Ian Burnes, Office of Energy Independence and Security

BETHEL - Les Otten isn't the type to take a 20-minute shower.

But the entrepreneur wanted to test drive a new eco-friendly heating system he'd just installed in his home, a unit that his company, Maine Energy Systems, is introducing to Maine this spring. Lewiston-Auburn will be the system's launch site.

"I realized, not only was I clean, but the environment was cleaner and my wallet was not cleaned out," he quipped of his experiment.

The system, imported from Europe, is based on a wood-pellet fueled boiler that promises to deliver plenty of heat without contributing to global warming. At current prices, it would cost about half as much to run as a conventional oil-fired furnace, according to numbers from both Otten and the state.

"And it significantly reduces our dependence on foreign oil," said Otten, who still recalls the economic blows to Maine from the 1970s oil embargo.

His ski businesses at the time suffered a one-two punch. The scarcity and price of gas and oil made people reluctant to drive to his lodges and, once there, were difficult to keep warm.

Maine's heavy reliance on oil (about 80 percent of homes heat with it) has been a concern ever since, he said. Capitalizing on new technologies and a groundswell of political support for green energy, Otten said he and some colleagues spent the past 14 months researching alternative energy sources for home heating. They considered wind, solar, geo thermal and others, but were unable to find a U.S.-made system that was environmentally sensitive and affordable for the average Maine family.

They looked to Europe where wood-pellet furnaces are common. The problem was finding a system compatible with American standards.

Otten negotiated with Bosch, an industrial manufacturer in Germany.

"Basically we gave our specs to Bosch," said Otten. Several months later, they had their system, which is approved by Underwriters Laboratories and the American Society of Mechanical Engineers for reliability.

The system is a welcome option for Mainers trying to lower their energy costs, said Ian Burnes, deputy director of policy and planning for the state's Office of Energy Independence and Security.

"Maine is the most dependent on heating oil in the entire U.S.," said Burnes. "That consumers have another option to heat their homes is fantastic. That they can do it at a lower cost and in a more environmentally friendly way is terrific."

His office has done a comparison between oil and wood-pellet-fueled heating systems. For the same amount of energy produced, wood pellets cost about half, he said.

Otten's system works like a regular oil-fired furnace except for the fuel. High-grade wood pellets are pumped into storage units near the boiler. The fuel is transferred into the boiler by an automatic feeder and fanned to ensure intense combustion; temperature is controlled by a conventional thermostat. The system is tight, according to Otten, producing very little emission; the ash that needs to be emptied twice a season from the unit can be dumped in the backyard garden.

Otten said MESys will install and service the systems, as well as deliver the pellets. He's talking with a mill in Strong to develop the wood pellets, which he now imports from a certified sustainable forest products company out of state. He's also looking at sites in L-A to set up a distribution facility.

The cost to install the system runs between $11,000 and $13,000 - about twice as much as a conventional oil-fired boiler. MESys estimates the payback for it would be about five years.

To make the upfront costs more manageable, Otten is partnering with Northeast Bank, which is on board to provide 100 percent financing for any homeowner whose remaining mortgage amount is below 80 percent of the home's assessed value. Lewiston-Auburn leads the state in that category, which is why the company is launching its product here.

Jim Delamater, president and CEO of the bank, said when Otten - a longtime friend - approached him about helping people finance the conversion, he was enthused.

"When he said he was studying the whole notion of lower energy costs, I said 'Count us in,'" said Delamater, who serves on the governor's wood-to-energy task force. "If this can cut energy costs by roughly half, we'd like to help a lot of people make that transition."

The bank has a special loan program set up to finance the installation cost for 20 years at 6. 5 percent. It's also finalizing details with insurance carriers for coverage options. Delamater said a team of lenders would be available to consult with homeowners, acknowledging that other options, such as refinancing, might make more sense.

"The idea is to make sure it's affordable for them," he said. "People are so squeezed right now."

Otten acknowledged that introducing a new, green heating system to consumers will be a challenge. He hopes to capture 10 percent of the oil consumers within five to seven years. A calculator is available on the company's Web site at www.MaineEnergySystems.com to project fuel savings, financing costs and carbon footprint.

"I look at this as sort of a large social experiment," he said. "I don't honestly know the outcome."

But he's been passionate about the need to pursue alternative energy sources - as both a business strategy and a matter of public policy. In January, Gov. John Baldacci appointed him to chair a task force examining wood-to-energy options.

Burnes said homeowners should first maximize the efficiency of their houses regardless of heating source by insulating and buttoning up any leaks. But for those considering a conversion to wood-pellet boilers, Otten's company is the only one offering a product specifically for single-family homes, as well as maintenance and fuel supply services, Burnes said. (Evergreen Heat in Old Orchard Beach also sells ASME-certified wood-pellet boilers, but does not deliver pellets or provide servicing.)

Other groups are investigating commercial and industrial applications for wood pellet or wood chip heat, Burnes said. One is Dan Thayer, president of Thayer Corp. in Auburn.

The energy systems company recently designed and installed a wood-chip heating system for an industrial client and expects more requests to come.

"Biomass is a very good alternative for heating; we're doing a lot of work in that field," said Thayer. "And we expect in six months, it will explode."

He said the problem for his company has been acquiring the sophisticated boiler equipment widely available in Europe.

"I expect U.S. manufacturers will step up to the plate," he said. That should lower the installation costs for the units.

Until then, he, too, is glad for another option for heating Maine households. He said at the governor's recent energy conference, it was noted that about 90 cents of every $1 spent on fossil fuels leaves the state. Developing a clean energy source using Maine's renewable, sustainable forests is good news.

"It's been a while since we had a feel-good story about energy," he said.