Pellet fuels (or pellets) are fuels made from compressed organic matter, or, biomass.[1] Pellets can be made from any one of five general categories of biomass: industrial waste and co-products, food waste, agricultural residues, energy crops and virgin lumber.[2] Wood pellets are the most common type of pellet fuel and are generally made from compacted sawdust and related industrial wastes from the milling of lumber, manufacture of wood products and furniture, and construction.

 

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