Wood pellets are made from dried and densified sawdust, shavings or wood powder. Pelletization is currently the most economic and energy saving ways to convert biomass into a fuel with high energy density and consistent quality. For this reason it is one of the fastest growing forms of upgraded biomass in Europe and world wide.

Pellets can be used both for residential and commercial heating and for power production. Global markets have exceeded 27 million tons of annual production in 2014 . Europe is currently the largest market for pellets.