Various countries across the world have reported increase in the sales of pellet equipments. This high growth rate is tied to price and availability of supply of pellets. Small and medium size companies in various countries across the world are now starting production of biomass pellet fuel production. There are three major options of pellet production. One of them is large scale purposely built wood pellet facility. In this case, the company setting up the production plant should acquire large scale pellet making machine. This machine should only be acquired if there is reliable supply of high quality sawdust and other waste woods that are suitable for processing.

The second option of production is converting animal feed. The option is preferred because of its low cost because the machinery itself and other auxiliary equipments such as drier are already in existence.  For pelletization, grass has characteristics that are similar to those of wood.  Another advantage of this option is that it requires capital cost that is relatively low because the production can begin at modest pace and gradually increase with concomitant increase in market demand. The disadvantage with the process is that the pelletizer has lower rate of output than pellet mill of the same size which is designed for pelletizing wood. There may be need of modifying method and material handling.

Biomass pellet fuel production must be professionally done to ensure that the final product is of high quality. Pellets of poor quality contain contaminants and their crumble to dust may cause damage to the pellet boiler or stove.