Pellet fuel is a local, renewable and sustainable heating alternative. Wood pellets are manufactured by using sawmill residues or pulp quality roundwood. The wood fibre is broken up into sawdust and formed into pellets by forcing the sawdust through a die.

Traditionally pellet fuel for heating has been used by residential consumers but can also be found in such large-scale environments as schools and hospitals. North American pellets are produced in manufacturing facilities in Canada and the United States, and are available for purchase at fireplace dealers, nurseries, building supply stores, feed and garden supply stores and some discount merchandisers.