Pellet fuels are heating fuels made from compressed biomass. Wood pellets are the most common type. A form of wood fuel, wood pellets are generally made from compacted sawdust or other wastes from sawmilling and other wood products manufacture. Other woody biomass sources include palm kernel shell, coconut shell, and whole-tree removal or tree tops and branches leftover after logging and which otherwise help replenish soil nutrients. As well grasses can also be pelletized, creating grass pellets.

Wikipedia