Biomass wood pellets are very popular for electricity productions because of its environmental impact. This solid fuel is produced from wood residues through a process of milling, drying and compacting.

Raw materials are first dried to the desired moisture. Once the material is dried, it is ground so that each piece has a diameter that meets proper specifications. In some cases, the raw material is then conditioned in a steam conditioner to soften before it is compacted.

Pellet machines apply pressure to force the raw materials through holes that shape the pellets. Pressure and friction are used to increase the temperature of the wood, which in turn allows the lignum to soften and the wood fibers to be reshaped into pellets. After the pellets leave the extruder, they are air-cooled, the lignums solidify, and the pellet is formed. The dimensions, density, and other factors are specified by standards designed by industry groups.