Pellets are produced by compressing the wood material which has first passed through a hammer mill to provide a uniform size of material and then dried. This wood fibre is fed to a press where it is squeezed through a die having holes of the size required (normally 6 mm diameter, sometimes 8 mm or larger). The high pressure of the press causes the temperature of the wood to increase greatly, and the lignin plasticizes slightly forming a natural "glue" that holds the pellet together as it cools. Wood pellets made from the residuals available in BC have no additives or binders.
Wood Pellets can be transported compactly in a variety of enclosed containers and stored in standard silos thanks to their high density and uniform shape. They can be moved and stored with conventional grain equipment allowing for ease of transport to the customer. The high bulk density of the material further reduces transportation costs and the carbon footprint associated with shipping raw wood products. Additionally, wood pellets do not pose the explosive or environmentally polluting risks associated with transporting fossil fuels.