Wood pellets are a wood by-product that is burned for heat and energy, and are an example of biomass fuel. Biomass fuels are a renewable resource, and given proper forest management, are limitless.

Manufacturers of wood pellets in British Columbia, take sawmill sawdust, and turn it into bullet-sized pellets that are uniform in size, shape, moisture, density and energy content. These pellets have substantially lower moisture content than cordwood or chips, increasing their burn efficiency.

The pellets' high density and uniform shape allow them to be easily transported in rail cars stored in standard silos, and exported on cargo ships to overseas destinations.

British Columbia export wood pellets are used primarily in European electric plants where they are burned along with coal.