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Pellet Machine Wood Pellets and the Wood Pellet Mill Wood pellets are a compressed form of wood residue predominantly used for pellet fuel, wood pellets are made in a wood pellet mill under high pressure. Wood pellets have a uniform shape, size and density and are ideal for automatic combustion systems such as pellet stoves and boilers. Fuel pellets can also be made from other biomass materials. This guide will show you how. Climate Change and Global Warming Challenging climate change requires we move away from fossil fuel energy, to lower carbon forms of energy. Wood pellets are not only carbon neutral, they can also be carbon negative by using the ash as a fertilizer. Carbon Neutral and Renewable Energy Wood pellets are carbon neutral as they are part of the current carbon cycle, and new tree's absorb the carbon from burnt wood pellets. Wood pellets also are a renewable form of energy unlike fossil fuels such as oil. Green Jobs and Economic Recovery Wood pellets can be produced on a large scale, and even on a small local level. Green energy jobs can be created nationally and locally in collecting wood resources, processing them into pellets and pellet distribution. Stable long terms jobs can therefore be created.