Pellet fuels are heating fuels made from compressed biomass.
Wood pellets are the most common type.
A form of wood fuel, wood pellets are generally made from compacted sawdust or other wastes from sawmilling and other wood products manufacture,.[1] Other woody biomass sources include palm kernel shell, coconut shell, and whole-tree removal or tree tops and branches leftover after logging and which otherwise help replenish soil nutrients.[2]

As well grasses can also be pelletized, creating grass pellets. Pellets are manufactured in several types and grades as fuels for electric power plants, homes, and other applications in between.[3] Pellets are extremely dense and can be produced with a low moisture content (below 10%) that allows them to be burned with a very high combustion efficiency.[4] Further, their regular geometry and small size allow automatic feeding with very fine calibration.
 They can be fed to a burner by auger feeding or by pneumatic conveying. Their high density also permits compact storage and rational transport over long distance. They can be conveniently blown from a tanker to a storage bunker or silo on a customer's premises.[5]
A broad range of pellet stoves, central heating furnaces, and other heating appliances have been developed and marketed since 1993.[citation needed]

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With the surge in the price of fossil fuels since 2005, the demand for pellet heating has increased in Europe and North America, and a sizable industry is emerging. According to the International Energy Agency Task 40, wood pellet production has more than doubled between 2006 and 2010 to over 14 million tons.[6] In a 2012 report, the Biomass Energy Resource Center says that it expects wood pellet production in North America to double again in the next five years.