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Woodworking & Lumber

Wood Pellet Buying Guide: Types, BTU Ratings, Ash Content & Storage Tips

Lumberama Editorial Team, Wood Heating & Pellet Fuel Specialists Mar 12, 2025 10 min read
Bags of premium wood pellets stacked next to a pellet stove with a close up showing the compressed wood cylinder pellets

What Are Wood Pellets

Wood pellets are small cylinders (typically 1/4" diameter x 1" long) made from compressed sawdust, wood shavings, and other wood processing byproducts. The wood is dried, ground to a uniform size, and compressed under high pressure through a die. The compression generates heat that activates the natural lignin in the wood, binding the pellet without adhesives or chemicals.

Wood pellets are primarily used as fuel in pellet stoves and pellet boilers for residential and commercial heating. They burn more cleanly and efficiently than cordwood, produce minimal creosote, and can be automatically fed from a hopper, making pellet stoves convenient (load the hopper, set the thermostat, and the stove does the rest).

Premium vs Standard Pellets

Premium pellets: Less than 1% ash content by weight. Burns cleaner, produces less ash in the burn pot, and requires less frequent cleaning. Premium pellets are made from clean sawdust and wood fiber with no bark, which is the primary source of ash. Most homeowners should use premium pellets — the extra cost ($10-$30 more per ton) is offset by less cleaning and better stove performance.

Standard pellets: 1-3% ash content. Contains some bark, which increases ash production. Standard pellets cost less but produce more ash, requiring more frequent cleaning of the burn pot and ash pan. Some stoves are designed to handle higher-ash pellets with self-cleaning burn pots; check your stove's specifications.

Utility/industrial pellets: Above 3% ash. Used in commercial boilers and biomass power plants, not residential pellet stoves. Too much ash for most home stoves.

Hardwood vs Softwood Pellets

Hardwood pellets: Made from oak, maple, cherry, beech, and other hardwoods. Hardwood pellets tend to produce slightly more ash than softwood pellets because hardwoods have higher mineral content. However, hardwood pellets burn longer per pellet due to higher density. Hardwood pellets are the traditional choice in the eastern US where hardwood sawmill residuals are abundant.

Softwood pellets: Made from pine, spruce, fir, and other softwoods. Softwood pellets have higher BTU output per pound than hardwood pellets because softwoods contain more resin (which has a higher energy content). Softwood pellets also produce less ash. Many pellet stove experts consider softwood pellets the better fuel: higher BTU, lower ash, and slightly lower cost. The myth that softwood pellets cause creosote buildup (as with cordwood) doesn't apply to pellets because the wood is dried to 5-7% moisture before pelletizing.

Blended pellets: A mix of hardwood and softwood. Common and often the most cost-effective option. Performance falls between pure hardwood and pure softwood.

BTU Output

Wood pellets produce approximately 8,000-8,500 BTU per pound (premium pellets). A standard 40-pound bag contains approximately 320,000-340,000 BTU. A ton of pellets (50 bags) contains approximately 16-17 million BTU. For comparison, a cord of seasoned hardwood (oak) contains approximately 24 million BTU, but cordwood burns less efficiently (60-80% efficiency in a modern wood stove vs. 80-90% in a pellet stove). When adjusted for efficiency, a ton of pellets provides comparable heating to about one cord of hardwood.

How Much You Need

A typical New England home uses 3-5 tons of pellets per heating season (roughly October through April). This varies enormously based on home size, insulation quality, climate zone, and thermostat setting. At current prices of $250-$350 per ton (2024-2025), a season's heating costs $750-$1,750 in pellets. Pellet stoves work well as primary heat sources or as supplements to oil, gas, or electric heating systems.

Storage

Wood pellets must be kept dry. Moisture causes pellets to swell, crumble, and become unusable (they won't feed through the auger and produce excessive ash). Store pellets in a dry area: a garage, basement, shed, or covered area. Keep bags off the floor on pallets to prevent moisture wicking from concrete. Unopened bags in intact plastic wrap are moisture-resistant, but once opened, use the pellets within a few weeks or transfer to a sealed container.

Frequently Asked Questions

Lumberama Editorial Team

Wood Heating & Pellet Fuel Specialists

Contributor to Lumberama’s reference library. Read our editorial standards and source methodology.

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