaska with wood-based energy products (Deering 2014). 

No analysis has been published to date estimating the volume of wood required to 

meet that goal or the implications for harvest. The focus has instead been centered 

on the economic benefits of lower cost space heating and the impact on the wood 

products industry from growing wood-based energy markets. The wood necessary 

to meet demand from such a conversion could come from unutilized low-grade 

utility logs partly supplied by the Tongass, or sawmill residues produced by Alaska 

timber processors. Ultimately, the framework used to analyze the residential sector 

here will be combined with estimates for the commercial and industrial sectors in 

southeast Alaska to arrive at the volumes necessary to meet the 30-percent conversion goal in support of the Tongass National Forest’s planning process in 2015. 

Our qualitative assessment of stove availability from the spot check of Alaska 

retailers addresses some practical concerns for large-scale conversion to wood 

energy products in Alaska. Foremost is that Alaskans who are not in reasonable 

proximity to Anchorage, Fairbanks, Juneau, or Wasilla have limited retail purchasing opportunities, because few stoves can be shipped. Although local retailers are 

likely present in these locations, prices may not be competitive with large national 

chains. In addition, consumers may not have ready access to combustion efficiency 

values when evaluating choices between stoves. Given the sensitivity of cost 

comparisons to efficiency assumption shown by our analysis, marketing efforts 

to provide consumers with more information on combustion efficiency could help 

build interest in new, cleaner wood energy systems.

Marketing efforts to 

provide consumers 

with more information 

on combustion 

efficiency could help 

build interest in new, 

cleaner wood energy 

systems.
23

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Recent declining oil prices have implications for the results of this analysis. As 

of February 2, 2015, national residential heating oil prices averaged less than $2.80 

per gallon, $1.44 per gallon less than the previous year’s price for the same week. 

Wholesale heating oil prices averaged $1.83 per gallon, $1.61 per gallon lower when 

compared to the same time last year (USDE EIA 2015c). Because the decline in 

fuel oil price affects the relative affordability of wood energy products, we briefly 

investigated current heating oil prices in Alaska. We contacted four southeast 

Alaska heating oil distributors in Haines, Juneau, Ketchikan, and Wrangell in 

mid-February 2015, asking for the current price of Fuel Oil #1. Prices ranged from 

$3.24 to $3.94 per gallon, with Juneau being the least expensive and Haines the 

most. Recall that the average southeast Alaska heating oil price reported in January 

2015 was $4.46 per gallon. Table 8 in the appendix shows that the break-even price 

of wood alternatives to heating oil priced at $3.50 per gallon is $356 per cord for 

firewood and $377 per ton for pellets. Although fuel prices are expected to rebound, 

the price of wood energy products relative to heating oil may not be enough to motivate widespread conversion to wood systems currently. 

Acknowledgments

This analysis was funded by the U.S. Forest Service Alaska Region in support of 

efforts to amend the 2008 Tongass Land Management Plan. We are thankful to 

Allen Brackley, Robert Deering, Erik Berg, and David Nicholls for their valuable 

input and comments. 

Metric Equivalents

When you know: Multiply by: To find:

Cubic feet (ft3) 0.0283 Cubic meters (m3)

British thermal units (Btu) 3,412.14 Kilowatt-hour

British thermal units (Btu) 100,000 Therms

Pounds (lbs.) 2,400 Bone dry units

Cords (green weight) 2.5 Tons 

Although fuel prices 

are expected to 

rebound, the price of 

wood energy products 

relative to heating oil 

may not be enough to 

motivate widespread 

conversion to wood 

systems currently.
24

GENERAL TECHNICAL REPORT PNW-GTR-928

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Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

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GENERAL TECHNICAL REPORT PNW-GTR-928

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(February 12, 2015). 
27

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Table 8—Price equivalency between heating oil and wood energy alternatives, 

60-percent combustion efficiency

Paying this price for a 

gallon of heating oil...

Is like paying this much 

for a cord of wood:

And this much for a 

ton of wood pellets:

- - - - - - - - - - - - - - - - - - - - - U.S. dollars - - - - - - - - - - - - - - - - - - - -

2.00 203.59 215.73

2.50 254.48 269.67

3.00 305.38 323.60

3.50 356.27 377.53

4.00 407.17 431.47

4.50 458.07 485.40

5.00 508.96 539.33

5.50 559.86 593.27

6.00 610.76 647.20

6.50 661.65 701.13

7.00 712.55 755.07

7.50 763.45 809.00

8.00 814.34 862.93

8.50 865.24 916.86

9.00 916.14 970.80

9.50 967.03 1,024.73

10.00 1,017.93 1,078.66

Appendix—Fuel price equivalencies between wood 

energy and heating oil, natural gas, and electricity
28

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 9—Price equivalency between natural gas and wood energy alternatives, 

60-percent combustion efficiency

Paying this price for a 

thousand cubic feet of 

natural gas...

Is like paying this much 

for a green cord of wood:

And this much for a 

ton of wood pellets:

- - - - - - - - - - - - - - - - - - - - - - U.S. dollars - - - - - - - - - - - - - - - - - - - -

6.00 77.67 82.30

6.50 84.14 89.16

7.00 90.61 96.02

7.50 97.09 102.88

8.00 103.56 109.74

8.50 110.03 116.60

9.00 116.50 123.46

9.50 122.98 130.31

10.00 129.45 137.17

10.50 135.92 144.03

11.00 142.39 150.89

11.50 148.87 157.75

12.00 155.34 164.61

12.50 161.81 171.47

13.00 168.28 178.33

13.50 174.76 185.18

14.00 181.23 192.04
29

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Table 10—Price equivalency between electricity and wood energy alternatives, 

60-percent combustion efficiency

Paying this price for a 

kilowatt-hour of electricity...

Is like paying this much 

for a green cord of wood:

And this much for a 

ton of wood pellets:

- - - - - - - - - - - - - - - - - - - - U.S. dollars - - - - - - - - - - - - - - - - - - - -

0.06 234.47 248.46

0.08 312.62 331.28

0.10 390.78 414.09

0.12 468.93 496.91

0.14 547.09 579.73

0.16 625.24 662.55

0.18 703.40 745.37

0.20 781.56 828.19

0.22 859.71 911.01

0.24 937.87 993.83

0.26 1,016.02 1,076.64

0.28 1,094.18 1,159.46

0.30 1,172.33 1,242.28

0.32 1,250.49 1,325.10

0.34 1,328.64 1,407.92

0.36 1,406.80 1,490.74

0.38 1,484.96 1,573.56
30

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 11—Price equivalency between heating oil and wood energy alternatives, 

80-percent combustion efficiency

Paying this price for a 

gallon of heating oil...

Is like paying this much 

for a green cord of wood:

And this much for a 

ton of wood pellets:

- - - - - - - - - - - - - - - - - - - - - - U.S. dollars - - - - - - - - - - - - - - - - - - - -

2.00 271.45 215.73

2.50 339.31 269.67

3.00 407.17 323.60

3.50 475.03 377.53

4.00 542.90 431.47

4.50 610.76 485.40

5.00 678.62 539.33

5.50 746.48 593.27

6.00 814.34 647.20

6.50 882.20 701.13

7.00 950.07 755.07

7.50 1,017.93 809.00

8.00 1,085.79 862.93

8.50 1,153.65 916.86

9.00 1,221.51 970.80

9.50 1,289.38 1,024.73

10.00 1,357.24 1,078.66
31

Estimates of Wood Energy Demand for Residential Use in Alaska: an Update

Table 12—Price equivalency between natural gas and wood energy alternatives, 

80-percent combustion efficiency

Paying this price for a thousand 

cubic feet of natural gas...

Is like paying this much 

for a green cord of wood:

And this much for a 

ton of wood pellets:

- - - - - - - - - - - - - - - - - - - - U.S. dollars - - - - - - - - - - - - - - - - - - -

6.00 103.56 82.30

6.50 112.19 89.16

7.00 120.82 96.02

7.50 129.45 102.88

8.00 138.08 109.74

8.50 146.71 116.60

9.00 155.34 123.46

9.50 163.97 130.31

10.00 172.60 137.17

10.50 181.23 144.03

11.00 189.86 150.89

11.50 198.49 157.75

12.00 207.12 164.61

12.50 215.75 171.47

13.00 224.38 178.33

13.50 233.01 185.18

14.00 241.64 192.04
32

GENERAL TECHNICAL REPORT PNW-GTR-928

Table 13— Price equivalency between electricity and wood energy alternatives, 

80-percent combustion efficiency

Paying this price for a 

kilowatt-hour of electricity...

Is like paying this much 

for a green cord of wood:

And this much for a 

ton of wood pellets:

- - - - - - - - - - - - - - - - - - - U.S. dollars - - - - - - - - - - - - - - - - - - - - - -

0.06 312.62 248.46

0.08 416.83 331.28

0.10 521.04 414.09

0.12 625.24 496.91

0.14 729.45 579.73

0.16 833.66 662.55

0.18 937.87 745.37

0.20 1,042.07 828.19

0.22 1,146.28 911.01

0.24 1,250.49 993.83

0.26 1,354.70 1,076.64

0.28 1,458.90 1,159.46

0.30 1,563.11 1,242.28

0.32 1,667.32 1,325.10

0.34 1,771.53 1,407.92

0.36 1,875.73 1,490.74

0.38 1,979.94 1,573.56
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