Wood pellets are the most standardized, sustainable and widely used biomass for large-scale power generation and heating use in Europe and Asia. 

Global interest in wood pellets has grown considerably in recent years. Used for generating heat in the home, and for power generation at an industrial scale, pellets are becoming an important element of the fuel mix.

Wood pellets are made from:
 

• Mill residues - sawdust, chips and other by-products from the processing of timber

• Low grade wood fibre, which is wood that is unsuitable for lumber or sawmilling industries due to size or disease

• Tope and limbs of tress, which are the parts that cannot be processed into lumber

• Commercial thinnings:  Harvests that promote the growth of higher value timber by removing weaker or deformed trees  

  
According to the UK Environment Agency, switching from coal to biomass reduces emissions of carbon dioxide by between 74 and 90% on a lifecycle basis.

On an industrial level, wood pellets can burn alongside coal in a co-firing capacity or replace coal completely in full boiler conversions. Alternatively they are consumed at new dedicated biomass combined heat and power plants or district heating units.

Recognised today as a commodity, the industrial wood pellet has been transformed in recent years to become a widely used and globally recognised standard. This standard was created by a group of major European utilities, including Drax, RWE and Engie, and was labelled as the Industrial 2 standard. You can see the full specification here.