The short version
Pellets exist because sawmills produce more residue than they can use and because renewable energy rules in Europe and Asia count biomass as low-carbon. Compressing sawdust raises its energy density enough to justify ocean freight.
Stage by stage
Mill residue
Sawdust, shavings and chips from the saw and planer lines, plus low-grade roundwood where residue alone is not enough.
Drying
Residue arrives wet and must be dried before it will pellet. Drying is the largest energy cost in the plant and the main source of its own emissions.
Note: Moisture driven off as water vapour.
Pelletising
Forced through a die under pressure; the wood's own lignin softens and binds the pellet. Graded on diameter, durability, ash and chloride.
Industrial pellets
Loaded in bulk at purpose-built port terminals and shipped, mostly from North America and the Baltic to Europe, Japan and South Korea.
Bioenergy and heating
Burned in converted coal units and dedicated biomass plants under renewable obligations, and in domestic stoves at the premium end.
