Wood Pellets Guide 2025: Types, Pricing, Efficiency, Certifications & Usage Explained

What Are Wood Pellets?

Wood pellets are compressed biomass fuel made primarily from sawdust, wood chips, and other wood industry byproducts. They come in small cylindrical shapes—typically 6mm or 8mm in diameter—and are used for heating, cooking, and industrial fuel.

Because they’re made from waste materials, wood pellets offer an environmentally friendly alternative to fossil fuels.

How Wood Pellets Are Made

Wood pellets are produced through a multi-step manufacturing process:

1. Raw material collection – sawdust, chips, shavings, forestry residues

2. Drying – materials are dried to a moisture level of 6–12%

3. Grinding – wood is processed into fine powder

4. Compression – material is forced through a pellet mill die

5. Cooling – pellets harden and gain durability

6. Screening – dust and fines are removed

7. Packaging – pellets are bagged or loaded for bulk delivery

The natural lignin in wood acts as a binder, meaning no chemicals are required.

Raw Materials Used

Wood pellets can be made from:

• Sawdust

• Wood chips

• Shavings

• Forestry residues

• Logging waste

• Sometimes agricultural waste (in biomass pellets)

Different raw materials affect heat output, ash content, and burning characteristics.

Why Wood Pellets Burn Efficiently

Wood pellets burn efficiently because:

• They have low moisture content (6–12%)

• They are densely compressed, increasing energy per volume

• They burn consistently due to uniform shape and size

• They create very low ash, allowing longer stove runs

• They generate high BTU output, rivaling conventional firewood

This combination makes pellets one of the most efficient renewable fuels available.

Benefits of Using Wood Pellets

High Efficiency

Pellets typically provide 8,000–9,500 BTU per pound, depending on wood type. Their density and uniformity allow pellet stoves and boilers to achieve efficiency levels of 80–90%, significantly higher than traditional wood stoves.

Low Emissions

Because pellets burn cleanly and consistently, they produce:

• fewer particulates

• lower smoke levels

• reduced CO₂ emissions

Certified wood pellets are often considered carbon-neutral.

Affordable Heating Source

Pellets are generally cheaper than:

• electricity

• propane

• heating oil

Especially in cold climates, many households save hundreds of dollars per year by switching to pellets.

Easy Storage

Pellets come in:

• 15 kg / 40 lb bags

• 1-ton pallets

• bulk delivery

They take up less space than firewood and don’t attract pests.

Eco-Friendly (Carbon Neutral)

Because the carbon released during pellet burning equals the carbon absorbed during tree growth, wood pellets are considered a renewable, sustainable heating fuel.

Types of Wood Pellets

Softwood Pellets

Made from coniferous woods like pine and fir.
Features:

• Higher BTU output

• Lower ash content

• Faster ignition

• Stronger aroma (good for BBQ pellets)

Hardwood Pellets

Made from woods such as oak, beech, maple.
Features:

• Longer, steady burn

• Often slightly more ash

• Popular for household heating

Which Burns Hotter?

Softwood pellets generally burn hotter because softwoods contain more natural resins, which increase heat output.

Which Creates Less Ash?

Softwood pellets typically produce less ash, making them ideal for stoves and boilers needing minimal maintenance.

Softwood vs Hardwood Wood Pellets

Wood Pellets Standards & Certifications

ENplus A1

• Highest quality grade

• Low ash (<0.7%)

• Suitable for residential heating

ENplus A2

• Slightly higher ash content (<1.2%)

• Suitable for larger stoves and commercial systems

PFI Standard

Common in North America.
Defines:

• Pellet density

• Moisture percentage

• Ash level

DINplus Standard

Strict German quality certification ensuring:

• Very low fines

• High durability

• Consistent burn performance

What These Certifications Mean

• Ash Percentage – lower ash = cleaner burn

• Moisture Content – below 10% is ideal

• Durability – prevents pellets from crumbling in bags

Wood Pellet Pricing Guide

Price per Bag

Globally, prices vary by region:

• €4–€7 per 15kg bag (Europe)

• $5–$8 per 40lb bag (North America)

Price per Ton

Most suppliers sell by the ton (50 bags):

• $230–$400 per ton (North America)

• €250–€450 per ton (Europe)

Seasonal Pricing

Pellet prices increase in:

• late fall

• winter

Best time to buy is late spring to early summer.

Bulk Buying vs Retail

Bulk pellets reduce cost by 10–30%, especially for users with:

• pellet boilers

• whole-house systems

• large annual consumption

How Many Wood Pellets Do You Need? (Consumption Guide)

How to Calculate Pellet Usage

Average home consumption:

• 1–1.5 tons per winter for mild climates

• 3–4 tons per winter for cold climates

Formula (simple estimate):
Home size (sq ft) ÷ 1,000 × 1.5 tons/year

Home Size vs Pellet Consumption

• 1,000 sq ft → 1–1.5 tons

• 2,000 sq ft → 2–3 tons

• 3,000 sq ft → 3–5 tons

Stove vs Boiler Usage

Pellet stoves heat one zone.
Pellet boilers heat entire homes, consuming more fuel.

Wood Pellet Sizes: 6mm vs 8mm

Which Size Fits What Stove?

• 6mm is the most common globally

• 8mm is common in older European boilers

Always follow manufacturer recommendations.

Heat Difference

Heat output is similar, but:

• 6mm feeds more consistently

• 8mm burns slightly slower

Best Wood Types for Pellets

Pine

• High heat

• Very low ash

• Popular softwood option

Fir

• Extremely clean burning

• High BTU rating

Oak

• Long-lasting burn

• Stable heat

Beech

• Balanced BTU and ash levels

Where to Buy Wood Pellets

Local Suppliers

• Hardware stores

• Heating supply stores

• Local mills

Online Stores

• Amazon

• Specialized pellet retailers

• Manufacturer websites

Bulk Distributors

• Industrial pellet producers

• Regional energy suppliers

• Biomass fuel hubs

How to Store Wood Pellets (Best Practices)

Keep Pellets Dry

Moisture is the enemy—wet pellets expand and crumble.

Avoid Humidity

Store in a:

• dry room

• garage

• shed

Best Storage Containers

• Pellet storage bins

• Airtight containers

• Pallets + tarp (if outdoors)

Conclusion

Wood pellets are a clean, efficient, and eco-friendly heating alternative suitable for homes, businesses, and industrial applications. By understanding pellet types, pricing, certification standards, and usage, you can choose the best fuel for your heating system and reduce overall heating costs.

For deeper guides, explore the full wood pellet cluster:

• Softwood vs Hardwood Pellets

• How to Choose High-Quality Wood Pellets

• Wood Pellets per Ton Pricing Guide

• 6mm vs 8mm Pellets

• Best Wood Types for Pellets

• Top Wood Pellet Suppliers

FAQ

1. Are wood pellets cheaper than propane or heating oil?

Yes. In most regions, wood pellets cost less per BTU than propane, electricity, and heating oil, making them a more affordable heating option.

2. How long does a 40 lb (15 kg) bag of wood pellets last?

Most pellet stoves consume 1–3 bags per day depending on heat settings, stove efficiency, and climate.

3. How many bags of pellets equal one cord of firewood?

Roughly 1 ton of pellets (50 bags) equals 1.5 cords of seasoned hardwood in heat output.

4. Can wood pellets expire or go bad?

Pellets do not expire, but they must be kept dry. Moisture causes pellets to swell, crumble, and become unusable.

5. Are softwood pellets really better than hardwood pellets?

Yes for efficiency: softwood generally burns hotter and produces less ash.
Hardwood is preferred for longer burns, but both can be premium-grade depending on certification.

6. What is the ideal moisture content for high-quality pellets?

Between 6–10%. Lower moisture means better ignition and higher efficiency.

7. Can I use 8mm pellets in a stove designed for 6mm?

Usually no—always follow manufacturer recommendations. Incorrect pellet size can cause feeding issues.

8. How many tons of pellets does an average home need?

• Mild climates: 1–1.5 tons per winter

• Cold climates: 3–4 tons per winter

9. What is the difference between ENplus A1 and A2 pellets?

A1 has lower ash and higher quality, ideal for homes.
A2 allows slightly higher ash, suitable for commercial systems.

10. Are wood pellets environmentally friendly?

Yes. Pellets are carbon-neutral because the CO₂ released during combustion equals what the wood absorbed during growth.

11. Can I store wood pellets outside?

Yes, but only if they are covered, elevated, and fully protected from moisture.

12. Which wood type has the highest BTU output?

Softwoods like pine and fir typically produce the highest BTU due to natural resins.